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Informist, Thursday, Apr. 23, 2026

By Shumaila Firoz

MUMBAI – Tata Capital Ltd. posted a sharp on-year rise in its consolidated bottom line for the March quarter on the back of growth in its assets under management. The net profit growth was also supported by higher interest income. 

The non-banking financial services company's net profit for the March quarter rose 43% on year to INR 15.02 billion. The company beat analysts' expectations of INR 14.64 billion of net profit. Its assets under management rose 28% on year to INR 2.52 trillion as on Mar. 31. Interest income increased nearly 9% to INR 74.94 billion for the quarter ended March. 

The company's consolidated revenue from operations rose over 9% on year to INR 81.60 billion in Jan-Mar, with interest income being the largest contributor. 

The company's net interest income for the latest quarter, excluding motor finance, was INR 31.27 billion, up 28% on year, while including motor finance its net interest income was INR 34.77 billion. The total income for the quarter rose nearly 9% on year to INR 81.62 billion. 

The company's net interest margin remains unchanged from the year-ago quarter at 5.2%. Tata Capital, which completed the merger with Tata Motors Finance in May 2025, saw its net assets under management, excluding motor finance, rise 28% on year to INR 2.52 trillion. Including motor finance, the assets under management rose over 6% on quarter to INR 2.77 trillion.

Growth remained diversified across segments, with retail and small and medium enterprises continuing to anchor the loan book. Retail loans accounted for 58.3% of the total assets under management, led by home loans at 15.9% and loans against property at 14.0%, along with personal and business loans at 9%. The SME segment contributed 27.4% of assets under management, while the corporate segment accounted for 14.3%.

Business trends improved during the quarter, particularly in unsecured retail segments such as personal loans, business loans, and microfinance, where disbursements picked up after earlier moderation, the company said in its investor presentation. 

Asset quality remained stable with a sequential improvement, as the company's gross non-performing assets, excluding motor finance, was at 1.5% and net non-performing assets at 0.5%. Credit cost declined to 0.8% from 1.0% in the previous quarter, indicating better risk management and collection efficiency. Tata Capital declared a final dividend of INR 0.57 per share.   

The company holds a liquidity buffer of INR 294.90 billion at the end of March, it said.

STANDALONE NUMBERS

On a standalone basis, the company reported nearly 81% on-year rise in net profit to INR 11.83 billion for the March quarter and, sequentially, it rose nearly 50%. The company's revenue for Jan-Mar was up nearly 8% on year and up nearly 6% on quarter at INR 61.10 billion. 

The company's net profit for the financial year 2025-26 (Apr-Mar) was up over 23% on year at INR 32.01 billion and revenue was up over 5% at INR 230.52 billion. Thursday, shares of the company closed nearly 1% higher at INR 340.60 on the National Stock Exchange. The company declared its financial results post market hours.  End 

Edited by Tanima Banerjee

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