Tata Capital shines with a remarkable 31% jump in Q4 profit, reaching ₹1,000 crore, signaling strong financial health. The impressive results come as the company prepares for its highly anticipated IPO, set to be one of the largest in the financial sector.
Tata Capital is celebrating a stellar financial performance, reporting a remarkable 31% year-on-year surge in consolidated profit after tax (PAT) to ₹1,000 crore for the quarter ended March 2025. This significant achievement underscores the company's robust growth trajectory as it gears up for its initial public offering (IPO). The financial services arm of the Tata Group had reported a PAT of ₹765 crore in the corresponding period last year, making this year's performance a standout success.
The company's total revenues from operations also witnessed an impressive upswing, rising nearly 50% to ₹7,478 crore in the January-March period of FY25, compared to ₹4,998 crore in the previous year. For the entire financial year 2024-25, Tata Capital showcased a PAT of ₹3,655 crore, a notable increase from ₹3,327 crore in FY24, with revenues soaring to ₹28,313 crore from ₹18,175 crore.
"These exceptional results reflect our commitment to delivering value and sustainable growth," a company spokesperson stated, highlighting the strategic initiatives and operational efficiencies that have driven Tata Capital's success.
The upcoming IPO is expected to be a landmark event in the financial sector. Tata Capital has already filed draft papers with SEBI for an initial public offering (IPO) through a confidential pre-filing route. Sources indicate the IPO size could reach USD 2 billion, potentially valuing the company at around USD 11 billion. The IPO will consist of a fresh issue of equity shares and an offer for sale (OFS) by certain shareholders.
Tata Capital, recognized by the Reserve Bank of India (RBI) as an upper-layer non-banking finance company (NBFC), has secured board approval to proceed with the share sale. Tata Sons, the holding company, retains a substantial 92.83% stake in Tata Capital.
If the IPO is successful, it will mark the Tata Group's second public market debut in recent years, following the listing of Tata Technologies in November 2023. This move aligns with the RBI's listing requirements for upper-layer NBFCs, reinforcing Tata Capital's position as a leader in the financial services landscape. The strong financial results and the impending IPO signal a bright future for Tata Capital and its stakeholders.
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