Tata Capital shares slip 3% after stock rallies 17% in one week to lifetime high. What’s ahead?

The shares of the non banking financial company (NBFC) dropped to Rs 357.7 apiece on the NSE on Monday morning. The stock jumped 21% in one month to hit a fresh all-time high of Rs 379.95 apiece on Friday.

Shares of Tata Capital made a muted debut on the stock exchanges in October last year, listing at a 1.2% premium at Rs 330 on both the BSE and NSE. This came after the Rs 15,512-crore IPO was fully subscribed 1.95 times, led by Qualified Institutional Buyers (QIBs).

The company’s shares have been more or less range-bound since then, dropping over 10% to hit a 52-week low of Rs 296 apiece earlier this month. The stock then gained 28% to hit a 52-week high of Rs 379.95 apiece on Friday.

Also Read | Tata Capital shares make weak debut, list at just 1% premium after 2025’s biggest IPO

JM Financial last week upgraded its rating on the stock to ‘Buy’ from ‘Add’, noting that the company’s management remains confident in delivering 23–25% growth in FY25–28E, supported by continued retailisation, branch expansion and deeper product penetration. “Tata Motors Finance’s integration remains on track, and it is expected to become a meaningful profitability contributor over the medium term with ~2% RoA expected by FY28,” it added.

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The domestic brokerage noted the post IPO correction in the stock, adding, “Given upcoming visible levers like high yield book expansion (affordable housing/PL etc.), improving profitability trajectory in motor finance while maintaining high growth reinforces our confidence in healthy earnings compounding in the medium term.”

JM Financial also increased its target price to Rs 400 apiece from Rs 380 apiece, with the latest target price implying a 9% upside potential from the stock’s previous closing price of Rs 366.80 apiece on NSE.Also Read | Tata Capital targets 23–25% loan growth through FY28, bets on GenAI and falling credit costs to boost returns

Tata Capital in April reported a 43% year-on-year (YoY) surge in consolidated net profit to Rs 1,502 crore for the fourth quarter of the financial year 2026, along with a final dividend of Rs 0.57 per share for its shareholders.

While net profit surged 43% YoY, revenue from operations grew 9% YoY to Rs 8,160 crore during the quarter under review. Its net interest income (NII) rose 28% YoY to Rs 3,127 crore, and net assets under management (AUM) grew 28% YoY to nearly Rs 2.52 lakh crore at the end of the quarter.

Tata Capital’s annualised operating expense on the average net loan book was stable at 2.3%, while the cost-to-income ratio improved to 36.1%. Annualised credit cost slightly reduced to 0.8%, while annualised ROA and annualised ROE rose to 2.5% and 14.6%, respectively, during the fourth quarter of FY26. However, these numbers exclude the firm’s motor finance business.

Also Read | Should you buy, sell or hold Tata Capital shares after Q4 net profit surges 43%

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