The company also reported a 23% YoY rise in net interest income (NII) to Rs 2,637 crore during the same period, excluding contributions from its Motor Finance business.
The company posted a robust performance across other key financial metrics. Assets under management (AUM) rose 22% YoY to Rs 2.15 lakh crore as of September 2025, up from Rs 1.76 lakh crore a year earlier. Net total income climbed 28% YoY to Rs 3,330 crore in Q2FY26.
Pre-provision operating profit surged 36% YoY to Rs 2,110 crore in the September quarter. The NII, including Motor Finance, increased 5% sequentially (QoQ) to Rs 3,004 crore. Tata Capital stated that while figures excluding Motor Finance are suitable for YoY and QoQ comparison, numbers including Motor Finance are best assessed on a sequential basis.
The company said the quarter was marked by broad-based momentum. According to Rajiv Sabharwal, Managing Director and CEO of Tata Capital, AUM growth—excluding Motor Finance—was driven by sustained growth across all business segments. He said this reflects the strength of Tata Capital’s diversified and well-managed portfolio.
Credit quality remained steady during the quarter, with the company reporting a 30 basis points drop in annualized credit cost compared to the same quarter last year. Annualized operating expense on average net loan book also improved to 2.3% in Q2FY26 from 2.4% in Q2FY25.On the macroeconomic front, the company noted that the recent GST reduction is expected to boost consumption and provide a favorable environment for higher growth in the second half of FY26. Sabharwal added that Tata Capital remains committed to maintaining momentum and delivering consistently for all stakeholders.The company also addressed its ongoing integration of the Motor Finance business, stating that its current focus is on stabilizing key business metrics before accelerating growth in that vertical.
Also read: Rekha Jhunjhunwala purchased 2.3 crore shares in this multibagger midcap bank before Blackstone’s entry
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)