The reported net interest income for the quarter excludes the acquisition of Motor Finance.
Assets under management grew 22% year-on-year to Rs 2.15 lakh crore as of September 2025, from Rs 1.76 lakh crore a year earlier. Net total income rose 28% year-on-year to Rs 3,330 crore in Q2FY26.
“The second quarter was a strong quarter, marked by broad-based momentum. Excluding Auto Finance, growth in assets under management was driven by continued growth across all segments, reflecting the strength of our diversified and well-managed portfolio,” said Rajiv Sabharwal, MD and CEO, Tata Capital.
Operating profit before provisions rose 36% year-on-year to Rs 2,110 crore during the second quarter.
Tata Capital said figures excluding Motor Finance can be compared on an annual and quarterly basis, but figures including Motor Finance are best viewed on a sequential basis. NII rose 5% quarter-on-quarter to Rs 3,004 crore, including in auto finance. Credit quality remained healthy across all categories, resulting in a 30 basis point year-over-year decline in credit costs compared to the prior year quarter. Furthermore, the company said it continues to leverage its digital and GenAI capabilities to improve customer experience and operational efficiency.
“On a macro level, the recent GST cut is expected to boost consumption, creating a supportive environment for higher growth in the second half of FY26. We remain fully committed to building on this momentum and delivering consistent results for all stakeholders,” said Sabharwal.
Annualized operating expenses on average net loan portfolio improved from 2.4% in Q2FY25 to 2.3% in Q2FY26.
Regarding the integration of the Motor Finance business, the company said the focus was on stabilizing key business metrics before accelerating growth.
The integration is progressing well and remains on track with our plan. We moved to a multi-OEM model and realigned the AUM mix between used vehicles and small and light commercial vehicles.
Tata Capital is targeting a turnaround in its Motor Finance business and a return to profitability in Q4’26.
Including the self-financing figures, the private sector and SMEs represent 88% of the gross loan portfolio, while unsecured private loans represent 11.6% of the gross loan portfolio.
The capital risk adequacy ratio was 17.3% in September 2025 and 21.5% including IPO proceeds.
On Tuesday, Tata Capital shares closed 0.5% higher at Rs 330.6 on NSE.
#Tata #Capital #Results #Cons #net #profit #rises #YoY #crore #NII #jumps