Conference Call with Tata Capital Management and Analysts on Q2FY26 Performance and Outlook. Listen to the full earnings transcript.
Finance company Tata Capital announced Q2FY26 results Retail + SME constitutes ~88% of gross loan book. Retail unsecured forms 11.6% of gross loan book. Pan India network of 1,479 branches across 27 states and union territories. Focused on improving business metrices in Motor Finance (~10% of gross loans) before accelerating growth. AUM grew by 3% QoQ to Rs 2,43,896 crore as on September 30, 2025 from Rs 2,37,508 crore as on June 30, 2025. Net total income grew by 4% QoQ to Rs 3,774 crore in Q2FY26 from Rs 3,626 crore in Q1FY26. Annualized operating expense on average net loan book of 2.6% in Q2FY26 vs. 2.4% in Q1FY26. Cost to income ratio stood at 39.7% in Q2FY26 vs. 36.8% in Q1FY26. Annualized credit cost of 1.3% in Q2FY26 vs. 1.6% in Q1FY26. Profit after tax grew by 11% QoQ to Rs 1,097 crore in Q2FY26 from Rs 990 crore in Q1FY26. Annualized ROA at 1.9% in Q2FY26 vs. 1.8% in Q1FY26. Annualized ROE at 12.9% in Q2FY26 vs. 12.5% in Q1FY26. Gross stage 3 stood at 2.2% | Net stage 3 stood at 1.1% | Provision coverage ratio stood at 52.8% as of September 30, 2025. Total equity as of Sep-25 at Rs 35,081 crore and including primary portion of IPO at Rs 41,777 crore. Capital risk adequacy ratio stood at 17.3% as of September 30, 2025 and 21.5% including the IPO proceeds. Credit rating of “AAA with stable outlook” from each of CRISIL, ICRA, CARE and India Ratings. S&P; Global Ratings upgraded the long-term rating from ‘BBB-/Positive’ to ‘BBB/Stable’ and the shortterm rating from ‘A-3’ to ‘A-2. Rajiv Sabharwal, Managing Director & CEO, Tata Capital, said: “Q2FY26 was a strong quarter marked by broad-based momentum. Excluding Motor Finance, AUM grew 22% YoY, driven by sustained growth across all segments and PAT rose 33% to Rs 1,128 crore, reflecting the strength of our diversified and well-managed portfolio. Credit quality remains robust across categories, resulting in 30bps drop in annualized credit cost in Q2FY26 over Q1FY26. Further, we continue to leverage our digital and GenAI capabilities for improving customer experience and operating efficiency. On the macro front, the recent GST reduction is expected to provide a fillip to consumption, creating a supportive environment for higher growth in second half of FY26. We remain fully committed to build on this momentum and deliver consistently for all stakeholders”. Result PDF