Tata Capital reports highest ever quarterly PAT and strong AUM growth for Q2FY26
Tata Capital reported strong Q2FY26 results with highest ever quarterly PAT of ₹ 1,128 crore (excluding non-recurring income), 22% AUM growth, and reduced credit costs, indicating robust performance and positive outlook.
The announcement contains key financial results for the quarter, including record PAT and strong AUM growth, which are crucial indicators for investors and can significantly influence the company's stock performance and market perception.
The company reported its highest ever quarterly PAT, significant AUM growth, improved credit quality with reduced credit costs, and positive outlook from management regarding market conditions and business integration, all contributing to a strong positive sentiment.
Tata Capital Limited (TCL) has announced its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, which were approved by the Board of Directors on October 28, 2025. Key highlights include: * Overall Performance: The company recorded strong Assets Under Management (AUM) growth and its highest ever quarterly Profit After Tax (PAT), with credit costs decreasing by approximately 30 basis points sequentially.
* Management Commentary (Mr. Rajiv Sabharwal, MD & CEO): * Q2FY26 was a strong quarter with broad-based momentum. * Excluding Motor Finance, AUM grew 22% year-on-year (YoY). * PAT rose 33% to ₹ 1,128 crore, reflecting the strength of a diversified portfolio. * Credit quality remains robust across categories, resulting in a 30bps drop in annualized credit cost in Q2FY26 over Q1FY26. * The company continues to leverage digital and GenAI capabilities for improving customer experience and operating efficiency. * Anticipates the recent GST reduction to provide a fillip to consumption, creating a supportive environment for higher growth in the second half of FY26. * Motor Finance Integration: The integration of the Motor Finance business, acquired on May 8, 2025, is progressing well. The focus is on stabilizing key business metrics, transitioning to a multi-OEM model, and realigning the AUM mix towards used vehicles and small & light commercial vehicles. The aim is to achieve a turnaround and return to profitability by Q4FY26.
* Consolidated Performance Highlights (Excluding Motor Finance - Q2FY26 vs Q2FY25): * Assets under management grew by 22% YoY to ₹ 2,15,574 crore as of September 30, 2025. * Net total income grew by 28% YoY to ₹ 3,330 crore. * PAT (excluding non-recurring income) grew by 33% YoY to ₹ 1,128 crore. * Annualized Return on Equity (ROE) was 14.9%. * Gross Stage 3 stood at 1.6% and Net Stage 3 at 0.6% as of September 30, 2025. * Annualized credit cost was 1.1% in Q2FY26, down from 1.4% in Q1FY26.
* Consolidated Performance Highlights (Including Motor Finance - Q2FY26 vs Q1FY26): * AUM grew by 3% quarter-on-quarter (QoQ) to ₹ 2,43,896 crore as of September 30, 2025. * Net total income grew by 4% QoQ to ₹ 3,774 crore. * Profit after tax grew by 11% QoQ to ₹ 1,097 crore. * Annualized Return on Assets (ROA) at 1.9% and ROE at 12.9%. * Gross Stage 3 stood at 2.2% and Net Stage 3 at 1.1% as of September 30, 2025. * Total equity was ₹ 35,081 crore, and ₹ 41,777 crore including the primary portion of IPO. * Capital risk adequacy ratio stood at 17.3% (21.5% including IPO proceeds). * Credit rating of “AAA with stable outlook” from CRISIL, ICRA, CARE, and India Ratings. S&P Global Ratings upgraded the long-term rating from ‘BBB-/Positive’ to ‘BBB/Stable’ and the short-term rating from ‘A-3’ to ‘A-2’.
* Tata Capital Housing Finance Limited (TCHFL) Q2FY26 Performance (Material Subsidiary): * AUM grew by 30% YoY to ₹ 75,636 crore. * Net total income increased by 37% YoY to ₹ 899 crore. * Profit after tax increased by 28% YoY to ₹ 440 crore. * Annualized ROA at 2.4% and ROE at 18.5%. * Credit cost was low at ₹ 13 crore, representing an annualized credit cost of 0.1%. * Gross Stage 3 stood at 0.8% and Net Stage 3 at 0.3%.
What to do with a filing like this
Tata Capital Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Tata Capital Limited. Read the original for the full detail.