Tata Capital , a leading financial services company, has unveiled ambitious expansion plans aimed at achieving substantial growth across its retail and infrastructure segments. The company is setting its sights on double-digit Assets Under Management (AUM) growth for FY26, with a long-term goal of building a ₹7 lakh crore balance sheet by FY28.

Strategic Focus on Digital and Cross-Sell Synergies

The expansion strategy revolves around strengthening Tata Capital's digital lending, housing finance, and wealth management platforms. By leveraging technology integration and cross-sell synergies, the company aims to drive long-term profitability and enhance its market position.

Q2FY26 Performance Highlights

Tata Capital's recent financial results for Q2FY26 underscore its growth trajectory:

• AUM Growth: The company's Assets Under Management reached ₹2,43,896.00 crore as of September 30, 2025, marking a 3% quarter-on-quarter increase.
• Net Total Income: Grew by 4% quarter-on-quarter to ₹3,774.00 crore in Q2FY26.
• Profit After Tax: Rose by 11% quarter-on-quarter to ₹1,097.00 crore in Q2FY26.
• Return on Assets (ROA): Improved to 1.90% in Q2FY26 from 1.80% in Q1FY26.
• Return on Equity (ROE): Increased to 12.90% in Q2FY26 from 12.50% in Q1FY26.

Diversified Product Portfolio

Tata Capital's growth strategy is supported by its comprehensive product suite, which helps manage risk across economic cycles. The company's gross loan book of ₹2,39,960.00 crore as of September 30, 2025, is well-diversified:

Focus on Digital Transformation

Tata Capital is placing a strong emphasis on digital initiatives to enhance customer experience and operational efficiency:

• 97% of customers are onboarded via digital platforms.
• 97% of disbursements in retail finance are processed via scorecards or business rule engines.
• 99% of collections are conducted through digital channels.
• 98% of customer queries are addressable digitally.

Outlook and Future Plans

Tata Capital's management remains optimistic about the company's growth prospects. The recent GST reduction is expected to provide a fillip to consumption, creating a supportive environment for higher growth in the second half of FY26.

Rajiv Sabharwal, Managing Director & CEO of Tata Capital, commented on the Q2FY26 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."

As Tata Capital continues to execute its expansion strategy, the company remains committed to leveraging its digital capabilities, diverse product offerings, and strong market position to achieve its growth targets and deliver value to all stakeholders.

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.