In the corresponding period last year, it had logged a profit of ₹1,051.70 crore, according to a regulatory filing.

Its net interest income (NII) advanced 28% YoY to ₹3,127 crore for the quarter under review, compared to ₹2,438 crore in the fourth quarter of the 2024-25 fiscal year (Q4 FY25).

The NBFC's assets under management (AUM) climbed 28% YoY to ₹2.52 lakh crore in the March FY26 quarter, as against ₹1.97 lakh crore in the year-ago period.

Its annualised operating expense on average net loan book was stable at 2.3% during the reporting quarter, in comparison with 2.3% in Q4 FY25.

Final dividend

The board of Tata Capital recommended a final dividend of ₹0.57 per equity share with a face value of ₹10 each, for the financial year ended March 31, 2026, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM).

"The said dividend will be paid after it is approved by the shareholders at the AGM," it added.

What the management said

Commenting on the earnings, Rajiv Sabharwal, Managing Director & CEO, Tata Capital, said: "We delivered a strong close to FY26, with sustained momentum and healthy growth across our businesses. Excluding Motor Finance, AUM grew 28% year-on-year to ₹2,51,885 crore, while PAT increased 51% year-on-year to ₹1,459 crore in Q4FY26, reflecting the strength of our underlying franchises."

He stated that, including Motor Finance, the company's performance was in line with stated guidance, with AUM growth of 20% year-on-year and PAT growth of 43% to ₹1,502 crore. Furthermore, asset quality continued to improve across segments, with both slippages and credit costs trending lower.

"The use of artificial intelligence remains a core strategic priority for the organization. This year, our AI-first approach across the lending value chain delivered tangible results: Our portfolio monitoring platform has helped strengthen risk management and reduce our credit cost by ~14bps year-on-year in FY26; Our Voice Hub is being used across sales, service and retention, with voice AI agents now originating 15% of Direct Personal Loan business and carrying out 90% of welcome calls. AI-driven credit assessments now assist underwriting for 80% of our SME portfolio - compressing decision cycles and lifting credit manager productivity by 30%," Sabharwal added.

He noted that Tata Capital's intelligent document processing engine ingested and processed over two crore documents, fundamentally transforming how the company originates, verifies, and conducts quality-control at scale across its credit and operations functions. "These developments have helped reduce our cost-income ratio by ~335bps year-on-year in FY26."

"From a macro standpoint, while we remain vigilant amid evolving geopolitical developments, we are confident in the resilience of India's economic fundamentals. A steady policy stance and comfortable systemic liquidity continue to provide a supportive environment for credit growth, positioning us well to execute our strategy with discipline and focus," Sabharwal further said.