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Informist, Tuesday, Oct. 27, 2026

 

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--Tata Capital Jul-Sept consol net profit INR 16.60 bln
--Analysts saw Tata Capital Jul-Sept consol net profit at INR 16.64 bln
--Tata Capital Jul-Sept consol revenue INR 93.42 bln
--Tata Capital Jul-Sept consol PAT INR 16.60 bln vs INR 10.97 bln year ago
--Tata Capital Jul-Sept consol revenue INR 93.42 bln vs INR 77.39 bln yr ago
--Tata Capital to increase medium-term note program to $3 bln from $2 bln
--Tata Capital Apr-Sept consol PAT INR 32.07 bln vs INR 20.87 bln yr ago
--Tata Capital Apr-Sept consol revenue INR 181.6 bln vs INR 154.0 bln yr ago
--Tata Capital Jul-Sept consol net interest income INR 36.96 bln, up 23% YoY
--Tata Capital Jul-Sept consol net AUM at INR 3.08 tln, up 26% on year
--Tata Capital Jul-Sept, Apr-Sept consolidated earnings detailed table
--Tata Capital Jul-Sept annualised credit cost 0.9% vs 1.0% qtr ago
--Tata Capital Jul-Sept gross NPA 1.9% on Sept 30, unchanged from qtr ago
--Tata Capital Jul-Sept net NPA 0.8% on Sept 30, unchanged from qtr ago

 

By Priyasmita Dutta

 

NEW DELHI – Tata Capital Ltd. reported a sharp rise in its consolidated net profit for the September quarter on the back of healthy interest income. However, the non-banking financial company missed the Street view for net profit by a slim margin. A significant fall in provisions aided the company's bottom line, although finance costs limited the overall rise in net profit.

 

Tata Capital's net profit for the September quarter rose over 51% on year to INR 16.60 billion. Sequentially, it was up over 7%. Analysts had expected the company to report a net profit of INR 16.64 billion. The company's net revenue from operations--of which interest income is the biggest chunk--rose nearly 21% on year and 6% on quarter to INR 93.42 billion. Its total income during the quarter was INR 93.56 billion, up 21% on year. This is the sharpest on-year rise in Tata Capital's total income since it got listed in October 2025.

 

The company released its June quarter results after market hours. Tuesday, its shares ended at INR 300.45 on the National Stock Exchange, up 0.3% from Monday.

 

The company's net interest income rose 23% on year to INR 36.96 billion during the quarter, Tata Capital said in its investor presentation. The net assets under management expanded 26% on year to INR 3.08 trillion as of Sept. 30. Excluding the motor finance business, assets under management grew 32% to INR 2.84 trillion, highlighting strong traction across its core retail and small and medium enterprise franchises, the company said. Retail and small and medium enterprise loans accounted for 85.4% of the lender's total portfolio.

 

Asset quality continued to remain stable during the quarter. The annualised credit cost of Tata Capital declined to 0.9% from 1.0% in the trailing quarter and 1.3% in the year-ago quarter. Its gross non-performing asset ratio was 1.9% during the September quarter, unchanged from a quarter ago but lower than 2.2% in the September quarter a year ago. The net non-performing asset ratio for the reporting quarter--at 0.8%--was also unchanged from a quarter ago but down from 1.1% in the corresponding period a year ago. The company's capital adequacy ratio moderated to 17.3%, similar to the level seen at the end of the September quarter last year, after ending the June quarter at 18.5%.

 

Managing Director and Chief Executive Officer Rajiv Sabharwal said artificial intelligence remains a strategic priority for the organisation. "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," he said. "We remain focused on pursuing growth in a disciplined manner while maintaining strong risk management and balance sheet resilience."

 

Tata Capital is the financial services company of the Tata group. It is an upper-layer non-banking finance company under the Reserve Bank of India's scale-based regulatory framework.

 

The company's provisions fell 17% on year to INR 6.45 billion during the September quarter, boosting the bottom line to that extent. However, expenses rose, particularly because of a jump in finance costs, which rose 18% on year to INR 46.80 billion. The increase in finance costs took the company's total expenses to INR 69.76 billion, up 12% on year.

 

The non-banking finance company's cost of borrowing during the September quarter was 7.3%, up 5 basis points on quarter. The company also announced Tuesday that its board has approved increasing the medium-term note programme to $3 billion from $2 billion. Based on market conditions, Tata Capital will raise funds through foreign currency bonds or other debt instruments, in one or more tranches, under the medium-term note programme.

 

For the first six months of the financial year 2026-27 (Apr-Mar), Tata Capital reported a consolidated net profit of INR 32.07 billion, up 54% on year. Its consolidated revenue during the same period rose 18% to INR 181.60 billion.  End

 

US$1 = INR 95.11

 

Edited by Rajeev Pai

 

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