Tata Capital arm Tata Capital Housing Finance to raise ₹650 crore via rights issue

Tata Capital Ltd Reports Positive Q3FY26 Results, ₹650.02 Crore Rights Issue Approved

Tata Capital Ltd, a non-banking financial company, has witnessed a decline in its shares by ₹3.25, or 0.96%, on the BSE, closing at ₹334.15 on Wednesday, February 25, 2026.

Key Highlights

• Tata Capital Housing Finance Ltd has approved the offer and issuance of equity shares on a rights basis to Tata Capital Ltd for an aggregate amount of ₹650.02 crore.
• The board of directors of Tata Capital Housing Finance has approved the issuance of equity shares of ₹10 each to Tata Capital.
• The rights issue will be undertaken in one or more tranches.

Third Quarter Results

Tata Capital's net profit rose 19.7% quarter-on-quarter to ₹790 crore, surpassing ₹660 crore in Q2FY26. Net interest income (NII) surged 44% QoQ to ₹2,541 crore, compared with ₹2,302 crore in the previous quarter.

Financial Performance

• Assets under management rose 26% year-on-year to ₹2,34,114 crore as of December 31, 2025.
• Net total income increased 33% year-on-year to ₹3,594 crore in Q3FY26.
• Comparable PAT increased by 39% year-on-year to ₹1,285 crore for Q3FY26.

"We witnessed sustained business momentum in Q3FY26, with broad-based growth across products. Excluding Motor Finance, AUM grew 26% year-on-year to ₹2,34,114 crore, and comparable PAT increased by 39% year-on-year to ₹1,285 crore for Q3FY26," Rajiv Sabharwal, Managing Director and CEO, Tata Capital, said.

Asset Quality

The company said that, including non-recurring items, PAT grew by 36% year-on-year to ₹1,258 crore. On the asset quality front, Gross non-performing assets and net non-performing assets stood at 1.6% and 0.6%, respectively, as of December 2025.

Sabharwal said that credit quality continued to remain robust, with early leading indicators reflecting stable portfolio performance across segments. "Unsecured retail disbursements, which were moderated earlier as a prudent risk measure, have seen a gradual uptick, with slippages coming down. Our distribution network and strategic focus on digital and GenAI capabilities, continue to drive operating efficiencies," he added.