Founded in 2007, Tata Capital is a wholly-owned subsidiary of Tata Sons, offering a wide range of financial services including retail, commercial, and infrastructure financing. Over the last few years, the company has transformed from a conservative NBFC into a diversified and tech-driven lending institution under the leadership of Rajiv Sabharwal.

This transition has been supported by steady expansion across consumer finance, housing loans, SME credit, and infrastructure lending — all while maintaining strong asset quality and a prudent risk management framework.

Under Sabharwal’s leadership, Tata Capital has successfully navigated challenges like liquidity crises, changing regulatory norms, and the pandemic-induced slowdown. His emphasis on digital lending platforms, customer segmentation, and disciplined underwriting has kept the company’s credit cost below 1% — excluding merger effects — for several consecutive years.

With a sharp focus on retail and SME segments, the company’s loan book has been expanding at a healthy pace. Internal metrics indicate that asset quality remains robust, with gross NPAs among the lowest in its peer group.

Management commentary suggests that Tata Capital is entering a period of strong operational momentum. Disbursements in consumer finance, housing, and personal loans are expected to pick up sharply during the festive season, supported by robust demand and improved liquidity conditions.

Additionally, the integration of Tata Motors Finance is anticipated to unlock scale benefits, boosting operating efficiency and profitability over the next few quarters.

Tata Capital’s consistent record of keeping credit costs below 1% highlights its conservative risk culture and robust monitoring systems. Even amid rising interest rate cycles and tight liquidity, the firm has managed to maintain stable spreads and minimize provisioning shocks.

This financial prudence, coupled with diversified funding sources, positions Tata Capital among India’s most resilient NBFCs — a quality that investors and analysts alike continue to value highly.

The NBFC sector as a whole is showing improved resilience with lower delinquency ratios, steady demand from retail borrowers, and increasing use of technology in loan origination. While large players like Bajaj Finance and HDFC have set benchmarks in asset quality, Tata Capital’s trajectory remains particularly impressive given its relatively shorter operating history.

Moreover, Sabharwal’s guidance that “the worst of credit costs is behind us” indicates confidence in asset quality normalization and profitability rebound — a trend likely to reflect strongly in Q3 and Q4 numbers.

Going forward, Tata Capital’s focus will remain on profitable growth, digital transformation, and operational leverage. The anticipated moderation in credit costs and potential rating upgrades could further improve its access to capital markets. Given Tata Group’s strong brand equity and capital discipline, analysts expect Tata Capital to remain a key player in India’s evolving financial services landscape.

The company’s clear visibility on earnings and its strong leadership bench suggest continued outperformance over the medium term. Investors with a long-term perspective can look forward to stable returns as the company scales its retail footprint while preserving balance sheet strength.