20-Jan-2026Today's Market Indicators


Tata Capital gains as Q3 PAT jumps 17% YoY to Rs 1,257 cr
(13:04, 20 Jan 2026)

The company's consolidated interest income increased 10% to Rs 7,242 crore in Q3 FY26 as against Rs 6,585 crore in Q3 FY25.

Total revenue from operations rallied 12.27% year on year (YoY) to Rs 7,975.44 crore in Q3 FY26.

Profit before tax in Q3 FY26 stood at Rs 1,694.69 crore, up by 19.79% from Rs 1,414.66 crore in Q3 FY25

Assets under management rose 26% year-on-year to Rs 2,34,114 crore as of 31 December 2025, from Rs 1,86,404 crore a year earlier.

Annualised operating expenses as a percentage of the average net loan book declined to 2.3% from 2.4% in the year-ago quarter, while the cost-to-income ratio improved to 35.7% from 40.1%.

Annualised return on assets rising to 2.3% in Q3FY26 from 2.0% a year earlier, and return on equity inching up to 14.3% from 14.1%.

Asset quality remained stable, with gross Stage 3 assets at 1.6% and net Stage 3 assets at 0.6% as of 31 December 2025. The provision coverage ratio stood at 64.5% at the end of the quarter.

Tata Capital reported strong growth across its consolidated business, including Motor Finance, in Q3FY26. 'Our AUM grew 7% quarter-on-quarter, and PAT (excluding the impact of new labour codes) rose 18% to Rs 1,290 crore. Our Motor Finance segment achieved PAT breakeven this quarter, and we remain focused on executing our strategic priorities,' said the company.

Designated as an upper-layer NBFC in September 2022, Tata Capital offers a portfolio of more than 25 lending products, serving a diverse customer base that includes salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.

Beyond lending, the company distributes third-party products such as insurance and credit cards, provides wealth management services, and acts as a sponsor and investment manager for private equity funds.

Rajiv Sabharwal, managing director (MD) & CEO, Tata Capital said, 'We witnessed sustained business momentum in Q3FY26, with broad-based growth across products. Excluding Motor Finance, AUM grew 26% year-on-year to Rs 2,34,114 crore, and comparable PAT increased by 39% year-on-year to Rs 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.

Tata Capital (TCL), the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons and is carrying on business as a NBFC. It is engaged in providing/supplying a wide array of services/products in the financial services sector and operates across various areas of business: Commercial Finance, Consumer Loans, Wealth Services and distribution and marketing of Tata Cards.

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