CARE

ICRA

The Reserve Bank of India (RBI) on Thursday released the list of non-banking finance companies (NBFCs) in the upper layer segment for the year 2024-25, which included Tata Sons Private Ltd, Bajaj Finance Ltd, LIC Housing Finance Ltd and Aditya Birla Finance Ltd. Tata Sons continues to be in the NBFC upper layer (UL) list despite its proposal to deregister as a non-banking finance company, the RBI said. Last year, Tata Sons had reportedly submitted its application to surrender its core investment company registration to avoid the mandatory listing within three years after being identified as NBFC-UL. Tata Sons was first time included in the NBFC-UL in September 2022, which means that the company will have to list by September this year.

RBI releases NBFC upper layer list for year 2024-25

The company is likely to file its updated Draft Red Herring Prospectus (DRHP). Tata Capital plans to raise around $2 billion through the IPO, which is expected to launch in the first half of September this year. The IPO is being driven by a regulatory mandate. In September 2022, the Reserve Bank of India classified Tata Capital as an upper-layer systemically important NBFC, requiring it to go public within three years. That deadline expires this September. If it hits this valuation, Tata Capital will become India’s fourth-largest non-bank lender, behind Bajaj Finance, Bajaj Finserv and Jio Financial Services. The revised valuation reflects upbeat investor sentiment, supported by Tata Capital’s recent rights issue and a strong run of IPOs in the financial services space.

Tata Capital targets $20 billion valuation in upcoming IPO

Tata Capital Ltd. will announce its Q2 financial results on October 28, marking its first earnings report since going public. The company's Board will review unaudited standalone and consolidated results for the quarter and half-year ended September 30. Tata Capital's IPO in October raised ₹15,512.00 crore and was nearly two times oversubscribed. In Q1 FY2024, the company reported standalone revenue of ₹5574.00 crore (up 3% YoY) and net profit of ₹568.00 crore (up 11% YoY). An earnings call with senior management is scheduled for 5 p.m. on the same day.

Tata Capital to Release First Post-IPO Quarterly Results

A Rs. 1,400 crore TSL infusion raised TCL’s net worth to Rs. 32,563 crore, though high loan growth increased gearing to 6.5x. Solvency remains comfortable at 5.4%. To fund further expansion, TCL plans an IPO this fiscal, with continued parental support expected.


The issuer has made timely interest payments

Mr Rajiv Sabharwal, MD & CEO

As a 92.8% Tata Sons (TSL) subsidiary, TCL enjoys strong financial flexibility, management support, and competitive funding. TSL has demonstrated its commitment through over Rs. 7,500 crore in capital infusions since FY2019, alongside a recent Rs. 1,504 crore rights issue. ICRA expects continued parental support and majority ownership by the Tata Group.


The combined lending book (TCL+TCHFL) grew 41% to Rs. 2,21,950 crore in FY2025, fueled by retail/corporate growth and the TMFL amalgamation. The retail share rose marginally to 63%, with the portfolio remaining well-diversified across home loans, auto finance, LAP, corporate loans, and builder finance.


Consolidated GS3 and NS3 rose to 1.9% and 0.8% in FY2025, driven by the TMFL amalgamation; underlying asset quality remained stable. Provision coverage reached 59%, down from 74% in FY2024. ICRA expects asset quality and provision buffers to remain comfortable.



In FY2025, TCL’s NIM rose to 5.0% as yields outpaced funding costs. However, RoMA dipped to 1.7% (from 2.1%) due to branch expansion costs (2.6%) and higher credit costs (1.3%) from the acquired vehicle book. Growth in high-yield retail will be key to future profitability.




Rating agency	Rating	Needle position
CARE	AA + /Stable	near High Safety
ICRA	AA + /Stable	near High Safety

Security Name: 9.80% Tata Capital Limited (P) Call : 23 Mar 2026

ISIN: INE306N08144

YOUR EARNING

YOUR RISK

Repayment Priority

Security with Collateral?

LIQUIDITY INDICATOR #

ISSUER

Recent News

Related Videos

STEPS TO BUY THIS BOND

Information required for KYC

How to exit the investment?