Tata Capital Limited has reported a consolidated Profit After Tax (PAT) of ₹1,660 crore for the quarter ended September 30, 2026, marking a 51% rise from ₹1,097 crore in the same quarter last year.
During the quarter, the company’s loan book crossed the ₹3 trillion milestone, with gross loans reaching ₹3,03,739 crore.
The company’s Assets Under Management (AUM) grew 26% year-on-year to ₹3,08,030 crore as of September 30, 2026, up from ₹2,43,896 crore a year earlier. Excluding Motor Finance, AUM rose 32%. Retail and SME loans together made up 85.4% of net AUM, with high-margin retail accounting for around a quarter of the book. For the first half of FY27, PAT stood at ₹3,207 crore, up 54% from ₹2,087 crore in the corresponding period last year.
Net total income for the quarter grew 24% to ₹4,676 crore, while pre-provisioning operating profit rose 33% to ₹3,025 crore. The company also improved its efficiency, with the cost-to-income ratio declining to 35.3% from 39.7% a year earlier and annualised operating expenses on the average net loan book easing to 2.3% from 2.6%. Annualised credit cost came down to 0.9% from 1.3%, while loan losses and provisions fell 17% to ₹645 crore.
Return ratios strengthened during the quarter, with annualised return on assets rising to 2.3% from 1.9% and annualised return on equity improving to 14.0% from 13.0%. Asset quality remained stable, with gross Stage 3 assets at 1.9%, net Stage 3 assets at 0.8% and a provision coverage ratio of 58.6%. The company’s total equity stood at ₹47,778 crore, and its capital risk adequacy ratio was 17.3%.
Commenting on the performance, Rajiv Sabharwal, Managing Director & CEO, Tata Capital said, “We achieved a significant milestone during the quarter, with our loan book crossing ₹3 trillion, underscoring the scale, diversification and resilience of our franchise. Our AUM stood at ₹3,08,030 crore, up 26% year-on-year, while PAT grew 51% year-on-year to ₹1,660 crore. Excluding Motor Finance, AUM grew 32% year-on-year. Asset quality remained stable, reflecting our continued focus on portfolio quality, prudent underwriting and effective collections.”
He further added, “Artificial intelligence remains a core strategic priority for the organization. During the quarter, we continued to scale AI-led capabilities across onboarding, operations, underwriting, servicing and collections. More than 70% of retail applications are now processed through AI, while AI-assisted underwriting has been adopted across 95%+ of Personal Loan and Business Loan cases, improving processing turnaround time by over 39% and enhancing underwriting productivity. Our AI-powered operations platform has achieved adoption across over 95% of Business Loan, Two-Wheeler and Micro Finance workflows, delivering meaningful gains in productivity, turnaround time and operating efficiency. In customer servicing and collections, AI agents now handle a significant share of customer interactions and early-bucket collections, enabling faster response times, wider customer reach and lower servicing cost. These capabilities are helping us enhance customer experience and build a more scalable growth platform for the future.”
On the macroeconomic environment, he added, “While global uncertainties and evolving market conditions warrant continued vigilance, India’s strong economic fundamentals, structural growth drivers, and rising credit penetration continue to create significant long-term opportunities. We remain focused on pursuing growth in a disciplined manner, while maintaining strong risk management and balance sheet resilience.”
The company’s wholly owned housing finance subsidiary, Tata Capital Housing Finance Limited, also delivered steady growth during the quarter. Its AUM rose 26% to ₹95,098 crore, while PAT increased 26% to ₹552 crore from ₹440 crore a year earlier. The subsidiary maintained strong asset quality, with gross Stage 3 assets at 0.7% and net Stage 3 assets at 0.3%, along with a capital adequacy ratio of 17.6%.
