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TCHFL, TCS to ink pact for loans, services worth ₹5,150 cr in FY26

Tata Capital Housing Finance Ltd (TCHFL) plans to ink a pact with group firm Tata Consultancy Services (TCS) to raise funds through debentures, term loans, etc. and avail services for value up to ₹5,150 crore in the current financial year (FY26). In its FY25 annual report, TCFHL said it has proposed to enter into related-party transactions with TCS. As a part of its borrowing programme, TCFHL raises funds through various instruments such as term loans, inter-corporate deposit, and non-convertible debentures (NCDs), etc. On a few occasions, Tata group companies have also participated in the NCD issuance of TCFHL. The company has in the past entered into transactions with TCS, availing information technology (IT)-related services, and purchasing hardware, software, etc., the annual report said. Tata Sons Private Ltd holds 92.86 per cent stake in Tata Capital Ltd (TCL). TCFHL is a wholly owned subsidiary of TCL. Tata Sons held 71.74 per cent stake in TCS as on March 31, 2025. TCFHL, the Tata group's mortgage lending arm, has also proposed to increase the present borrowing limit from ₹75,000 crore to ₹92,000 crore to meet the additional working capital and long-term funding requirements, according to the notice for annual general meeting in the FY25 annual report. During the year under review, the company issued secured redeemable NCDs aggregating ₹8,831 crore. It used a private placement route to raise these amounts from investors. The aggregate debt outstanding as on March 31, 2025 was ₹61,077. The debt-equity ratio on the same day was 7.14 times. Referring to business performance in FY25, the annual report said the company disbursed loans amounting to ₹31,333 crore as against ₹26,341 crore in FY24, representing an increase of 19 per cent year-on-year (Y-o-Y). Its loan portfolio grew by 29 per cent Y-o-Y to ₹66,405 crore as on March 31, 2025 from ₹51,402 crore as on March 31, 2024. Its net interest income increased by 23 per cent Y-o-Y from ₹1,906 crore in FY24 to ₹2,343 crore in FY25. It posted a net profit of ₹1,499 crore in FY25 as against ₹1,148 crore in FY24.