TATA Capital Limited: Path to 2.5%+ RoA reaffirmed; asset quality resilient, growth guidance intact

Research evidence excerpt

TATA Capital Limited: Path to 2.5%+ RoA reaffirmed; asset quality resilient, growth guidance intact

J P M O R G A N Asia Pacific Equity Research

19 June 2026

TATA Capital Limited Overweight

TATC.NS, TATACAP IN

Path to 2.5%+ RoA reaffirmed; asset quality Price (18 Jun 26):Rs345.45

resilient, growth guidance intact Price Target (Sep-27):Rs380.00

We met up with the senior management team of Tata Capital (TCAP) for a India Financials

ACdiscussion on the strategic priorities and outlook. Three key takeaways: i) Asset Anuj Singla

quality trends remain strong with bounce rates and collection efficiency trends (91-22) 6157-3590

improving sequentially in a seasonally weak 1Q with no impact from the Mid-East anuj.singla@jpmchase.com

conflict; ii) FY27 growth guidance intact at 23-25%, even after taking a prudent J.P.Tower,MorganSantacruz(E),India PrivateMumbaiLimited,- 400098,J.P. MorganSEBI

pause in CV, CE, and select SME segments with higher oil and supply-chain Registration: INH000001873, (91-22) 6157-3000.

sensitivity; and iii) NIMs: While elevated funding costs since Mar’26 post Harsh Wardhan Modi

challenges, TCAP aims for NIM stability in the near term with expansion over the (65) 6882-2450

medium term via tighter pricing and a richer loan mix, with some visibility likely harsh.w.modi@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/

from 2QFY27. Re-rating catalysts: a visible NIM inflection, credit costs trending J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

<1%, and growth acceleration. Maintain OW. Morgan Broking (Hong Kong) Limited

Shivansh Puri, CFA

• 2.5%+ RoA remains a key strategic priority: TCAP has outlined a clear (91-22) 6157-5077

bridge to 2.5%+ RoA that relies on three key levers: ~20bp benefit from lower shivansh.puri@jpmchase.com