Tata Capital͏͏͏ I͏PO S͏e͏t͏ at͏͏ ₹͏15,5͏11.͏͏8͏7 C͏rore as FY25 Re͏venue ͏Surges 56͏% and͏ PAT Cro͏sses ͏₹36͏,550 ͏Cr͏ore

Mum͏͏bai͏, 1 October ͏2025: Tata C͏api͏tal Li͏mit͏ed ͏is gearin͏g ͏up ͏t͏o͏ laun͏ch its ͏₹1͏͏5,͏511͏͏.87 ͏cror͏e Ini͏tial Public O͏ffering (͏IPO) on 6͏ Oct͏ober 20͏2͏5͏, comb͏in͏ing ͏͏a ₹6͏͏,846 cr͏ore fr͏es͏h i͏ssue with an ₹8͏,665.͏87 cro͏re o͏͏ff͏er f͏or sale͏. The͏ mo͏ve ͏fo͏llo͏ws a st͏ron͏g f͏inancial pe͏rforma͏n͏ce in ͏͏FY25, with re͏venue, profi͏t,͏ a͏nd͏ asset͏s r͏isi͏ng shar͏p͏ly,͏͏ ͏ref͏lecting ͏robust cr͏edit ͏demand and͏ e͏ff͏ecti͏ve ope͏r͏a͏tional͏ ͏mana͏gement.͏

͏H͏͏eadqu͏͏a͏r͏tered i͏͏n M͏umb͏ai͏,͏ T͏ata ͏Capi͏͏t͏al͏ ͏͏operates i͏n reta͏il, SME,͏ ͏and cor͏po͏rate financin͏g,͏ with a ͏͏bran͏ch ͏n͏et͏work of͏ 1,516 l͏ocations acro͏͏ss 2͏7 st͏ates an͏d͏ union͏ territor͏i͏͏es. Its expandi͏͏ng fo͏o͏tpri͏n͏t, ͏c͏oupled wit͏h str͏ong͏ asset͏ growth and ͏st͏able ͏profit ͏marg͏ins͏,͏ reinforc͏es ͏i͏ts position a͏mo͏ng India’s ͏͏lead͏i͏ng NBF͏C͏s.

Assets Surges 41% to ₹2,484,650 Crore as Lending Growth Accelerates

Tata Capital’s total assets surged to ₹2,484,650.1 crore in FY25, up from ₹1,766,939.8 crore in FY24 and ₹1,356,261 crore in FY23, marking a 41% year-on-year increase. The growth stems from higher disbursements across personal loans, SME financing, and home loans, signalling strong market penetration and rising demand for credit. Expanding assets also bolstered the company’s market position as a leading non-banking financial company (NBFC) in India.

Revenue Climbs 56% to ₹283,698.7 Crore, Driven by Interest Income and Loan Expansion

The company recorded a 56% jump in revenue, from ₹181,983.8 crore in FY24 to ₹283,698.7 crore in FY25, reflecting the impact of an expanding loan portfolio and higher interest income. Compared with FY23 revenue of ₹136,374.9 crore, FY25 revenue more than doubled in two years. The rise demonstrates effective scaling of lending operations and sustained demand for consumer and corporate financing.

Profit After Tax Rises to ₹36,550.2 Crore, Reflecting Stable Margins Amid Higher Borrowings

Tata Capital reported Profit After Tax (PAT) of ₹36,550.2 crore in FY25, up 10% from ₹33,269.6 crore in FY24, and 24% higher than FY23’s ₹29,457.7 crore. Despite rising funding costs due to higher borrowings, profit growth remained healthy, underpinned by a PAT margin of 12.91%. The moderate pace of profit increase relative to revenue growth reflects the impact of interest and operational expenses.

Reserves and Surplus Strengthen to ₹234,586.1 Crore, Supporting Capital Adequacy

Tata Capital’s reserves and surplus increased from ₹197,140.8 crore in FY24 to ₹234,586.1 crore in FY25, demonstrating steady internal capital generation. This has enhanced the company’s net worth and supported a return on net worth (RoNW) of 11.2% and return on equity (RoE) of 11.04%, reflecting consistent shareholder value creation and balanced growth strategy.

Total Borrowings Hit ₹1,186,204 Crore, Debt-to-Equity Ratio at 6.6 Times Amid Scaling Operations

The company’s total borrowings climbed 50% year-on-year, from ₹791,428.8 crore in FY24 to ₹1,186,204 crore in FY25, while total liabilities rose to ₹1,431,942 crore, compared with ₹1,131,799 crore in FY24. The debt-to-equity ratio of 6.6 times reflects leverage to fund rapid lending expansion. The company maintains strong financial discipline, backed by high domestic credit ratings that ensure access to low-cost capital.

Key Performance Metrics Highlight Strong Operational Efficiency

Tata Capital demonstrated robust operational efficiency with earnings per share (EPS) of ₹9.3, reflecting healthy profitability per unit of equity. The net asset value (NAV) of ₹79.5 per share underscores the company’s strong capital base and ability to generate value for shareholders.

Its return on capital employed (RoCE) at 8.26% indicates effective utilisation of capital to generate earnings, while an EBITDA margin of 71.83% signals tight cost management and operational discipline.

Coupled with a PAT margin of 12.91% and a debt-to-equity ratio of 6.6, these metrics highlight balanced growth, efficient lending practices, and sustained profitability despite rising borrowings and funding costs.

IPO Structure and Key Dates: Anchor Investments Signal Early Confidence

Tata Capital IPO will open for subscription on 6 October 2025 and close on 8 October 2025, with allotment scheduled for 9 October, refunds and demat credits on 10 October, and tentative listing on 13 October 2025. Tata Capital secured ₹4,641.83 crore from anchor investors on 3 October, signalling institutional confidence ahead of the public offering. The price band is fixed at ₹310–₹326 per share, with a minimum lot size of 46 shares.

Tata Capital’s FY25 financial results demonstrate significant asset and revenue expansion, steady profit growth, and efficient operational performance. The IPO aligns with the company’s scaling strategy, reflecting disciplined capital management, growing credit demand, and a strong presence in India’s diversified financial services sector.

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