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

Non-banking financial company Tata Capital Ltd (TCL) on Wednesday (February 25) said its wholly owned subsidiary, Tata Capital Housing Finance Ltd (TCHFL), has approved the offer and issuance of equity shares on a rights basis to its parent company 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. Tata Capital said it received intimation regarding the approval from Tata Capital Housing Finance on February 25, 2026.

Third Quarter Results

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

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Assets under management rose 26% year-on-year to ₹2,34,114 crore as of December 31, 2025, compared with ₹1,86,404 crore as of December 31, 2024. Net total income increased 33% year-on-year to ₹3,594 crore in Q3FY26, up from ₹2,711 crore in Q3FY25.

"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.

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.

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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.

Shares of Tata Capital Ltd ended at ₹334.15, down by ₹3.25, or 0.96%, on the BSE.