Tata Capital Limited: Q3 FY26 Financial Performance Review

Executive Summary Tata Capital Limited (TCL) delivered a robust financial performance for the quarter ended December 31, 2025. The company demonstrated strong momentum in profitability and asset accumulation, driven by broad-based lending growth, improved asset yields, and operational efficiency. Notably, the Housing Finance subsidiary (TCHFL) and the newly integrated Motor Finance business contributed significantly to the quarter's success. Key Financial Highlights Net Profit Growth: Consolidated Net Profit rose by 19.7% quarter-on-quarter (QoQ) to ₹790 crore, up from ₹660 crore in Q2 FY26. Net Interest Income (NII): NII surged by 44% QoQ to ₹2,541 crore (vs. ₹2,302 crore in the previous quarter), reflecting healthy lending spreads and volume growth. Assets Under Management (AUM): The company reported steady AUM expansion supported by demand across Retail, SME, and Housing segments. Segmental & Operational Performance Housing Finance (TCHFL): A key growth driver, TCHFL recorded a 30% YoY increase in AUM and a 25% YoY rise in Profit After Tax (PAT), validating the group’s diversified portfolio strategy. Motor Finance: The Motor Finance division achieved PAT breakeven this quarter, marking a significant milestone following its integration in May 2025. Retail Lending: Unsecured retail disbursements have begun a gradual recovery following earlier precautionary moderation, supporting revenue lines while maintaining asset quality. Strategic & Market Outlook Asset Quality: Credit quality remains healthy with stable portfolio performance indicators across major segments. Digital Transformation: Continued investment in digital capabilities and GenAI solutions is enhancing operational efficiency and customer experience. Market Position: Despite strong fundamentals, the stock closed marginally flat at ₹359.25 (NSE) on January 19, 2026.