1. Opening Hook
Just when everyone decided NBFCs should behave like boring fixed deposits, Tata Capital showed up with a 39% PAT growth and said, “Surprise.”
This was the quarter where credit costs behaved, margins stayed disciplined, and Motor Finance—yes, that problem child—didn’t burn the house down. Management sounded calm, confident, and just smug enough to suggest they know something the market hasn’t fully priced in yet.
AUM crossed ₹2.6 trillion, asset quality didn’t blink, and ROA quietly improved while others were still explaining slippages. Of course, there’s fine print—there’s always fine print—but this call had fewer excuses and more execution than most NBFC concalls this season.
Stick around. The real fun begins when we decode what’s actually working, what’s being massaged, and where the risks are hiding behind “guidance comfort.”
2. At a Glance
- AUM ₹2.34T (ex-MF), ₹2.61T (incl. MF) – Size matters, and Tata Capital knows it.
- PAT up 39% YoY – Growth so clean it almost looks audited twice.
- Credit cost at 1.0% – Lower stress, or just good timing?
- GNPA 1.6%, NNPA 0.6% – Asset quality refusing to create drama.
- Cost-to-income 35.7% – Efficiency finally doing some heavy lifting.
- ROA 2.3%, ROE 14.3% – Respectable, not reckless.
3. Management’s Key Commentary
“Retail and SME now constitute ~87% of
our net AUM.”
(Translation: Corporate loans are on a diet; granular is the new religion.) 😏
“Unsecured retail disbursements have picked up with improving delinquency trends.”
(Translation: We broke things in FY24, fixed them quietly, and now want credit.)
“Annualized credit cost declined to 1.0%.”
(Translation: The stress test gods were kind this quarter.)
“Motor Finance turnaround is progressing as per plan.”
(Translation: It’s not fixed yet, but at least it’s not getting worse.) 😬
“Cost of funds declined by 23 bps QoQ.”
(Translation: AAA rating doing its job—cheap money, thank you very much.)
“Digital and GenAI are embedded across the loan lifecycle.”
(Translation: Slide deck says AI; spreadsheets say discipline.) 🤖
“We remain confident of delivering FY28 guidance.”
(Translation: Please don’t ask us about macro shocks.)
4. Numbers Decoded
| Metric | Q3FY26 | What It Really Means |
|---|---|---|
| Net AUM (ex-MF) | ₹2,34,114 Cr | Strong organic growth, retail-led |
| PAT | ₹1,285 Cr | Operating leverage kicking in |
| Credit Cost | 1.0% | Below fear, above complacency |
| Cost-to-Income | 35.7% | Scale finally showing up |
| ROA | 2.3% | Premium NBFC territory |
