Tata Capital Ltd.Record AUM Growth, On Track for FY26 Targets

Tata Capital delivered a stellar Q3 FY26 performance, recording its highest-ever quarterly AUM growth of approximately ₹16,800 crores, driven by festive demand and GST reduction benefits.

Excluding Motor Finance, AUM reached ₹2.34 lakh crores, reflecting robust 26% year-on-year and 9% sequential growth. Profit after tax surged 39% year-on-year to ₹1,285 crores, while return on assets improved 30 basis points to 2.3%. The company remains firmly on track to meet its FY26 guidance of 18-20% AUM growth and sub-1% credit cost, with credit costs declining from 1.1% to 1.0% quarter-on-quarter. Housing Finance subsidiary continued its strong momentum with 30% AUM growth and maintained a stable 2.4% ROA.

Management confirmed unsecured retail recovery with disbursements up 30% year-on-year, while Motor Finance achieved breakeven in Q3. The company reaffirmed its medium-term guidance of 23-25% AUM growth for FY25-28 and cost-to-income ratio targets. Asset quality remained robust with net NPA stable at 0.6% and strong coverage levels.