Tata Capital Q2 FY26 Earnings Results: Net Profit Rises 2% to ₹1,097 Crore; Revenue Grows 8%

Tata Capital Limited reported a 2% year-on-year rise in consolidated net profit to ₹1,097 crore for the second quarter of FY26, compared to ₹1,076 crore in the same quarter last year. The company’s revenue from operations increased 8% to ₹7,737 crore, up from ₹7,185 crore in Q2 FY25.

This marks Tata Capital’s first quarterly result since its stock market listing earlier this month.

Tata Capital Q2 FY26 Earnings: Expenses and Margins

Total expenses rose by 10% YoY to ₹6,246 crore during the quarter, which caused the net profit margin to decline slightly to 14.18%, compared to 14.97% last year.

The company’s assets under management (AUM) reached ₹2,43,896 crore, up 2.7% sequentially. Tata Capital currently employs 29,992 people across its operations.

Asset Quality and Segment Updates

Tata Capital reported stable asset quality, with gross NPA at 1.6% and net NPA at 0.6%, in line with the previous quarter. The firm noted improvement in unsecured retail loans, which make up 11.6% of its total loan book, and has strengthened collections in its motor finance segment.

Management Commentary

Managing Director and CEO Rajiv Sabharwal said Q2 FY26 was marked by broad-based momentum, with AUM rising 22% YoY (excluding motor finance). He added that credit costs fell by 30 basis points over Q1 and the company continues to leverage digital and GenAI tools to enhance customer experience and efficiency.

Sabharwal also noted that the recent GST cuts could boost consumption and economic activity in the second half of FY26.

Motor Finance Acquisition Update

Following the acquisition of Tata Motors Finance in May 2025, the company is focusing on stabilising operations before accelerating growth. Tata Capital has shifted to a multi-OEM model, emphasising used vehicles and small commercial segments. The firm expects the Motor Finance business to return to profitability by Q4 FY26.

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Tata Capital Share Price Movement

As of October 29, 2025 (12:38 pm IST), Tata Capital share price (NSE: TATACAP) was trading at ₹326.30, down by ₹4.80 or 1.45% for the day. The stock opened at ₹331.90, which was also its intraday high, and touched a low of ₹325.80. The company has a market capitalisation of ₹1.39 lakh crore and a price-to-earnings (P/E) ratio of 36.50. Tata Capital currently does not offer a dividend yield. Over the past year, the stock has traded between a 52-week high of ₹336.65 and a 52-week low of ₹319.05.

Conclusion

Tata Capital’s Q2 results show steady growth in profit and revenue, supported by improving asset quality and disciplined expansion. With strong digital initiatives, stable credit metrics, and the integration of its motor finance business on track, the company appears well-positioned for sustained growth in the second half of FY26.

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