Tata Capital Q2 Results 2025: Profit Slips 1.2% YoY to ₹1,119 Crore; NII Jumps 17%

Mumbai, Oct 28, 2025 (Updated 5:52 PM IST): Tata Capital Ltd., the newly listed financial arm of the Tata Group, announced its Q2FY26 results on Tuesday, reporting a marginal 1.2% year-on-year decline in consolidated profit after tax (PAT) to ₹1,119 crore for the quarter ended September 30, 2025. This marks Tata Capital’s first quarterly results after its market debut earlier this month.

Despite the slight dip in profit, net interest income (NII) recorded a strong 17% YoY rise to ₹3,003.96 crore, compared to ₹2,559.93 crore in the same quarter last year, as per the company’s exchange filing.

Tata Capital Q2 Highlights

PAT: ₹1,119 crore, down 1.2% YoY

NII: ₹3,003.96 crore, up 17% YoY

AUM: ₹2,43,896 crore, up 3% QoQ

Quarter-on-Quarter PAT growth: 11% (₹1,097 crore vs ₹990 crore)

Credit cost: Down to 1.3% in Q2FY26 vs 1.6% in Q1FY26

CEO Rajiv Sabharwal on Q2 performance

Rajiv Sabharwal, Managing Director & CEO of Tata Capital, said the company witnessed broad-based growth momentum during the quarter, with AUM (excluding motor finance) expanding 22% YoY and PAT (excluding non-recurring income) surging 33% to ₹1,128 crore.

“We continue to leverage digital and GenAI capabilities to enhance customer experience and operational efficiency,” said Sabharwal. “The recent GST reduction is expected to boost consumption and support higher growth in the second half of FY26. We remain committed to building on this momentum for our stakeholders.”

On the integration of the Motor Finance business, Sabharwal noted that the focus has been on stabilizing key metrics before accelerating growth. The company aims for a turnaround and profitability by Q4FY26.

Tata Capital Housing Finance posts strong numbers

Tata Capital Housing Finance Ltd., a key subsidiary, posted robust performance:

AUM: ₹75,636 crore, up 30% YoY

PAT: ₹440 crore, up 28% YoY

Net total income: ₹899 crore, up 37% YoY

Credit cost: ₹13 crore (0.1% annualized)

ROA: 2.4% | ROE: 18.5%

Gross Stage 3: 0.8% | Net Stage 3: 0.3%

Muted market debut

Tata Capital’s ₹15,512-crore IPO, India’s biggest public issue of 2025, saw a modest debut on October 13, listing at ₹330 per share — a 1.2% premium over its issue price of ₹326. Since listing, the stock has traded between ₹319 and ₹336 on the exchanges, showing steady but cautious investor sentiment.

Market experts attribute the muted movement to rich valuations at listing and profit booking by institutional investors. Analysts say sustained growth in earnings and asset quality will be key to future upside.

Outlook

With strong NII growth, stable credit quality, and a digitally driven approach, Tata Capital continues to build on its diversified loan portfolio across retail, SME, and corporate segments. However, investors are watching for faster profit growth and margin expansion in upcoming quarters to justify its high valuation post-IPO.