Tata Capital (TCL) has reported a robust second quarter for FY26, with strong momentum across business segments and its highest-ever quarterly profit after tax (PAT). The company’s consolidated PAT rose 33% year-on-year to Rs 11.28 illion, while assets under management (AUM), excluding Motor Finance, grew 22% over the same period.

According to Rajiv Sabharwal, Managing Director & CEO of Tata Capital, the quarter reflected the strength of a diversified and well-managed portfolio. “Q2FY26 was marked by broad-based growth and continued improvement in credit quality, with a 30-basis-point drop in annualized credit cost compared to Q1FY26. We continue to harness digital and GenAI capabilities to enhance customer experience and operational efficiency,” he said.

Sabharwal noted that recent macroeconomic developments, including the GST reduction, are expected to boost consumption and provide a favorable environment for higher growth in the second half of the fiscal year.

Tata Capital’s Motor Finance business, acquired from Tata Motors Finance Limited in May 2025, is progressing as planned. The company has transitioned to a multi-OEM model and realigned its portfolio mix toward used vehicles and small and light commercial vehicles. “Our focus has been on stabilizing key business metrics. Integration is on track, and we expect the Motor Finance business to return to profitability by Q4FY26,” Sabharwal added.

The company also extended a warm welcome to its new investors, expressing appreciation for their trust in the brand. “With this confidence comes responsibility,” the company said in a statement, reiterating its commitment to disciplined execution, prudence, and long-term value creation.

Tata Capital continues to strengthen its technology-led financial ecosystem, leveraging digital tools and AI-driven insights to drive efficiency and growth across lending, wealth management, and infrastructure finance segments.