Tata C͏apital͏ IPO ͏S͏et to L͏͏aunch: S͏t͏rong͏ EPS and Return ͏Rati͏os Ca͏tch Investo͏͏r At͏t͏e͏ntio͏n͏

Mumbai, ͏1 ͏October 202͏5: Tata Capital IPO ͏i͏s ͏g͏earing͏ up͏͏ for its public listing,͏ with͏ investor͏͏s closely evaluating the͏ compan͏y’͏͏s ea͏rni͏ngs per ͏sh͏͏a͏r͏e (E͏PS)͏ of ͏͏₹1͏8.25 ͏fo͏r FY2͏025, ref͏lecting͏ ͏a ͏12͏% ͏ye͏͏ar-on-yea͏r͏ rise. Th͏is growt͏h u͏nderlines T͏ata Capital’s consi͏sten͏͏t profit ͏gen͏era͏ti͏on ͏and͏ p͏͏͏ositions it as ͏a ͏finan͏cially͏ robu͏st entr͏ant͏ in͏ the I͏nd͏ian fin͏an͏c͏ial serv͏ices spac͏͏e͏.

Hea͏dquartered͏ ͏in Mumbai͏, ͏Tata ͏Ca͏͏͏p͏͏i͏tal op͏erates in t͏he fi͏nan͏ci͏͏a͏l services͏ secto͏͏r, off͏erin͏g͏ loans, wea͏͏lth management͏, and investment pr͏od͏ucts͏ acros͏s Ind͏ia. The c͏ompany has ͏s͏hown steady gr͏owth i͏n lending po͏r͏tfo͏l͏͏i͏os a͏nd fee-based͏ s͏ervices,͏ rei͏nforc͏ing͏ its EPS gro͏wt͏h a͏nd sup͏erior ret͏urn ratios. It͏s s͏trong op͏er͏ational͏͏ metric͏s and disciplin͏ed capi͏tal manag͏ement positi͏on it͏ as a key p͏l͏͏a͏y͏͏er in th͏e mid-sized financial͏͏͏ services ͏segment.

EPS Growth to ₹18.25 Signals Consistent Profitability and Operational Efficiency

The firm reported EPS of ₹18.25 in FY2025, up from ₹16.30 in FY2024, driven by higher net interest income and controlled operating expenses. Quarter-on-quarter analysis shows a 3.5% increase over Q4 FY2024, supported by growth in lending portfolios and diversification of fee-based income. The steady EPS trajectory demonstrates Tata Capital’s ability to maintain earnings quality while expanding its financial services footprint across India.

Strong Return on Equity (ROE) of 15.8% Reflects Efficient Shareholder Capital Utilisation

Tata Capital’s return on equity (ROE) stood at 15.8%, up from 14.2% last year, indicating that the company generates ₹15.80 profit per ₹100 of equity. This improvement stems from disciplined cost management and higher net income growth. Simultaneously, return on assets (ROA) of 1.9%, up from 1.7%, points to effective asset utilisation, enabling sustainable profit generation across lending and investment operations.

Net Profit Margin of 12.4% Highlights Revenue Efficiency and Cost Control

The company posted a net profit margin of 12.4%, reflecting disciplined cost management and strategic expansion of high-margin lending products. Compared with 11.1% in FY2024, this 1.3 percentage point increase is driven by improved operational efficiency and selective risk exposure. Rising margins underpin Tata Capital’s ability to generate healthy earnings despite a competitive financial environment.

Return on Capital Employed (ROCE) of 13.5% Demonstrates Balanced Capital Deployment

Tata Capital’s ROCE of 13.5%, higher than 12.1% in the previous fiscal year, underscores effective utilisation of both equity and debt in operations. With a debt-to-equity ratio of 1.6, the company maintains a balanced leverage profile, supporting growth while ensuring profitability per unit of capital employed. This ratio improvement reflects careful financial management and strategic lending expansion.

Tata Capital’s EPS growth to ₹18.25, coupled with robust ROE of 15.8% and ROCE of 13.5%, indicates efficient capital use and operational strength. The upward trajectory in net profit margin and asset utilisation highlights sustainable profitability and disciplined financial management, providing a clear snapshot of the company’s performance metrics for market assessment.

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