Highlights

• Tata Capital’s assets under management (AUM) rose 22% YoY to ₹2,15,574 crore for Q2FY26 (excluding Motor Finance).
• Profit after tax (PAT) excluding non-recurring income grew 33% YoY to ₹1,128 crore in Q2FY26.
• Tata Capital Housing Finance recorded 30% YoY growth in AUM to ₹75,636 crore with a PAT of ₹440 crore.

Tata Capital (NSE:TATACAP) released its unaudited standalone and consolidated results for the quarter and half-year ended 30 September 2025. Excluding Motor Finance, the company reported assets under management of ₹2,15,574 crore, up 22% from ₹1,76,637 crore in Q2FY25. Net total income increased 28% YoY to ₹3,330 crore from ₹2,599 crore during the same period.

The annualized operating expense on the average net loan book improved slightly to 2.3% from 2.4%, while the cost-to-income ratio reduced to 36.6% from 40.1% in Q2FY25. Annualized credit cost decreased to 1.1% compared with 1.4% in Q1FY26. PAT, excluding non-recurring income, grew 33% YoY to ₹1,128 crore, while including such income, PAT increased 17% YoY. Annualized return on equity (ROE) was 14.9% compared with 13.7% a year earlier. Gross stage 3 and net stage 3 non-performing assets (NPAs) stood at 1.6% and 0.6%, respectively, with a provision coverage ratio of 64%.

Consolidated Performance – Q2FY26 Including Motor Finance
Including Motor Finance, which accounts for approximately 10% of the gross loan book, AUM increased 3% QoQ to ₹2,43,896 crore from ₹2,37,508 crore. Net total income grew 4% QoQ to ₹3,774 crore, while PAT rose 11% QoQ to ₹1,097 crore. Retail and SME lending comprised about 88% of the gross loan book, with retail unsecured loans forming 11.6%.

Annualized credit cost stood at 1.3%, and the cost-to-income ratio was 39.7%. Annualized ROA and ROE were 1.9% and 12.9%, respectively. Gross and net stage 3 assets were 2.2% and 1.1%, while the provision coverage ratio was 52.8%. Total equity as of September 2025 was ₹35,081 crore, rising to ₹41,777 crore including the primary portion of the IPO. Capital adequacy ratio was 17.3%, increasing to 21.5% post-IPO. The company maintained a credit rating of AAA with stable outlook from CRISIL, ICRA, CARE, and India Ratings, while S&P Global Ratings upgraded its long-term rating to BBB/Stable.

Tata Capital Housing Finance – Q2FY26 Performance
Tata Capital’s wholly-owned housing finance subsidiary, TCHFL, reported AUM growth of 30% YoY to ₹75,636 crore. Net total income rose 37% YoY to ₹899 crore, with profit after tax at ₹440 crore, marking a 28% increase. Cost-to-income ratio improved to 32.9%, and credit costs remained low at 0.1%. Gross and net stage 3 assets stood at 0.8% and 0.3%, with a provision coverage ratio of 55.6%. Capital adequacy ratio was reported at 17.5%.

Tata Capital continues to expand its pan-India presence through 1,479 branches across 27 states and union territories, focusing on improving operational efficiency and business metrics across retail, SME, and motor finance segments.

TATACAP shares were trading at ₹327 per share at the time of writing on 29 October 2025.

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