Tata Capital posts 2% rise in Q2 profit to ₹1,097 crore; revenue up 7.7% YoY

Tata Capital on Tuesday released its first quarterly results since its listing earlier this month. The NBFC company reported a consolidated net profit of ₹1,097.32 crore for the second quarter ended September 30, 2025, a 2% increase from ₹1,075.72 crore in the corresponding period last year. Sequentially, the profit rose 10.85% from ₹989.89 crore in the previous quarter.

The Tata Group company’s consolidated revenue from operations stood at ₹7,737.18 crore, up 7.68% year-on-year (YoY) from ₹7,184.78 crore in Q2 FY25, and 0.9% higher compared with ₹7,664.81 crore in Q1 FY26.

“Q2FY26 was a strong quarter marked by broad-based momentum,” said Rajiv Sabharwal, managing director & CEO, Tata Capital. “Credit quality remains robust across categories, resulting in a 30 bps drop in annualised credit cost in Q2FY26 over Q1FY26. Further, we continue to leverage our digital and Gen AI capabilities to improve customer experience and operating efficiency.”

Excluding Tata Motors Finance Limited (Motor Finance), whose acquisition was completed on May 8, 2025, assets under management (AUM) grew 22% YoY to ₹2,15,574 crore as on September 30, 2025, from ₹1,76,637 crore in the year-ago period.

On the integration of the Motor Finance business, he added, “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 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 Q4 FY26,” said the Tata Capital CEO.

“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 building on this momentum and delivering consistently for all stakeholders,” he added.

As of September 30, 2025, the total equity stood at ₹35,081 crore, including the primary portion of the IPO at ₹41,777 crore. The company’s capital risk adequacy ratio stood at 17.3% as of September 30, 2025, and 21.5% including the IPO proceeds.

Tata Capital, the financial services arm of the Tata Group, raised ₹15,512 crore via the IPO route, which comprised a fresh issue of 21 crore shares worth ₹6,846 crore and an offer for sale of 26.58 crore shares aggregating to ₹8,665.87 crore. The company proposes to utilize the net proceeds from the fresh issue to augment its capital base to meet future capital requirements.

Tata Capital’s IPO was the largest public issue of 2025, surpassing the ₹12,500-crore IPO of HDB Financial Services, a subsidiary of HDFC Bank, and the biggest since Hyundai Motor India’s record ₹27,870-crore offering last year. It also marks the Tata Group’s second market debut in recent years, following Tata Technologies’ listing in November 2023.

Ahead of its Q2 results, Tata Capital shares ended 0.64% higher at ₹330.95 on the BSE, valuing the company at around ₹1.4 lakh crore. The Tata Group stock, which debuted on October 13, 2025, has so far traded between a high of ₹336.55 (October 17) and a low of ₹326.55 (October 14).