Tata Capital on Tuesday reported an 11% sequential rise in its net profit to Rs 1,097 crore for the quarter ended September, marking its first quarterly results after listing.
The net interest income rose 5% on quarter to Rs 3,004 crore. The figures reflect the impact of its acquisition of Tata Motors Finance, completed on May 8, and are presented on a sequential basis. “Following the Motor Finance acquisition, our focus has been on stabilising key business metrics before accelerating growth. The integration is progressing well and remains on track with our plan,” Rajiv Sabharwal, managing director and CEO, said in a release.
“We have transitioned to a multi-OEM model and realigned the AUM mix towards used vehicles and small & light commercial vehicles. The underwriting and collection frameworks have been further strengthened. We aim to achieve a turnaround in the motor finance business and return to profitability by Q4FY26,” he said.
Assets under management grew 3% on a sequential basis to Rs 2.44 lakh crore as on September 30 and the net loan book was up 3% to Rs 2.35 lakh crore. The retail and the small and medium enterprise book forms 88% of the gross loan book, with unsecured retail forming 11.6%.
In terms of the asset quality, the gross Stage 3 assets stood at 2.2% and the net stage 3 assets stood at 1.1% as on September 30. The capital adequacy ratio stood at 17.3%, and 21.5% including the IPO proceeds. On the NSE, shares of Tata Capital closed 0.5% higher at Rs 330.60 on Tuesday.