Tata Capital on Tuesday reported an 11% quarter-on-quarter (QoQ) rise in net profit to ₹1,097 crore for the September quarter (Q2 FY26), marking its first quarterly results since listing.
The company’s net interest income (NII) climbed 5% sequentially to ₹3,004 crore, reflecting the impact of its Tata Motors Finance acquisition, completed on May 8, 2025. Tata Capital said the results are presented on a sequential basis post-merger.
“Following the Motor Finance acquisition, our focus has been on stabilising key business metrics before accelerating growth. The integration is progressing well and remains on track,” said Rajiv Sabharwal, Managing Director & CEO, in an official release.
He added that Tata Capital has transitioned to a multi-OEM model, realigned its asset under management (AUM) mix toward used and light commercial vehicles, and reinforced its underwriting and collection frameworks. The company aims to turn around the motor finance business and return it to profitability by Q4 FY26.
Tata Capital’s AUM grew 3% sequentially to ₹2.44 lakh crore, while the net loan book stood at ₹2.35 lakh crore as of September 30, 2025. The retail and SME segments accounted for 88% of the gross loan book, with unsecured retail loans forming 11.6%.
On the asset quality front, gross Stage 3 assets were at 2.2%, and net Stage 3 assets stood at 1.1%. The capital adequacy ratio (CAR) was 17.3%, rising to 21.5% including IPO proceeds.
Shares of Tata Capital closed 0.5% higher at ₹330.60 on the NSE on Tuesday.
