Tata Capital Limited has announced its highest-ever quarterly profit after tax, reporting ₹1,128 crore for Q2FY26, reflecting a 33 percent increase year-on-year. This growth was attributed to strong performance in its lending segments, with assets under management rising by 22 percent to ₹2,15,574 crore, excluding the Motor Finance business acquired in May.
Rajiv Sabharwal, Managing Director and CEO, stated that credit quality remains strong, with annualized credit costs decreasing by 30 basis points from the previous quarter to 1.1 percent in Q2FY26. He emphasized the company’s commitment to enhancing customer experience and operational efficiency through digital and GenAI capabilities, noting that a recent reduction in GST is anticipated to stimulate consumption in the latter half of FY26.
The firm’s net interest income increased by 23 percent to ₹2,637 crore, while fee income experienced a significant surge of 59 percent, reaching ₹588 crore. Return on equity improved from 13.7 percent to 14.9 percent year-on-year. When including the Motor Finance division, the consolidated profit after tax stood at ₹1,097 crore, with total assets under management at ₹2,43,896 crore. Tata Capital is focused on revitalizing its Motor Finance business with the aim of achieving profitability by Q4FY26.
On the stock market, Tata Capital shares closed at ₹330.60 on Tuesday, up 0.52 percent, following its initial public offering debut on October 13 at ₹330, just above its IPO price of ₹326. Nitin Jain, Senior Research Analyst at Bonanza, noted that the stock has been trading in a narrow range of ₹319-337 since its listing, reflecting “rich valuations” and cautious market sentiment. He added that the stock’s potential for re-rating will depend on consistent financial performance.
Published on October 28, 2025.
