Tata Capital on October 28 reported a consolidated net profit of Rs 1,097 crore for the second quarter of the financial year 2026. This marks a 2 percent year-on-year (YoY) rise from the Rs 1,076 crore net profit reported in the same period last year.
The newly-listed firm announced its first earnings since listing. Its revenue from operations rose around 8 percent to Rs 7,737.18 crore in Q2 FY26. The Tata Group company had earlier reported revenue from operations at Rs 7,184.78 crore in Q2 FY25.
Tata Capital's expenses meanwhile grew around 10 percent YoY to Rs 6,246.15 crore. Net profit margin slightly fell to 14.18 percent during the quarter under review, from 14.97 percent in the same period last year.
Assets under management stood at Rs 2,43,896 crore at the end of the quarter, marking a sequential rise of 2.7 percent. Its on-roll employees count stood at 29,992.
The company said that asset quality in unsecured retail has started showing improving trends. Notably, retail unsecured forms 11.6 percent of the firm's gross loan book. Gross NPA and net NPA ratios were reported at 1.6 percent and 0.6 percent respectively, inline with Q1 FY26 levels. The firm said that it has strengthened collection efforts for its motor finance segment.
What Tata Capital management said:
Q2 FY26 was a strong quarter marked by broad-based momentum, said Rajiv Sabharwal, Managing Director and CEO of Tata Capital. He said that the firm's AUM grew 22 percent YoY, excluding Motor Finance, driven by sustained growth across all segments.
"Credit quality remains robust across categories, resulting in 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," he added.
'GST cuts to provide a fillip to consumption, leading to higher growth in H2'
On the macro front, the recent GST cuts enforced by the government are expected to provide a fillip to consumption, creating a supportive environment for higher growth in second half of FY26, Sabharwal said. "We remain fully committed to build on this momentum and deliver consistently for all stakeholders," he added.
Speaking about the Tata Motors Finance acquisition, which was completed on May 8 this year, Sabharwal said, "Following the Motor Finance acquisition, our focus has been on stabilizing key business metrics before accelerating growth. The integration is progressing well and remains on track with our plan. We have transitioned to a multi-OEM model and realigned the AUM mix towards used vehicles and small & light commercial vehicles. The underwriting and collection frameworks have been further strengthened. We aim to achieve a turnaround in the Motor Finance business and return to profitability by Q4FY26."
Tata Capital share price:
Tata Capital shares had made a tepid market debut earlier this month, listing at a premium of 1.23 percent over its IPO price at Rs 330 per share on NSE. The stock closed on Tuesday with marginal gains at Rs 330.60 apiece. This means that the stock has made only marginal gains since listing.
Notably, the results of the company were released in the post market hours of October 28. The stock will be kept under active watch tomorrow, when the markets reopen.
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