Tata Capital Posts 31% Jump In Q4 Profit To Rs 1,000 Crore Ahead Of IPO Filing

IPO-bound Tata Capital on Wednesday reported a 31 per cent year-on-year increase in its consolidated profit after tax (PAT) to Rs 1,000 crore for the quarter ended March 2025, up from Rs 765 crore in the same period last year.

The Tata Group’s financial services arm also saw a sharp 50 per cent rise in operating revenue, which climbed to Rs 7,478 crore during the January–March quarter of FY25, compared to Rs 4,998 crore a year earlier, the company said in a regulatory filing.

For the full financial year 2024–25, Tata Capital reported a PAT of Rs 3,655 crore, up from Rs 3,327 crore in FY24. Annual revenue surged to Rs 28,313 crore, marking a significant jump from Rs 18,175 crore in the previous fiscal.

IPO On The Horizon

Last month, Tata Capital submitted draft papers for an initial public offering (IPO) to the markets regulator SEBI via the confidential pre-filing route. According to sources cited by PTI, the IPO could raise up to $2 billion, valuing the company at approximately $11 billion. The public offering will include a fresh issue of shares as well as an offer for sale (OFS) by existing shareholders. The company has already secured board approval for the IPO.

Tata Sons, the holding company of Tata Capital, currently owns 92.83 per cent of the firm.

If the IPO proceeds as planned, it is expected to be the largest in India’s financial services sector and the second major listing from the Tata Group in recent years, following the successful debut of Tata Technologies in November 2023.

Also Read: India Emerges As Most Preferred Equity Market In Asia Pacific: BofA Survey

Compliance With RBI Norms

The IPO plan is part of Tata Capital’s move to comply with the Reserve Bank of India (RBI) regulations. The company was classified as an upper-layer non-banking financial company (NBFC) by the RBI in September 2022, which mandates such entities to list on the stock exchange within three years of their designation.

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