Market check: Tata Capital's shares hover just above issue price
Tata Capital hit the stock market on October 13. Shares closed at ₹330.60 on October 28—just above the ₹326 issue price—after a pretty steady first couple of weeks.
Investors have been cautious, mostly because of the stock's premium valuation.
Analysts say Tata Capital will need to keep up strong financial performance for its shares to really take off.
Strong quarterly profit on the back of lending growth
Tata Capital is a major non-banking financial company (NBFC) offering loans and other financial services.
In July-September 2025 (Q2 FY26), it posted its highest-ever quarterly profit at ₹1,128 crore—a solid 33% jump from last year—thanks to growth in lending.
Its assets under management (AUM) grew by 22% (excluding Motor Finance).
The company is working to turn around its Motor Finance business by Q4FY26.
Other highlights from earnings call
CEO Rajiv Sabharwal pointed out that credit quality remained robust, with credit costs dropping to 1.1% annualized in Q2 FY26.
Tata Capital is also investing in digital tools and generative AI to make things smoother for customers and boost efficiency.
Plus, recent GST cuts could help drive more demand later this financial year.