Tata Capital, one of India’s leading non-banking financial companies (NBFCs), has announced its audited financial results for the fiscal year ended March 31, 2025. The company reported yet another year of solid financial growth, backed by strong loan book expansion, higher income generation, and strategic cost management.

A) Key Financial Highlights (YoY Performance)

1. Total Income – Tata Capital’s total income in FY25 increased significantly by 55.91%, reaching ₹28,370 crore, up from ₹18,198 crore in FY24. This growth was driven by a surge in interest earned and a rise in other income, reflecting the company’s expanding lending business and diversified revenue streams.

2. Total Expenses – Total expenses in FY25 rose sharply to ₹23,448 crore (comprising Interest Expended, Operating Expenses, and Provisions), an increase of 73.63% from ₹13,506 crore in FY24. The rise reflects increased funding costs, operational scale-up, and proactive provisioning to safeguard asset quality.

B) EBITDA and Margins

1. EBITDA (approximated as Total Income minus Total Expenses) stood at ₹4,922 crore in FY25, compared to ₹4,692 crore in FY24, showing a modest rise of 4.9%. The margin compression was primarily due to higher provisioning and interest expenses.

2. Profit After Tax (PAT) – PAT rose to ₹3,655 crore in FY25, up from ₹3,327 crore in FY24, marking a growth of 9.87%. The steady increase reflects disciplined cost control and strong revenue growth.

3. Earnings Per Share (EPS) – EPS improved to ₹9.72 in FY25 from ₹8.98 in FY24, a growth of 8.23%, indicating consistent shareholder value creation.

C) Asset Quality

1. Gross NPA increased to 2.33% in FY25, up from 1.71% in FY24, reflecting some stress in specific loan segments.

2. Net NPA also rose to 0.98% from 0.38%, but remained at manageable levels due to prudent provisioning.

D) Key Financial Ratios

1. Advances grew from ₹1,57,760 crore in FY24 to ₹2,21,950 crore in FY25, registering an impressive 40.66% growth, indicating robust credit demand.

2. Book Value increased to ₹91.36 in FY25 from ₹66.38 in FY24, up 37.64%, enhancing the intrinsic value per share.

3. P/B Ratio decreased to 10.12 from 15.82, however, still valuation are very stretched. 

4. Return on Equity (ROE) moderated to 10.63% in FY25 from 13.53% in FY24, due to a higher equity base and increased provisioning.

E) Valuation

Tata Capital is currently trading at a price-to-book (P/B) ratio of 11.57x, indicating a steep valuation. The IPO price is expected to be in the range of ₹350–₹400 per share.

F) Strategic Outlook

Tata Capital’s FY25 performance reflects its growing strength as a leading NBFC in India. With expanding credit penetration, digital transformation initiatives, and continued focus on retail and SME lending, the company is well-positioned to sustain its growth momentum.

As the economy continues to formalize and credit demand rises across sectors, Tata Capital’s diversified portfolio, solid capital base, and strong governance framework provide a solid foundation for long-term value creation.