Tata Capital Results: Here’s how the company performed in Q3 FY26

Synopsis: Tata Capital delivered a strong Q3 FY26 performance with double-digit NII growth, 30% YoY profit rise, robust AUM and loan book expansion, and a well-diversified portfolio, reflecting healthy demand and execution momentum.

This Tata Group stock, engaged in providing diversified financial services, including lending, consumer finance, wealth management, and insurance broking across India, jumped 2.17 percent after the company reported December quarterly results with a 30.30 percent YoY increase in net profit.

With a market capitalization of Rs. 1,52,305.90 crores, the share of Tata Capital Limited has reached an intraday high of Rs. 367.65 per equity share, rising nearly 2.17 percent from its previous day’s close price of Rs. 359.85. Since then, the stock has retreated and is currently trading at Rs. 356.55 per equity share. 

Q3 FY26 Result Walkthrough:

Coming into the quarterly results of Tata Capital Limited, the company’s consolidated Net interest income increased by 15.63 percent YOY, from Rs. 2,867 crore in Q3 FY25 to Rs. 3,315 crore in Q3 FY26, and grew by 10.35 percent QoQ from Rs. 3,004 crore in Q2 FY26.

In Q3 FY26, Tata Capital Limited’s consolidated net profit increased by 30.30 percent YOY, reaching Rs. 1,290 crore compared to Rs. 990 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 17.59 percent, from Rs. 1,097 crore.

The basic earnings per share increased by 2.19 percent and stood at Rs. 1.87 as against Rs. 1.83 recorded in the same quarter in the previous year, FY2025. Tata Capital Limited’s revenue and net profit have grown at a CAGR of 40.73 percent and 26.61 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 9.58 percent and 12.9 percent, respectively. Tata Capital Limited has an earnings per share (EPS) of Rs. 10.9, and its debt-to-equity ratio is 5.88x.

Assets Under Management (AUM) and Loan Book:

In Q3 FY26, Tata Capital reported strong balance-sheet growth across key metrics. Assets under management (AUM) (excluding Motor Finance) rose 25.6 percent year-on-year to Rs. 2,34,114 crore, compared to Rs. 1,86,404 crore in Q3 FY25. On a sequential basis, AUM increased 8.6 percent quarter-on-quarter from Rs. 2,15,574 crore in Q2 FY26.

Similarly, the gross loan book grew 22.9 percent YoY to Rs. 2,33,319 crore in Q3 FY26 from Rs. 1,89,892 crore a year ago. Compared to Q2 FY26, the loan book expanded 8.4 percent QoQ from Rs. 2,15,286 crore. The strong YoY and QoQ growth reflects healthy demand across lending segments and continued execution momentum.

Business Segment Wise AUM:

In Q3 FY26, Tata Capital reported total AUM of Rs. 2,60,698 crore, including motor finance (Rs. 26,584 crore), while AUM excluding motor finance stood at Rs. 2,34,114 crore. The portfolio comprised SME loans of Rs. 70,549 crore, home loans of Rs. 42,606 crore, loan against property of Rs. 36,193 crore, corporate loans of Rs. 34,213 crore, personal and business loans of Rs. 24,019 crore, other retail loans of Rs. 12,908 crore, and CEQ/two-wheeler loans of Rs. 13,627 crore, reflecting a well-diversified lending mix.

FY28 Management Guidance:

Tata Capital  Limited has guided for 23-25 percent annual growth in assets under management (AUM) between FY25 and FY28, indicating rapid expansion across its lending businesses. Despite this growth, Tata Capital plans to maintain tight cost control, with a cost-to-income ratio of 33-34 percent, meaning expenses will remain well-managed. 

On the asset quality front, it expects credit costs to stay below 1 percent and net NPAs below 1 percent, reflecting a healthy loan book and conservative underwriting. Profitability is projected to be strong, with profit after tax growing at over 30 percent annually during the same period. 

Returns are also expected to remain robust, with ROA of 2.5-2.7 percent and ROE of 17-18 percent, showing efficient use of assets and capital. Overall, the guidance signals Tata Capital’s confidence in delivering fast growth with stable margins and low risk.

Company Overview:

Tata Capital Limited operates as the flagship financial services arm of the Tata Group, established around 2007 as a diversified non-banking financial company (NBFC) in India. It provides a wide range of lending solutions tailored to individuals, small and medium enterprises, and corporates, including consumer loans, home financing, business loans, microfinance, and enterprise funding.

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