Tata Capital earnings rose 51% year over year in the September 2026 quarter, with consolidated net profit reaching ₹1,660 crore. The financial services company reported higher interest income, a larger loan book and lower loan-loss provisions.
Key Takeaways
- Net interest income rose 23% year over year to ₹3,696 crore.
- The gross loan book crossed ₹3 lakh crore, reaching ₹3,03,739 crore.
- Loan losses and provisions fell 17% to ₹645 crore.
Tata Capital earnings rise as income grows
Consolidated net profit increased from ₹1,097 crore in the year-earlier September quarter. It was also 7% higher than the ₹1,547 crore reported for the June 2026 quarter.
Net total income rose 24% year over year to ₹4,676 crore, while net interest income increased from ₹3,006 crore to ₹3,696 crore. The latter also grew 3.5% from the preceding quarter.
Pre-provisioning operating profit rose 33% to ₹3,025 crore. Operating expenses increased 10% to ₹1,651 crore, slower than income, and the cost-to-income ratio improved to 35.3% from 39.7% a year earlier.
| Item | Details |
|---|---|
| Gross stage 3 ratio | 1.9% as of September 30, 2026 |
| Net stage 3 ratio | 0.8% as of September 30, 2026 |
| Provision coverage ratio | 58.6% as of September 30, 2026 |
| Capital adequacy ratio | 17.3% at the end of September |
Loan growth and lower provisions
The gross loan book grew 27% from ₹2,39,960 crore a year earlier. Assets under management rose 26% to ₹3,08,030 crore as of September 30, 2026; excluding motor finance, they increased 32%.
Managing Director and CEO Rajiv Sabharwal said crossing ₹3 lakh crore in loans marked a significant milestone. He also said asset quality remained stable, supported by underwriting and collections.
Loan losses and provisions declined from ₹773 crore a year earlier and ₹676 crore in the June quarter. Profit before tax rose 58% year over year to ₹2,380 crore.
Asset quality and capital
Annualised credit cost declined to 0.9% from 1.3% a year earlier. Annualised return on assets improved to 2.3% from 1.9%, while return on equity rose to 14% from 13%.
Retail and SME lending accounted for 85.4% of net assets under management. Total equity stood at ₹47,778 crore at the end of September.
Update — 2026-10-27
Tata Capital will raise interest rates on its floating-rate loans by 20–25 basis points from November 1, Managing Director and CEO Rajiv Sabharwal said. He attributed the increase to the repo rate rise, which could increase the lender’s borrowing costs. The company’s loan against property page describes one of its lending products.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
Comments
Be respectful. No spam, impersonation or private credentials. Ordinary posts and comments appear immediately; suspicious links are held for review.
Please wait…