Tata Capital Ltd Reports 11% Profit Growth in First Post-Listing Quarter, AUM Rises

Tata Capital Ltd, in its initial quarterly financial report since its recent stock market listing, announced strong performance for the July–September quarter of fiscal year 2026. The company's net profit saw an 11% increase quarter-on-quarter, reaching ₹1,097 crore, up from ₹990 crore in the preceding quarter. Net total income also experienced sequential growth of 4%, amounting to ₹3,774 crore. Assets Under Management (AUM) grew by 3% to ₹2,43,896 crore as of September 30, 2025.

The company highlighted that its retail and Small and Medium-sized Enterprises (SME) segments collectively form approximately 88% of its gross loan book, with retail unsecured loans contributing 11.6%. Rajiv Sabharwal, Managing Director and CEO, stated that the quarter showed "broad-based momentum." He further noted that excluding the Motor Finance segment, AUM grew by 22% year-on-year, and Profit After Tax (PAT) rose by 33% to ₹1,128 crore, attributing this to a "diversified and well-managed portfolio."

A key focus for Tata Capital is the ongoing integration of the recently acquired motor finance business, completed in May 2025. The company aims to stabilize key business metrics and achieve a turnaround in the Motor Finance business, bringing it back to profitability by the fourth quarter of FY26. Tata Capital shares, which debuted on the stock exchange earlier this month, closed around their IPO price.

Impact: This news is significant for investors as it marks a positive start for Tata Capital following its listing. The consistent growth in profit, income, and AUM, along with a clear strategy for the acquired motor finance business, can boost investor confidence and potentially influence the stock's valuation. The company's diversified portfolio and targeted turnaround for a specific segment demonstrate strategic management. Impact Rating: 7/10

Difficult Terms: * Quarter-on-quarter (QoQ): A comparison of financial results from one quarter to the previous one. * Net Profit: The profit remaining after all expenses, taxes, and interest have been deducted from total revenue. * Net Total Income: The revenue generated by a company after deducting any direct expenses or returns. * Assets Under Management (AUM): The total market value of all assets that a financial institution manages on behalf of its clients. * Gross Loan Book: The total value of loans issued by a financial institution before any deductions for provisions or write-offs. * PAT (Profit After Tax): Same as Net Profit. * IPO (Initial Public Offering): The process by which a private company first sells shares of stock to the public, allowing it to raise capital. * Fiscal Year (FY): A 12-month period that companies and governments use for financial reporting and budgeting. For India, FY26 typically refers to the period from April 1, 2025, to March 31, 2026.