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Informist, Monday, Apr. 20, 2026

By Shumaila Firoz 

MUMBAI - Tata Capital Ltd. is expected to report a sharp year-on-year jump in its net profit for the March quarter, driven mainly by growth in its loan book and improvement in margins, while a decline in credit costs is also expected to support profitability. Net interest income is also likely to improve on a yearly and sequential basis on the back of the loan growth, according to brokerages tracking the company. Some drag from the motor finance segment, however, is expected to persist during the quarter, the brokerages said. 

The financial services company is expected to report a consolidated net profit of INR 14.64 billion for the reporting quarter, up over 46% on year and nearly 12% sequentially, according to the average of estimates from four brokerages. The company is expected to report a net interest income of INR 35.69 billion for the March quarter, up nearly 22% on year, and almost 8% sequentially, according to the average of estimates. 

The highest estimate for the company's net profit is INR 15.40 billion by JM Financial Institutional Securities Pvt. Ltd., and the lowest is INR 14.07 billion by Kotak Securities Ltd. The highest estimate for net interest income is INR 36.75 billion by Nomura Equity Research, and the lowest is INR 34.01 billion by Kotak. 

Strong loan growth, improvement in margin and lower credit costs are expected to support the company's net profit. Gross loans are likely to grow 19% year-on-year, which may also support net interest income. "We expect Tata Capital to deliver 19% y-y (year-on-year) growth of gross loans which is in line with the management's guidance," Nomura said, although it added that the motor finance segment will continue to weigh on the performance in the reporting quarter. 

A 7-basis-point quarter-on-quarter decline in credit costs and an 11-basis-point expansion in net interest margin is also likely to boost the company's profitability, Nomura said. "We expect net profit to see 16% q-q (quarter-on-quarter) growth (y-y comparison is irrelevant as the base does not include Motor Finance book)" Nomura further added. Similarly, Kotak expects a decline in credit costs, "We pen down credit costs of 1% (1.3-1.6% in the previous four quarters)." 

The stock has fallen nearly 6% since the company announced its December quarter earnings. At 1400 IST, shares of Tata Capital traded at 336.50 rupees on the National Stock Exchange, down 0.5% from the previous close. 

Of the four brokerage reports on the company available with Informist, all have a ‘buy' or equivalent recommendation on the stock, with an average target price of INR 380 per share. This is over 12% higher than the current market price. Tata Capital Ltd. will announce its Jan-Mar results Thursday. 

Following are the March quarter earnings estimates for Tata Capital Ltd. from four brokerage firms in descending order of the estimate of net profit in INR billion: 

End 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

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