Tata Capital reported a 31% year-on-year (YoY) increase in its consolidated profit after tax (PAT) on Wednesday, reaching Rs 1,000 crore for the three months that ended in March 2025. The initial public offer (IPO)-bound company had posted a profit after tax (PAT) of Rs 765 crore in the year-ago period.

Total revenues from its operations rose by nearly 50% to Rs 7,478 crore in the January-March period of FY25 from Rs 4,998 crore in the year-ago period, Tata Capital mentioned in a regulatory filing to the stock exchange.

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For the financial year 2024-25, Tata Capital reported a PAT of Rs 3,655 crore as compared to Rs 3,327 crore in FY24, and revenues surged to Rs 28,313 crore from Rs 18,175 crore.

Last month, Tata Capital filed its draft papers with the markets regulator, Securities & Exchange Board of India (SEBI), for an initial public offering (IPO) through a confidential pre-filing route. Sources mentioned that the IPO size could be 2 billion dollars, valuing the company at around 11 billion dollars.

The IPO will consist of a fresh issue of equity shares and an offer for sale (OFS) by certain shareholders.

Tata Capital, identified by the Reserve Bank of India (RBI) as an upper-layer non-banking finance company (NBFC), has already secured the board’s approval to proceed with the initial stock sale.

Significantly, Tata Sons, which is the holding company of Tata Capital, owns a 92.83% stake in the company. If the IPO is successful, it will be the largest initial share sale in the country’s financial sector. It will also mark Tata Group’s second public market debut in recent years, following the listing of Tata Technologies in November 2023.

The IPO is part of Tata Capital’s efforts to comply with the Reserve Bank of India’s (RBI’s) listing requirements. As per the RBI mandate, upper-layer NBFCs are required to list on stock exchanges within three years of being designated as such. Tata Capital was categorised as an upper-layer NBFC in September 2022.