reported its highest-ever quarterly profit after tax of ₹1,128 crore for Q2FY26, marking a 33 per cent year-on-year increase, driven by strong momentum across its lending segments. The company’s assets under management grew 22 per cent to ₹2,15,574 crore, excluding its Motor Finance business acquired in May.
Managing Director and CEO Rajiv Sabharwal said credit quality remained robust, with annualised credit cost dropping 30 basis points sequentially to 1.1 per cent in Q2FY26. “We continue to leverage our digital and GenAI capabilities for improving customer experience and operating efficiency,” he stated, adding that recent reduction is expected to boost consumption in the second half of FY26.
The company’s net interest income rose 23 per cent to ₹2,637 crore, while fee income surged 59 per cent to ₹588 crore. Return on equity improved to 14.9 per cent from 13.7 per cent year-on-year. Including Motor Finance, the consolidated PAT stood at ₹1,097 crore with total AUM at ₹2,43,896 crore. Tata Capital aims to turn around its Motor Finance business and return it to profitability by Q4FY26.
On the stock market front, closed at ₹330.60 on Tuesday, up 0.52 per cent, after debuting on October 13 at ₹330—barely above its IPO price of ₹326. Nitin Jain, Senior Research Analyst at Bonanza, noted the stock has traded in a narrow ₹319-337 band since listing due to “rich valuation” and cautious sentiment. “While the listing garnered attention for scale and pedigree, the stock’s future re-rating hinges on delivering consistent financial performance,” he said.