Tata Capital , a leading non-banking financial company (NBFC), has announced its financial results for the second quarter of fiscal year 2026, showcasing robust growth across key metrics.

Strong Financial Performance

Tata Capital reported a consolidated profit after tax (PAT) of ₹1,128.00 crore for Q2 FY26, marking a 33% year-on-year increase, excluding non-recurring income. This growth was primarily driven by a significant expansion in the company's assets under management (AUM) and improved operational efficiency.

The company's AUM grew by 22% year-on-year to ₹2,15,574.00 crore as of September 30, 2025, excluding the Motor Finance business. This substantial growth in AUM reflects Tata Capital's strong market position and its ability to capitalize on the growing demand for financial services in India.

Revenue and Profitability Metrics

Tata Capital's net total income for Q2 FY26 stood at ₹3,330.00 crore, representing a robust 28% increase compared to the same quarter last year. This growth was supported by the company's diverse portfolio and improved operational performance.

The company's profitability metrics also showed improvement:

• Annualized credit cost improved to 1.10% from 1.40% in the previous quarter, representing a 30 basis points sequential decline.
• Cost to income ratio improved to 36.60% from 40.10% in the prior year.

Segment Performance and Acquisitions

Tata Capital Housing Finance Limited (TCHFL), a material subsidiary, continued its strong performance with a 30% year-on-year growth in AUM and a 28% increase in PAT.

The company completed the acquisition of its Motor Finance business on May 8, 2025. Tata Capital expects to return this segment to profitability by Q4FY26.

Credit Ratings

Tata Capital maintains AAA credit ratings from CRISIL, ICRA, CARE, and India Ratings. Additionally, S&P Global Ratings has upgraded the company's long-term rating to BBB/Stable, further solidifying its financial standing.

Management Commentary

Rajiv Sabharwal, Managing Director & CEO of Tata Capital, commented on the results: "Q2FY26 was a strong quarter marked by broad-based momentum. Excluding Motor Finance, AUM grew 22% year-on-year, driven by sustained growth across all segments and PAT rose 33% to ₹1,128.00 crore, reflecting the strength of our diversified and well-managed portfolio."

He added, "Credit quality remains robust across categories, resulting in a 30bps drop in annualized credit cost in Q2FY26 over Q1FY26. Further, we continue to leverage our digital and GenAI capabilities for improving customer experience and operating efficiency."

Future Outlook

Looking ahead, Tata Capital remains optimistic about its growth prospects. The company plans to leverage its digital capabilities and diverse product portfolio to capitalize on market opportunities. With its strong financial position, robust asset quality, and strategic initiatives, including the integration of the Motor Finance business, Tata Capital appears well-positioned to maintain its growth trajectory and deliver value to its stakeholders in the evolving financial services landscape.

Tata Capital Ltd. , the financial services arm of the Tata Group, is set to announce its second quarter financial results on October 28, marking a significant milestone as its first earnings report since going public. The company's Board of Directors will convene to approve the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30.

Recent IPO Performance

Tata Capital made its stock market debut on October 13, with shares opening at ₹330.00, representing a modest 1.2% premium to its IPO price of ₹326.00. The company's initial public offering (IPO) raised ₹15,512.00 crore and was nearly two times oversubscribed, indicating strong investor interest.

Previous Financial Performance

In the first quarter of the current fiscal year, Tata Capital demonstrated solid financial performance:

Upcoming Earnings Call

An earnings conference call is scheduled for 5 p.m. on October 28, featuring senior management including:

• Rajiv Sabharwal, MD & CEO
• Rakesh Bhatia, CFO

This call will provide an opportunity for investors and analysts to gain deeper insights into the company's performance and future outlook.

The upcoming financial results will be closely watched by investors and market analysts, as they will offer the first comprehensive view of Tata Capital's performance as a publicly traded company. These results may provide valuable insights into the company's growth trajectory and its ability to leverage its recent public listing for further expansion in the competitive financial services sector.