Tata Capital Housing Finance Approves ₹650.02 Crore Rights Issue to Parent Tata Capital

Tata Capital Limited (TCL) has announced that its wholly owned subsidiary, Tata Capital Housing Finance Limited (TCHFL), has approved a rights issue of equity shares amounting to ₹650.02 crore. The decision was communicated to Tata Capital on February 25, 2026, following approval by TCHFL’s board.

The equity shares, each valued at ₹10, will be issued to the parent company in one or more tranches. The development comes at a time when Tata Capital has reported strong quarterly performance across key financial metrics.

Rights Issue Approval and Capital-Raising Structure

TCHFL has approved the issuance of equity shares to Tata Capital on a rights basis, with an aggregate issue size of ₹650.02 crore. The rights issue will consist of equity shares with a face value of ₹10 each, to be subscribed by Tata Capital as the parent entity.

The company indicated that the offering may be completed in one or multiple tranches, depending on capital requirements. Tata Capital confirmed that it received formal intimation regarding the approval on February 25, 2026.

Parent Company Financial Performance for Q3FY26

Tata Capital reported a 19.7% quarter‑on‑quarter increase in net profit, rising to ₹790 crore in Q3FY26 from ₹660 crore in Q2FY26. Net interest income saw a significant 44% QoQ jump to ₹2,541 crore compared with ₹2,302 crore in the previous quarter.

The company also highlighted strong year‑on‑year growth in net total income, which increased 33% to ₹3,594 crore in Q3FY26. Including non‑recurring items, profit after tax expanded 36% year‑on‑year to ₹1,258 crore.

Balance Sheet Growth and Asset Quality Metrics

Assets under management rose 26% year‑on‑year to ₹2,34,114 crore as of December 31, 2025, compared with ₹1,86,404 crore a year earlier. The company attributed the expansion to broad‑based growth across lending categories.

On the asset quality front, Tata Capital reported gross non‑performing assets at 1.6% and net non‑performing assets at 0.6% as of December 2025. These figures indicate stable loan book performance supported by disciplined underwriting standards.

Strategic Implications for Tata Capital Housing Finance

The rights issue of ₹650.02 crore is expected to enhance the capital position of Tata Capital Housing Finance. The additional equity will strengthen its ability to support business expansion within the housing finance segment.

The decision aligns with broader capital‑planning requirements to maintain comfortable leverage and regulatory buffers. The approval process also reflects coordination between TCHFL’s board and Tata Capital’s management to ensure timely capital infusion.

Read More: Tata Group Defers Decision on N Chandrasekaran Second Term Amid Board Deliberations.

Conclusion

The decision by Tata Capital Housing Finance to issue ₹650.02 crore of equity shares to its parent marks a key capital‑raising step. The move follows strong financial performance by Tata Capital during Q3FY26, including growth in profit, income, and AUM.

The rights issue will enhance the subsidiary’s capital structure and support future business operations. The company continues to report stable asset quality levels alongside expanding lending activities.

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