Tata Capital Q2FY26 Profit Rises 33% YoY to ₹1,128 Crore; AUM Grows 22% to ₹2.15 Lakh Crore

Mumbai, October 28, 2025 – Tata Capital Limited (NSE: TATACAP, BSE: 544574) reported a 33% year-on-year (YoY) growth in profit after tax (PAT) at ₹1,128 crore for the quarter ended September 30, 2025 (Q2FY26). This compares with ₹849 crore profit in the corresponding quarter last year. The company logged its highest-ever PAT quarter, driven by consistent growth in its well-diversified lending book and declining credit costs.

Strong AUM and Income Growth

Assets under management (AUM) increased 22% YoY to ₹2,15,574 crore from ₹1,76,637 crore, supported by strong demand in the retail, corporate, and housing finance businesses. Net total income grew 28% to ₹3,330 crore, and pre-provisioning operating profit stood at ₹2,110 crore, up 36% YoY. Profit before tax went up by 28% at ₹1,545 crore, reflecting steady operational efficiency and portfolio strength.

Improved Asset Quality and Efficiency

Tata Capital maintained sound asset quality levels in the form of 1.6% gross stage 3 ratio and 0.6% net stage 3 ratio. The provision coverage ratio remained strong at 64%. The company’s cost-to-income ratio decreased to 36.6% from 40.1% in Q2FY25, while credit cost declined to 1.1% from 1.4% during the previous quarter, indicating efficient risk management and cost control.

Consolidated Performance Including Motor Finance

With the acquisition of Tata Motors Finance Limited in May 2025, consolidated AUM grew 3% quarter-on-quarter to ₹2,43,896 crore. Consolidated PAT grew 11% quarter-on-quarter at ₹1,097 crore, while net total income was up 4% at ₹3,774 crore. Capital adequacy ratio of the company stood at 17.3%, improving to 21.5% after including IPO proceeds.

Stock Performance

Tata Capital share closed at ₹330.60 on October 28, 2025, up ₹1.70 (0.52%) for the day. It opened at ₹328.90, touched a high of ₹333.70, and a low of ₹327.60 during the day. The market capitalization of the company was ₹1.41 lakh crore with a P/E ratio of 36.99.

Subsidiary Highlights – Tata Capital Housing Finance Ltd (TCHFL)

TCHFL, the housing finance business, delivered a good quarter with AUM growing 30% YoY to ₹75,636 crore and PAT growing 28% to ₹440 crore. Credit costs were extremely low at 0.1%, with gross stage 3 assets at a healthy 0.8%, owing to good underwriting and digital process efficiencies.

Management Commentary

Managing Director & CEO Rajiv Sabharwal stated that Q2FY26 showed “broad-based momentum” across business segments. AUM grew 22% and PAT 33% adjusting for Motor Finance, with the credit quality remaining strong. He pointed to the company’s focus on leveraging digital and GenAI-driven innovations to grow efficiency and enhance customer experience. Sabharwal further stated that integration of the Motor Finance business is in good progress, with expected profitability by Q4FY26.

REF: https://nsearchives.nseindia.com/corporate/TATACAPITAL_28102025155555_TCLResultsSep2025.pdf

https://nsearchives.nseindia.com/corporate/TATACAPITAL_28102025162446_signedpressrelease.pdf

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