Tata Capital Limited

Financial Services — Credit Services · NSE

₹323.20+₹1.85 (+0.58%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Tata Capital Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tata Capital Limited, through its subsidiaries, provides various financial services to retail, SME, corporate, and institutional customers in India, Singapore, and the United Kingdom.

IndustryCredit Services

SectorFinancial Services

Employees17,286

Annual revenue₹29,745 Cr

How does it make money?

Turns over ₹29,745 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 17,286 employees supports ₹1.72 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.72 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 60.4% and earnings to grow about 30.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+60.4%

Est. earnings growth+30.0%

Analysts8

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 25.3x already prices in growth

Quality vs. Valuation

Company Quality

86/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

46/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

25.3x

Sector Median

17.0x

median of 4 sector peers

⚠️Against its sector it trades 49% above the peer median of 17.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

17.0x median of 4 peers · +49%

vs. generic bands

Fair

15x–35x

EV/EBITDA

35.1x

PEG

0.54

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 36.8% to 34.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 49% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 26% a year✓ 34.5% CAGR
Latest reported year was 40.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 32%✓ 34.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 10.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹1.36 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

25.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.75

Profitable

Profitable on a per-share basis

ROE

10.6%

Moderate

Moderate capital efficiency

ROCE

3.7%

Weak

Low return on total capital employed

Debt/Equity

5.03x

High

High leverage

Revenue Growth (YoY)

40.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

47.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.18%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹38,960 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

15.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

57.1%

Good

Healthy core-business profitability

Net Margin

39.7%

Good

Strong bottom-line conversion

Current Ratio

1.16

Adequate

Adequate, but no real cushion

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

328.9 / 350.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12,219 Cr	₹17,049 Cr	₹26,933 Cr	₹29,745 Cr	+34.5%
EBITDA	₹4,495 Cr	₹5,396 Cr	₹8,404 Cr	₹10,254 Cr	+31.6%
EBITDA Margin	36.8%	31.6%	31.2%	34.5%	—
ROCE	—	—	3.4%	3.7%	—
Total Debt	₹1.07 L Cr	₹1.40 L Cr	₹1.99 L Cr	₹2.28 L Cr	+28.8%
Free Cash Flow	—	—	-₹31,110 Cr	-₹38,960 Cr	—

🟢 Revenue has grown at 34.5% a year over 3 years.

🟢 EBITDA has grown at 31.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 36.8% to 34.5% over 3 years (-2.3 pts).

🟡 ROCE has held roughly flat at 3.7% over 3 years.

🔴 Total Debt has grown at 28.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2.91 L Cr

Total Liabilities

₹2.43 L Cr

Cash & Equivalents

₹3,641 Cr

Operating Cash Flow

-₹37,965 Cr

Capex

-₹995 Cr

Shareholding (proxy)

Institutional Holding

4.9%

Insider Holding

86.0%

Corporate Actions

Dividend Rate

₹0.57

Ex-Dividend Date

27 Jul 2026

Analyst Consensus

Recommendations

13 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹407.93

+26.2% vs CMP

Target Range

₹360 – ₹461

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 positive3 mixed2 general

Tata Capital Dividend 2026: ₹0.57, Record Date 27 Jul & History

INDmoney, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Tata Capital Limited Share Price - Live TATACAP Stock Price & Chart

Upstox, 16 Oct

Tata Capital share price: Why it is flat a year after its IPO

Value Research, 12 Oct

Tata Capital Q4FY26 Results: PAT up 51%, Net AUM grows 28% to ₹2,51,885 Cr

scanx.trade, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Tata Capital Bags Citi's 'Buy' On Initiation, As Brokerage Sees 32% Upside In Stock

NDTV Profit, 23 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Tata Capital shares fall even as Emkay sees growth, asset quality on track

Business Standard, 21 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 3 tripwires holding · see Key things to watch ↑