Tata Capital's Q3 FY26 results: Profit rises 36% to ₹1,285 crore

Tata Capital's Q3FY26 profit jumps 36% to ₹1,285 crore on strong income and AUM growth; asset quality remains stable

Tata Capital, a non-banking financial company (NBFC), posted a 36 per cent year-on-year rise in profit to ₹1,285 crore in the October–December quarter of FY26 (Q3FY26) from ₹922 crore in the year-ago period, aided by healthy growth in income.

 

Net total income grew by 33 per cent year-on-year to ₹3,594 crore. Meanwhile, the gross loan book of the company rose by 23 per cent year-on-year to ₹2.29 trillion.

 

The company also made a provision of ₹27.05 crore as an incremental impact under “exceptional item” in the standalone accounts owing to the new labour codes introduced by the government of India on November 21, 2025.

 

 

Assets under management (AUM) of the company grew by 26 per cent year-on-year to ₹2.34 trillion as on December 31, 2025. The SME segment accounts for the highest share in the AUM mix at ₹70,549 crore.

 

Commenting on the financial results, Rajiv Sabharwal, managing director and chief executive officer of Tata Capital, said: “We witnessed sustained business momentum in Q3FY26, with broad-based growth across products. Excluding Motor Finance, AUM grew 26 per cent year-on-year to ₹2,34,114 crore, and comparable profit after tax increased by 39 per cent year-on-year to ₹1,285 crore for Q3FY26. Credit quality continued to remain robust, with early leading indicators reflecting stable portfolio performance across segments. Unsecured retail disbursements, which were moderated earlier as a prudent risk measure, have seen a gradual uptick, with slippages coming down. Our distribution network and strategic focus on digital and GenAI capabilities continue to drive operating efficiencies.”

 

On the asset quality front, gross stage 3 of the company was flat at 1.6 per cent as of December 31, 2025, compared to September 30, 2025. Net stage 3 was also flat at 0.6 per cent as of December 31, 2025, from September 30, 2025. Annualised return on assets stood at 2.3 per cent in Q3FY26 as against 2 per cent in Q3FY25.

 

On a consolidated basis, including Motor Finance, the AUM of the company during the quarter grew by 7 per cent quarter-on-quarter, while profit after tax rose 18 per cent to ₹1,290 crore. The Motor Finance segment achieved breakeven in the quarter.