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, 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.