Tata Capital Limited (TCL) on Monday reported a consolidated profit after tax (PAT) of ₹1,290 crore for Q3 FY26, up 18% compared to the preceding quarter.

The company’s assets under management (AUM) reached a new milestone, rising to ₹2,60,698 crore as of December 31, 2025. This marks a 7% increase on a quarter-on-quarter (QoQ) basis. The growth was broad-based across segments, with the motor finance business achieving PAT breakeven during the quarter under review.

Revenue performance

On a standalone basis, Tata Capital's total revenue from operations stood at ₹5,783.28 crore for the quarter, up from ₹5,584.44 crore in the previous quarter. Interest income remained the primary contributor, accounting for ₹5,219.64 crore of the standalone revenue. For the nine-month period ended December 31, 2025, standalone interest income totalled ₹15,320.49 crore.

Capital augmentation

Tata Capital launched a successful initial public offering (IPO) in October 2025. The fresh issue of 21 crore equity shares at ₹326 per share raised ₹6,696.60 crore in proceeds. These funds were fully utilised during the quarter to strengthen the company’s Tier-I capital base, positioning itself to meet future growth requirements. Consequently, the standalone debt-equity ratio improved to 3.95 times from 4.92 times in the preceding quarter.

Operational stability

Standalone impairment on financial instruments was managed at ₹753.48 crore for the quarter, slightly lower than ₹757.76 crore during the previous quarter.

Commenting on the financial results, Rajiv Sabharwal, managing director & CEO, Tata Capital said, “We witnessed sustained business momentum in Q3FY26, with broad based growth across products. Excluding Motor Finance, AUM grew 26% year-on-year to ₹2,34,114 crore, and comparable PAT increased by 39% year-on-year to ₹1,285 crore for Q3FY26. Credit quality continued to remain robust, with early leading indicators reflecting stable portfolio performance across segments. Unsecured retail disbursements, which were moderated earlier as a prudent risk measure, have seen a gradual uptick, with slippages coming down. Our distribution network and strategic focus on digital and GenAI capabilities, continue to drive operating efficiencies."

The shares of Tata Capital ended 0.028% lower at ₹359.25 apiece on the national stock exchange on Monday. The company's stock price has surged nearly 11% in the past one month as compared with the benchmark Nifty 50 index which has fallen nearly 1.5% during the same period.