Street View: Analysts bullish on India's Tata Capital after strong Q3; stock hits record high

Tata Capital

20/01/2026 07:16

** Tata Capital on Mon posted 20.4% rise in Q3 consol profit to 12.57 billion rupees ($138.1 million)

** Shares rose as much as 2% to hit record high on Tues; stock reversed course and was last down 0.4% at 358.9 rupees

RECORD Q3 AUM ADD; ASSET QUALITY IMPROVES; FY28 ON TRACK

** JM Financial ("Add"; PT: 385 rupees) says company recorded its highest-ever quarterly AUM addition of 168 billion rupees in Q3, largely driven by festive-led demand and GST rate cuts; expects average AUM growth of ~21-22% over FY27E/28E

** Ambit Capital ("Buy"; PT: 420 rupees) says management commentary indicates further improvement in asset quality in unsecured loans as well as CV finance; expects credit costs to decline from 1.3% in FY26 to 1.0-1.1% in FY27/28E,

** Emkay Global ("Add"; increases PT to 380 rupees) notes co continues to recalibrate its asset mix toward higher-yield and granular segments, such as unsecured retail, SME, affordable housing, LAP, and used CVs, while remaining disciplined on risk and margins; says further reinforces expectation that co will achieve FY26 guidance and remain on track for reaching FY28 profitability targets

($1 = 91.0213 Indian rupees)

(Reporting by Mridula Kumar in Bengaluru)

((mridula.kumar@thomsonreuters.com))