Tata Capital Q2 FY26 results highlight the company’s record quarterly profit after tax (PAT), with strong performance driven by broad-based growth, declining credit costs, and enhanced digital efficiency.
Tata Capital Q2FY26 Results (Excluding Motor Finance):
| Particulars | Q2FY25 | Q1FY26 | Q2FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Assets Under Management | 1,76,637 | 2,07,134 | 2,15,574 | +22 | +4 |
| Net Loan Book | 1,76,536 | 2,03,705 | 2,11,293 | +20 | +4 |
| Net Interest Income | 2,139 | 2,507 | 2,637 | +23 | +5 |
| Fee Income | 370 | 506 | 588 | +59 | +16 |
| Investment Income | 90 | 184 | 105 | +16 | (43) |
| Net Total Income | 2,599 | 3,197 | 3,330 | +28 | +4 |
| Operating Expense | 1,043 | 1,077 | 1,220 | +17 | +13 |
| Profit Before Tax | 1,208 | 1,425 | 1,545 | +28 | +8 |
| PAT | 849 | 1,021 | 1,128 | +33 | +10 |
| ROE (annualised) (%) | 1.4% | 1.4% | 1.1 | ↓30 bps | — |
| ROE (annualized) (%) | 13.7% | — | 14.9 | ↑120 bps | — |
Tata Capital’s profitability remained robust, with PAT growing 33% YoY and 10% sequentially. Asset quality improved further, with Gross Stage 3 at 1.6% and Net Stage 3 at 0.6%, alongside a provision coverage of 64%.
Tata Capital H1FY26 Consolidated Financials (Excluding Motor Finance)
| Particulars | H1FY25 | H1FY26 | YoY % |
|---|---|---|---|
| Assets Under Management (AUM) | 1,76,637 | 2,15,574 | +22% |
| Net Loan Book | 1,76,536 | 2,11,293 | +20% |
| Net Interest Income | 4,137 | 5,147 | +24% |
| Fee Income | 713 | 1,094 | +53% |
| Investment Income | 182 | 289 | +59% |
| Net Total Income | 5,032 | 6,530 | +30% |
| Operating Expense | 2,083 | 2,297 | +10% |
| Profit Before Tax | 2,365 | 2,972 | +26% |
| PAT (excl. non-recurring) | 1,702 | 2,151 | +26% |
| PAT (incl. non-recurring)** | 1,825 | 2,151 | +18% |
During H1FY26, Tata Capital sustained 20–30% growth across key income lines while maintaining cost control and improving operational metrics. The company’s credit quality and liquidity buffers remain among the best in the NBFC sector.
🚗 Tata Capital Q2 FY26 Results (Consolidated) (Including Motor Finance)
| Particulars | Q1FY26 | Q2FY26 | QoQ % |
|---|---|---|---|
| Assets Under Management | 2,37,508 | 2,43,896 | +3% |
| Net Loan Book | 2,28,579 | 2,34,991 | +3% |
| Net Total Income | 3,626 | 3,774 | +4% |
| Operating Expense | 1,335 | 1,497 | +12% |
| PAT | 990 | 1,097 | +11% |
| ROA / ROE | 1.8% / 12.5% | 1.9% / 12.9% | ↑ |
| Credit Cost (annualised) | 1.6% | 1.3% | ↓30 bps |
| Gross / Net Stage 3 | 2.2% / 1.1% | Stable | — |
Post the May 2025 Motor Finance acquisition, TCL is consolidating operations and focusing on profitability turnaround by Q4FY26. The segment contributes ~10% of AUM, and integration remains on schedule.
🏠 Subsidiary: Tata Capital Housing Finance Q2 FY26
| Particulars | Q2FY25 | Q2FY26 | YoY % |
|---|---|---|---|
| AUM | 58,257 | 75,636 | +30% |
| Net Total Income | 655 | 899 | +37% |
| PAT | 343 | 440 | +28% |
| Credit Cost | — | 0.1% | Low |
| ROA / ROE | 2.4% / 18.7% | 2.4% / 18.5% | Stable |
| Gross / Net Stage 3 | 0.8% / 0.3% | Excellent | — |
| CAR | — | 17.5% | Strong |
🏦 Balance Sheet & Ratings
- Total Equity: INR 35,081 crore (INR 41,777 crore including IPO proceeds)
- Capital Adequacy Ratio: 17.3% (21.5% including IPO)
- Credit Ratings:
- Domestic: AAA / Stable (CRISIL, ICRA, CARE, India Ratings)
- Global: S&P upgraded to BBB / Stable, short-term A-2
💬 CEO Comment:
“Q2FY26 was a strong quarter marked by broad-based momentum,” said Rajiv Sabharwal, MD & CEO.
“Excluding Motor Finance, AUM grew 22% YoY and PAT rose 33%, reflecting the strength of our diversified and well-managed portfolio. The integration of Motor Finance is progressing well, and we aim to achieve profitability by Q4FY26.”
Verdict
Tata Capital’s record profit, cost efficiency, and declining credit costs underline a maturing, resilient franchise. The company is emerging as a benchmark for digitally-led, diversified NBFC growth in India. Analysts expect sustained double-digit earnings in FY26, supported by the Motor Finance turnaround and continued digital transformation.
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