Tata Capital Ltd IPO

The company's Gross Stage 3 Loans comprised 2.1%, 1.7%, 1.9%, 1.5% and 1.7% of its Total Gross Loans as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Non-payment or default by its customers may adversely affect the company's business, results of operations, cash flows and financial condition.

The company's provision coverage ratio was 53.9%, 63.5%, 58.5%, 74.1% and 77.1% as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. The company's inability to provide adequate provisioning coverage for non-performing assets may adversely affect its business, results of operations, cash flows and financial condition.

Unsecured Gross Loans comprised 20.0%, 22.4%, 21.0%, 24.5% and 23.1% of its Total Gross Loans as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Failures to recover such receivables in a timely manner or at all may adversely affect the company's business, results of operations, cash flows and financial condition.

Changes in the company's loan-mix may adversely affect its financial metrics and asset quality, which could adversely affect the company's business, financial condition, results of operations and cash flows.

Secured Gross Loans comprised 80.0%, 77.6%, 79.0%, 75.5% and 76.9% of the company's Total Gross Loans as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. The company is exposed to potential losses in connection with recovery of the value of security or enforcement of collaterals.

Retail Finance comprised 61.3%, 64.2%, 62.3%, 58.9% and 56.7% of Total Gross Loans as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Any adverse developments that reduce demand for loans amongst retail customers and/or increase loan default rates amongst retail customers will adversely affect its business, results of operations and prospects.

Home Loans, Loans Against Property and Developer Finance together amounted to 34.7%, 32.2%, 33.8%, 37.4% and 37.3% of our Total Gross Loans as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. In relation to the company's Home Loans, Loans Against Property and Developer Finance, we have significant exposure to the real estate sector and any negative trends affecting this sector could adversely affect its business and result of operations.

The company's fixed interest rate loans comprised 36.3%, 40.5%, 38.6%, 32.0% and 32.6% of its Total Gross Loans and the company's fixed interest rate borrowings comprised 55.0%, 48.0%, 54.0%, 53.0% and 51.0% of its Total Borrowings as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Any adverse changes in interest rates could impact the company's Average Cost of Borrowings Ratio and adversely impact its Net Interest Margin Ratio, demand for loans and profitability and cause a decrease in the company's Net Interest Income, any of which could adversely affect our business, results of operations, cash flows and financial condition.

Certain issuances of non-convertible debentures by TMFL and some of the company's CRPS issuances have been down sold by successful applicants in the past, leading to the number of holders of such securities exceeding the prescribed limits under the applicable laws. Accordingly, the company may be subject to regulatory action, including penal action, which may adversely affect its business and reputation.

The company Average Cost of Borrowings Ratio was 7.8%, 7.8%, 7.8%, 7.3% and 6.6% for the three months period ended June 30, 2025 and June 30, 2024 and Fiscals 2025, 2024 and 2023, respectively. If the company is unable to secure funding on acceptable terms and at competitive rates when needed, including due to any downgrade in the company's credit ratings, it could have a material adverse effect on its business, results of operations, cash flows and financial condition.