Tata Capital Limited reported robust consolidated financial results for the quarter ended December 31, 2025, demonstrating strong sequential growth momentum. The company announced its unaudited standalone and consolidated financial results, with the Board of Directors approving these results at their meeting held on January 19, 2026.

Outstanding Quarterly Performance

The company delivered exceptional sequential growth in Q3FY26, showcasing significant improvement in profitability and operational metrics:

The remarkable 44% quarter-on-quarter surge in net interest income reflects healthy lending growth and improving asset yields across the company's diversified portfolio. This strong performance underscores the company's ability to capitalize on robust demand for both secured and unsecured credit products.

Year-on-Year Growth Trajectory

Comparing with the previous year, Tata Capital maintained its growth momentum with consistent performance improvements:

Business Segment Performance and Strategic Developments

Tata Capital's assets under management increased steadily, supported by broad-based growth across retail, SME, and housing finance segments. The Motor Finance business achieved a significant milestone by reaching PAT breakeven during the quarter, following its integration in May 2025.

The management highlighted that unsecured retail disbursements, which had been moderated previously as a precautionary measure, have started to pick up gradually. This strategic approach supports revenue growth while maintaining asset quality standards. Credit quality remained healthy, with early indicators showing stable portfolio performance across all major segments.

Housing Finance Subsidiary Excellence

Tata Capital Housing Finance Limited (TCHFL), the company's wholly owned housing finance subsidiary, contributed significantly to overall growth:

Technology and Operational Enhancements

The company continued strengthening its distribution network and digital capabilities, leveraging technology and GenAI solutions to enhance efficiency and customer experience. This technological advancement supports the company's growth strategy while improving operational efficiency across all business segments.

Market Performance and Outlook

Shares of Tata Capital were marginally down on the NSE, closing at ₹359.25, down ₹0.10 or 0.03% as of January 19, 2026. The company's strong financial performance, combined with its diversified business model and technological investments, positions it well for continued growth in the financial services sector.

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

Standalone Financial Performance

The company delivered robust standalone results for Q3FY26, with net profit increasing 9.9% year-on-year to ₹789.86 crores compared to ₹718.76 crores in Q3FY25. Total income grew 7.6% to ₹5,786.08 crores from ₹5,375.49 crores in the corresponding quarter of the previous year.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company maintained its growth trajectory with net profit of ₹2,018.55 crores compared to ₹1,939.49 crores in the previous year, marking a 4.1% increase. Total income for the period reached ₹16,978.46 crores against ₹16,244.45 crores in the corresponding period of FY25.

Revenue Composition and Operational Metrics

Interest income remained the primary revenue driver, contributing ₹5,219.64 crores in Q3FY26 compared to ₹4,901.40 crores in Q3FY25. Fees and commission income increased to ₹361.61 crores from ₹286.27 crores, while rental income grew significantly to ₹125.33 crores from ₹76.87 crores in the previous year quarter.

The company's expense management showed mixed results, with total expenses rising to ₹4,688.23 crores in Q3FY26 from ₹4,420.81 crores in Q3FY25. Finance costs decreased to ₹2,678.12 crores from ₹2,765.32 crores, while impairment on financial instruments increased to ₹753.48 crores from ₹548.91 crores.

Balance Sheet Strength and Key Ratios

The company's financial position strengthened considerably, with net worth increasing to ₹37,359.37 crores as of December 31, 2025, from ₹26,022.25 crores in the previous year. The debt-equity ratio improved significantly to 3.95 times from 5.40 times, indicating better capital structure management.

IPO Impact and Capital Augmentation

The company successfully completed its Initial Public Offering in October 2025, raising ₹6,846 crores through fresh issue of equity shares. The IPO proceeds were primarily utilized for augmenting Tier-I capital base, with ₹6,696.60 crores deployed for this purpose during the quarter. The company's equity shares were listed on NSE and BSE on October 13, 2025.

Exceptional Items and Regulatory Changes

The company reported exceptional charges of ₹36.15 crores in Q3FY26 related to the implementation of new Labour Codes notified by the Government of India in November 2025. These codes consolidate 29 existing labour laws and resulted in incremental compliance costs for the company.

Consolidated Results Overview

On a consolidated basis, the company reported net profit of ₹1,264.74 crores for Q3FY26 compared to ₹1,050.37 crores in Q3FY25, representing a 20.4% increase. Consolidated total income grew to ₹7,978.85 crores from ₹7,111.18 crores in the previous year quarter. The consolidated net worth stood at ₹43,517.82 crores as of December 31, 2025.