Tata Capital reported a 56% rise in quarterly profit to ₹1,628 crore, driven by higher lending income and lower credit costs. Revenue grew 15.1% to ₹8,822 crore, while asset quality improved with gross non-performing assets falling to 2.45%.
Detailed Coverage
Tata Capital has posted a strong start to the new financial year, with its consolidated profit for the quarter ending June 30, 2026, climbing 56% to ₹1,628 crore. The company’s revenue from operations reached ₹8,822 crore, a 15.1% increase compared to the same period last year. This growth was primarily fueled by an expansion in the company's lending activities across both retail and corporate segments, supported by a decline in the money set aside for potential loan losses.
The company’s asset quality also showed progress during the quarter. Gross non-performing assets—a measure of bad loans—fell to 2.45%, down from 2.62% a year ago. Net non-performing assets similarly improved to 1.07% from 1.24% in the previous year. To protect against potential future risks, the firm increased its provision coverage ratio to 56.99%, indicating a more cautious approach to loan security. The company's capital adequacy ratio, which measures its ability to absorb financial shocks, stood at 18.46%, suggesting a stable financial position to support ongoing lending.
As part of its growth strategy, Tata Capital continues to pursue the acquisition of Yogakshemam Loans Ltd, a non-banking financial company focused on gold-backed loans. This deal, which is still subject to regulatory approval, is intended to help the company increase its share of secured lending products. In terms of governance, the company has re-appointed Sarita Kamath as its Chief Compliance Officer for another three-year term, ensuring continuity in its regulatory oversight.
Investors looking ahead may monitor the progress of the Yogloans acquisition and its impact on the company’s overall loan book. Additionally, maintaining asset quality while expanding the lending portfolio remains a key factor for the firm as it navigates the competitive financial services sector. The company also confirmed that funds raised from its recent initial public offering are being deployed toward strengthening its capital base and funding future loan growth.