Tata Capital shares hit record as analysts hike target after Q3 results

Tata Capital posted a 36 per cent year-on-year (Y-o-Y) rise in profit to ₹1,285 crore in the October-December quarter from ₹922 crore in the year-ago period

Shares of Tata Capital Ltd. pared off gains after hitting a new high on Tuesday as analysts hiked the target price of the stock after the company reported an in-line third-quarter performance in the current financial year.

 

The non-banking financial company's (NBFC) stock rose as much as 1.96 per cent during the day to a life high of ₹367.3 per share, the biggest intraday rise since January 14 this year. Tata Capital stock pared gains to trade 0.2 per cent higher at ₹360.2 apiece, compared to a 0.40 per cent decline in Nifty 50 as of 10:44 AM. 

 

Shares of the company rose for the fourth straight session and currently trade at 2.5 times the average 30-day trading volume, according to Bloomberg. The counter has risen 4.5 per cent this year, compared to a 2.3 per cent decline in the benchmark Nifty 50. Tata Capital has a total market capitalisation of ₹1.51 trillion.   READ LATEST STOCK MARKET UPDATES TODAY LIVE

 

Tata Capital Q3 results 

The NBFC posted a 36 per cent year-on-year (Y-o-Y) rise in profit to ₹1,285 crore in the October-December quarter 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.

 

Assets under management (AUM) of the company grew by 26 per cent Y-o-Y 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.  ALSO READ | PNB Q3 shows asset quality gains despite margin pressure: Analysts

Analysts on Tata Capital Q3 earnings

Emkay Global said Tata Capital continues to recalibrate its asset mix towards higher-yield and more granular segments such as unsecured retail, small and medium enterprises, affordable housing, loan against property and used commercial vehicles, while maintaining discipline on risk and margins.

 

The brokerage noted that stress in unsecured retail has largely eased, with collection efficiency improving across products. Management expects credit costs to trend lower and remain contained at around 1-1.2 per cent in FY26, before falling below 1 per cent over the medium term by FY28. Emkay Global said it has retained its Add rating on the stock, while raising its target price to ₹380 from ₹360.

 

JM Financial said asset quality improved during the period, with a decline in slippages and write-offs, leading to a moderation in credit costs by about 10 basis points to around 1.2 per cent.

 

The brokerage said management reiterated all its guidance provided during the inaugural earnings call. JM Financial added that it has broadly maintained its estimates. The brokerage maintained 'Add' and revised the target of ₹385 per share. 

 

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