Tata Capital Q2 Results 2025 Highlights: Tata Group company posts marginal rise in consolidated PAT to ₹1,097 crore

Rajiv Sabharwal, Managing Director & CEO, Tata Capital, said, “Q2FY26 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%(1) to ₹1,128 crore, reflecting the strength of our diversified and well-managed portfolio. Credit quality remains robust across categories, resulting in a 30 bps 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. On the macro front, the recent GST reduction is expected to provide a fillip to consumption, creating a supportive environment for higher growth in the second half of FY26. We remain fully committed to build on this momentum and deliver consistently for all stakeholders.”

On integration of the Motor Finance business, he added, “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 Housing Finance, a material subsidiary of the company, also posted its Q2 results. Here are the key highlights

• Assets under management grew by 30% YoY to ₹ 75,636 crore as of September 30, 2025 from ₹ 58,257 crore as of September 30, 2024.
• Net total income increased by 37% YoY in Q2FY26 to ₹ 899 crore from ₹ 655 crore in Q2FY25.
• Profit after tax increased by 28% YoY in Q2FY26 to ₹ 440 crore from ₹ 343 crore in Q2FY25.

Cost-to-income ratio for Q2FY26 was 32.9% vs.35.9% in Q2FY25.

• Credit cost for Q2FY26 was low at ₹13 crore, representing annualized credit cost of 0.1%.
• Annualized ROA at 2.4% in Q2FY26 vs. 2.4% in Q2FY25.
• Annualized ROE at 18.5% in Q2FY26 vs. 18.7% in Q2FY25.
• Gross stage 3 stood at 0.8% | Net stage 3 stood at 0.3% | Provision coverage ratio stood at 55.6% as of September 30, 2025.

Tata Capital's PAT (excluding non-recurring income and motor finance biz) grew by 33% YoY to ₹1,128 crore in Q2FY26 from ₹849 crore in Q2FY25. Including such income, PAT grew by 17% YoY.

Meanwhile, net total income grew by 28% YoY to ₹ 3,330 crore in Q2FY26 from ₹ 2,599 crore in Q2FY25, excluding the motor finance business.

On a sequential basis, here are the key highlights of the business:

⦁ AUM grew by 3% QoQ to ₹2,43,896 crore as on September 30, 2025 from ₹2,37,508 crore as on June 30, 2025.

⦁ Net total income grew by 4% QoQ to ₹3,774 crore in Q2FY26 from ₹3,626 crore in Q1FY26.

⦁ Annualized operating expense on average net loan book of 2.6% in Q2FY26 vs. 2.4% in Q1FY26.

⦁ Cost to income ratio stood at 39.7% in Q2FY26 vs. 36.8% in Q1FY26.

⦁ Annualized credit cost of 1.3% in Q2FY26 vs. 1.6% in Q1FY26.

⦁ Profit after tax grew by 11% QoQ to ₹ 1,097 crore in Q2FY26 from ₹ 990 crore in Q1FY26.

The net interest income for the quarter stood at ₹3,003.96 on a consolidated basis, higher by 17% YoY, as against ₹2,559.93 crore posted in the similar period a year ago.

Tata Capital posted a consolidated net profit (attributable to owners) of ₹1097 crore for the second quarter of the fiscal year 2025-26 (FY26). This was against ₹1,076 crore profit that the company posted in the corresponding period a year ago, resulting in a 2% rise. Tata Capital posted its first earnings performance its stock market listing earlier this month.

Tata Capital stock ends marginally higher ahead of the Q2 results announcement later today. On BSE, Tata Capital stock closed 0.64% higher at ₹330.95.

Tata Capital Q2 Results LIVE: Tata Capital share price’s muted action can be attributed primarily to the rich valuation at the time of listing, as the IPO was priced at an aggressive multiple compared to its listed NBFC and financial. Market participants had anticipated a stronger debut, but immediate profit booking by institutional investors and cautious sentiment post-listing limited immediate upside. Additionally, investors are closely watching Tata Capital’s ability to sustain its high growth rates and maintain asset quality amid rising competition in the financial services sector, said Nitin Jain, Sr. Research Analyst at Bonanza.

Tata Capital Q2 Results LIVE: Tata Capital share price rose over 1% ahead of Q2 results today. Since its listing, the Tata Group stock’s performance has remained fairly steady, with prices oscillating within a narrow range between ₹319 and ₹336. Out of a total of 11 sessions for Tata Capital, the Tata Group stock has shown gains in six sessions and losses in five sessions

Tata Capital Q2 Results LIVE: Since its listing, Tata Capital Ltd has shown a modest performance, reflecting both market caution and its large-scale listing. While the brand strength, diversified loan-book across retail, SME and corporate segments, and backing of the Tata Group remain clear positives, the muted listing suggests that much of the growth narrative may already be discounted. The subdued start could imply a limited near-term upside unless the company demonstrates accelerated earnings growth or further margin expansion, said Kalp Jain, Research Analyst, INVasset PMS.

Tata Capital Q2 Results LIVE: Tata Capital reported consolidated net profit of ₹989.89 crore in the first quarter of FY26. The company’s total revenue from operations in Q1FY26 increased to ₹7,664.81 crore, while its Net Interest Income (NII) was ₹2866.21 crore. Net Interest Margin (NIM) during the quarter was 5.10%.

Tata Capital Q2 Results LIVE: Tata Capital share price traded higher ahead of Q2 results today. The Tata Group stock opened at ₹328.15 apiece as against its previous close of ₹328.85 on the BSE. Tata Capital share price gained as much as 1.39% to an intraday high of ₹333.45 apiece.

Tata Capital Q2 Results LIVE: In Tata Capital Q2 results today, market participants will focus on the company’s profitability, loan book, revenue growth, net interest margins, AUM growth, loan book, asset quality and other financial parameters. The company is expected to hold an earnings conference call to discuss the Q2 results with investors and analysts later.

Tata Capital Q2 Results LIVE: Tata Capital Ltd., the newly listed financial services arm of the Tata Group, will announce its Q2 results today. This will be the first quarterly results of Tata Capital after its shares got listed in the Indian stock market. The board of directors of Tata Capital is scheduled to meet on Tuesday, 28 October 2025, to consider and approve the financial results for the second quarter of FY26.