Tata Capital Q2 profit up 11%, motor finance integration progressing well

Tata Capital Ltd, in its first quarterly results since listing, reported an 11% quarter-on-quarter rise in net profit to ₹1,097 crore for the July–September quarter, compared with ₹990 crore in the previous quarter.

The company's net total income grew 4% sequentially to ₹3,774 crore from ₹3,626 crore in Q1 FY26.

Assets under management (AUM) stood at ₹2,43,896 crore as of September 30, 2025, up 3% from ₹2,37,508 crore as of June 30, 2025.

Retail and SME segments together constitute around 88% of Tata Capital’s gross loan book, while retail unsecured loans account for 11.6%. The company operates through a pan-India network of 1,479 branches across 27 states and union territories.

Rajiv Sabharwal, Managing Director and CEO, said, “Q2 FY26 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 crore, reflecting the strength of our diversified and well-managed portfolio.”

He added that integration of the recently acquired motor finance business, completed on May 8, 2025, is progressing well.

“Following the Motor Finance acquisition, our focus has been on stabilising key business metrics before accelerating growth… We aim to achieve a turnaround in the Motor Finance business and return to profitability by Q4 FY26,” Sabharwal said.

Tata Capital shares, which listed earlier this month at a 1.23% premium to the IPO price of ₹330 per share, closed on Tuesday with marginal gains at ₹330.60 apiece. The results were released post-market hours on October 28.