Tata Capital Limited announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, showcasing strong operational performance across key metrics. The Board of Directors approved these results at their meeting held on January 19, 2026.

Strong Q3FY26 Financial Performance

The company delivered impressive results for Q3FY26 with significant growth across major financial parameters:

The revenue growth was primarily driven by higher interest income, which increased by 6.5% year-on-year to ₹5,219.64 crore. Fees and commission income also showed robust growth, rising to ₹361.61 crore from ₹286.27 crore in the corresponding quarter of the previous year.

Consolidated Results Outperform Standalone

On a consolidated basis, the company demonstrated even stronger performance with significant growth across key metrics:

The consolidated results reflect the strong performance of the entire group including subsidiaries and associates, with consolidated revenue reaching ₹7,975.00 crore compared to ₹7,103.60 crore in the previous year.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company maintained its growth trajectory:

Improved Capital Structure and Key Ratios

The company demonstrated significant improvement in its capital structure metrics. The debt-equity ratio improved substantially to 3.95 times in Q3FY26 from 5.40 times in Q3FY25, indicating enhanced financial stability. Net profit margin remained healthy at 13.66% for the quarter.

Key operational metrics showed mixed trends:

• Gross non-performing assets increased to 2.90% from 2.29% year-on-year
• Net non-performing assets rose to 1.37% from 0.95%
• Provision coverage ratio decreased to 53.56% from 59.24%
• Capital adequacy ratio improved significantly to 20.26% from 16.26%

Segment-wise Performance Analysis

The company's diversified business model showed strength across segments:

The financing activity segment, which forms the core business, continued to show steady growth. The 'Others' segment, comprising advisory services, wealth management, and distribution of financial products, demonstrated exceptional growth of 51.6%.

IPO Proceeds Utilization and Corporate Developments

Following its successful Initial Public Offer in October 2025, the company raised ₹6,846 crore through fresh issue of equity shares. The IPO proceeds utilization showed:

The company also reported exceptional items of ₹36.15 crore in Q3FY26, primarily related to the impact of new Labour Codes notified by the Government of India in November 2025.

Tata Capital Limited announced strong financial results for Q3FY26, demonstrating sustained business momentum across its diversified lending portfolio. The company reported consolidated assets under management (AUM) of ₹2,60,698 crores, representing a 7% quarter-on-quarter growth, while profit after tax (PAT) reached ₹1,290 crores, marking an 18% increase from the previous quarter.

Consolidated Performance Including Motor Finance

The company's overall performance for Q3FY26 showed robust growth across key financial metrics. Net total income grew 7% quarter-on-quarter to ₹4,051 crores, while the cost-to-income ratio improved to 38.4% from 39.7% in Q2FY26.

A significant milestone was achieved as the Motor Finance business reached PAT breakeven during Q3FY26, excluding the impact of new labour codes. This segment, which constitutes approximately 10% of net AUM, reflects the company's focused approach on improving business metrics before accelerating growth.

Performance Excluding Motor Finance Business

Excluding the Motor Finance segment, Tata Capital demonstrated exceptional year-on-year growth. AUM expanded 26% to ₹2,34,114 crores compared to ₹1,86,404 crores in Q3FY25, while PAT excluding non-recurring items surged 39% to ₹1,285 crores from ₹922 crores in the corresponding previous quarter.

The company maintained strong operational efficiency with annualized operating expense on average net loan book improving to 2.3% in Q3FY26 from 2.4% in Q3FY25. Credit costs remained controlled at 1.0% compared to 1.1% in Q2FY26.

Credit Quality and Risk Management

Tata Capital maintained robust credit quality indicators across its portfolio. The company reported gross stage 3 assets at 2.2% and net stage 3 at 1.0% as of December 31, 2025. The provision coverage ratio stood at 53.6%, demonstrating prudent risk management practices.

The company's retail and SME segments constitute approximately 87% of net AUM, with retail unsecured forming 10.4% of net AUM. Management noted that unsecured retail disbursements, which were moderated earlier as a prudent risk measure, have seen a gradual uptick with slippages coming down.

Housing Finance Subsidiary Performance

Tata Capital Housing Finance Limited (TCHFL), the company's wholly-owned material subsidiary, delivered strong results for Q3FY26. The housing finance company achieved 30% year-on-year AUM growth to ₹81,585 crores and 25% YoY PAT growth to ₹464 crores excluding non-recurring items.

TCHFL maintained excellent asset quality with gross stage 3 at 0.8% and net stage 3 at 0.4%, while the provision coverage ratio stood at 54.2%. The subsidiary's capital adequacy ratio was 16.9% as of December 31, 2025.

Management Commentary and Outlook

Managing Director and CEO Rajiv Sabharwal highlighted the company's sustained business momentum with broad-based growth across products. He emphasized that the distribution network and strategic focus on digital and GenAI capabilities continue to drive operating efficiencies. The company operates through a pan-India network of 1,505 branches across 27 states and union territories, positioning it well to leverage India's robust growth outlook supported by favorable demographics and strong macroeconomic fundamentals.