Tata Capital's Motor Finance Business Records Profitability in Q4, Posts 51% PAT Growth

Tata Capital's Motor Finance Business Breaks Even in Q3, Sees Profitability in Q4

Tata Capital's managing director Rajiv Sabharwal reported that the company's motor finance business has achieved a major milestone by breaking even in the third quarter, resulting in profitability in Q4, following the merger with Tata Motors Finance.

The integration of Tata Motors Finance, which was completed in May 2025, has been a key focus area for Tata Capital. In a post-earnings media call, Sabharwal stated that the overall strategy to make the motor finance business profitable within the next three years is progressing as planned. The company has managed to break even in Q3 and has reported profits in Q4, with the expectation of continued growth in the coming quarters.

Tata Capital's efforts to ensure a smooth integration of Tata Motors Finance have paid off, with the company able to leverage the strengths built by Tata Motors Finance. The company has also made significant progress in reducing its dependence on a single manufacturer, with one fourth of its business now coming from other manufacturers beyond Tata.

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The non-banking finance company (NBFC) reported a significant year-on-year (YoY) jump in net profit to Rs 1,459 crore in Q4FY26, representing a 51 percent increase. The company's net assets under management (AUM) also grew 28 percent YoY to Rs 2.51 lakh crore.

Including the merged motor finance operations, Tata Capital's AUM stood at Rs 2.77 lakh crore, with quarterly profit at Rs 1,502 crore.