Tata Capital reported a 51 per cent rise in consolidated net profit to Rs 1,660 crore for the second quarter of financial year 2026-27, the company said on 27 October 2026. The profit in the same quarter last year was Rs 1,097 crore. The result covered the three months ended 30 September 2026. Tata Capital is a non banking financial company in the Tata group, and it lends to retail customers, small and medium enterprises and large companies, as well as providing housing finance through a subsidiary.
Net interest income rose 23 per cent year on year to Rs 3,696 crore, from Rs 3,006 crore a year earlier. Fee income rose 9 per cent to Rs 725 crore, from Rs 663 crore. Loan loss provisions fell 16.6 per cent to Rs 645 crore, from Rs 773 crore. Net total income rose 24 per cent to Rs 4,676 crore, from Rs 3,774 crore. The combination of higher interest income and lower provisions was the main reason profit rose faster than income in the quarter.
The consolidated results include Tata Capital Housing Finance, the company’s material housing finance subsidiary. Tata Capital said its loan book crossed Rs 3 lakh crore during the quarter. The consolidated loan book, measured as assets under management, rose 26 per cent year on year to Rs 3,08,030 crore at 30 September 2026, from Rs 2,43,896 crore a year earlier. Excluding motor finance, assets under management rose 32 per cent year on year.
Tata Capital loan book crosses Rs 3 lakh crore
The company reported a gross loan book of Rs 3,03,739 crore and a net loan book of Rs 2,98,217 crore at the end of the quarter, each up 27 per cent year on year. The mix of the loan book changed during the year. Retail loans excluding motor finance made up 49 per cent of the loan book, down from 50.4 per cent a year earlier. Motor finance made up 7.7 per cent, down from 11.6 per cent. Small and medium enterprise loans rose to 28.7 per cent, from 26.3 per cent, and corporate loans rose to 14.6 per cent, from 11.7 per cent.
Profit before tax rose 58 per cent year on year to Rs 2,380 crore in the quarter. Pre provisioning operating profit rose 33 per cent to Rs 3,025 crore. For the first half of financial year 2026-27, The company reported profit after tax of Rs 3,207 crore, up 54 per cent from Rs 2,087 crore a year earlier. Those half yearly figures show that the second quarter result was part of a stronger first half, not a single quarter gain.
Tata Capital asset quality stays stable
Tata Capital reported a gross Stage 3 ratio of 1.9 per cent at 30 September 2026 and a net Stage 3 ratio of 0.8 per cent. The provision coverage ratio was 58.6 per cent. Annualised credit cost fell to 0.9 per cent, from 1.3 per cent a year earlier. The cost to income ratio improved to 35.3 per cent, from 39.7 per cent a year earlier, and annualised operating expenditure on the average net loan book improved to 2.3 per cent, from 2.6 per cent.
Rajiv Sabharwal, managing director and chief executive officer of Tata Capital, said the loan book crossing Rs 3 lakh crore was a significant milestone for the company. He said the company remained focused on growth in a disciplined manner. The comment was given in the company’s statement on the results, which was published on 27 October 2026. The statement also set out the income, provision and loan book figures reported here.
Tata Capital is separate from Tata Consumer
Tata Capital should not be confused with Tata Consumer Products, which is a separate listed company in the Tata group that sells food and beverage products. The two companies share the Tata name and group ownership, but they operate in different businesses, report separate financial results and serve different customers. News reports on 27 October covered results from both companies, and readers should check the company name in each report before comparing figures.
For the company, the next test will be whether loan growth continues without a rise in credit costs. Loan growth of 26 per cent in assets under management and a fall in credit cost to 0.9 per cent in the quarter point to growth with stable asset quality in that period. If demand for retail, small business and corporate loans stays firm, the loan book could grow further. If credit costs rise, profit growth could slow even if income continues to rise. Tata Capital ended the second quarter with consolidated profit of Rs 1,660 crore and a loan book of Rs 3,08,030 crore.