Tata Capital shares in focus post Q2 results — Stock still near IPO price

Shares of Tata Capital Ltd. are in focus on Wednesday, October 29, after the company reported its second quarter earnings a day prior along with expectations of better Return on Assets (RoA) compared to current levels.

During the September quarter, Tata Capital's net profit increased by 11% to ₹1,097 crore from ₹990 crore in the previous quarter.

The company's Net Interest Income (NII) or core income increased by 4.8% from the previous quarter and 17.3% from the same quarter last year to ₹3,004 crore.

Provisions declined by 15% sequentially to ₹773 crore, while on a year-on-year basis, they went up by 44.7%.

Tata Capital's assets under management (AUM) stood at ₹2.43 lakh crore as of September 30, 2025, up 3% from ₹2.37 lakh crore on June 30, 2025.

The retail and SME segments constituted around 88% of its gross loan book, while the retail unsecured loans accounted for 11.6%.

Here's what the company has guided for the full financial year:

• AUM growth to be between 18% and 20%. Excluding Tata Motors Finance, the growth could be between 22% to 25%, from the current 22% growth.


• Credit costs to be nearly 1.2% from 1.3% currently.


• Cost-to-income ratio is said to be between 38% to 39% from 39.7% currently


• Return on Assets (RoA) may rise to 2% to 2.1% from 1.9%


• Net profit fell 3% this quarter, but management sees full year growth of 35%

Tata Capital MD & CEO Rajiv Sabharwal added that the integration of the recently-acquired motor finance business, which completed on May 8, 2025, is progressing well. Following the acquisition, the company's focus has been on stabilising key business metrics before accelerating growth, he said.

"We aim to achieve a turnaround in the Motor Finance business and return to profitability by Q4 FY26," Sabarwal added.

Shares of Tata Capital ended the previous session 0.5% up at ₹330.6 apiece, just marginally above its listing price of ₹330 per share. The stock listed on the exchanges earlier this month at a 1.23% premium to its IPO price.

Also Read: Shares of HDFC AMC, other asset managers in focus after SEBI proposes lower MF expense ratio