October 29, 2025

Tata Capital has unveiled its second-quarter financial showstopper numbers! The company’s net profit nudged up by a modest but proud 2%, reaching a handsome Rs 1,097 crore. But wait, the real fireworks were in their net interest income, which soared by a spectacular 23% year-on-year to Rs 2,637 crore. What’s more, the company’s assets under management (AUM) saw a smashing 22% leap, climbing from Rs 1.76 lakh crore last year to Rs 2.15 lakh crore by September 2025. Rajiv Sabharwal, the MD and CEO of Tata Capital, chimed in, "Q2 was a strong quarter marked by broad-based momentum. Excluding Motor Finance, AUM growth was driven by sustained growth across all segments, reflecting the strength of our diversified and well-managed portfolio." This shows that Tata Capital is not just growing, but growing with balance and strength. The earnings party continued as the pre-provision operating profit zoomed 36% to Rs 2,110 crore! On top of that, credit quality remained rock solid, leading to a 30 bps drop in annualized credit cost over the past year. Tata Capital is also revving up its tech game using digital and GenAI tools to make customers smile and operations smooth. Sabharwal also highlighted a juicy macro boost: "On the macro front, the recent GST reduction is expected to provide a fillip to 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 consistently for all stakeholders." How about their Motor Finance business? Tata Capital is working hard to stabilize and revamp this segment. The integration is on track, with a new multi-OEM approach and a tilt towards used vehicles and small commercial vehicles. The goal? Turn the business around and see profits by the fourth quarter of FY26. Adding all segments, retail and SME loans make up a hefty 88% of the gross loan book, with retail unsecured loans constituting 11.6%. The company’s capital risk adequacy ratio stands strong at 17.3%, or 21.5% including IPO money. On the stock exchange floor, Tata Capital’s shares ended the day up 0.5%, closing at Rs 330.6 on the NSE. Looks like investors are nodding in approval! Tata Capital’s Q2 results show a company that is steady, growing, and gearing up to race ahead in the world of finance.

Read More at Economictimes →

Tags: Tata capital, Q2 results, Net profit, Assets under management, Motor finance, Rajiv sabharwal,