Tata Capital Shares Hit Record High After Q3 Results

Shares of Tata Capital Ltd. touched a fresh lifetime high on Tuesday before paring gains, after analysts raised their target prices following the company’s in-line third-quarter performance for the current financial year.

The stock movement came amid broader market weakness, highlighting investor confidence in the NBFC’s earnings outlook, asset quality improvement and growth strategy.

Stock Performance: Tata Capital Hits New Lifetime High

Intraday Movement and Market Comparison

The non-banking financial company’s stock rose as much as 1.96 per cent during the session to a record high of ₹367.3 per share, marking its biggest intraday gain since January 14 this year.

Later, Tata Capital shares pared gains to trade 0.2 per cent higher at ₹360.2, even as the Nifty 50 declined 0.40 per cent as of 10:44 AM.

Volume, Market Cap and Year-to-Date Performance

• The stock has risen for the fourth consecutive session

• Trading volume stood at 2.5 times the 30-day average (Bloomberg data)

• Shares are up 4.5 per cent in 2026 so far

• Nifty 50 has declined 2.3 per cent in the same period

• Tata Capital’s total market capitalisation stands at ₹1.51 trillion

Tata Capital Q3 Results: Key Financial Highlights

Profit and Income Growth

Tata Capital reported a 36 per cent year-on-year (Y-o-Y) increase in profit to ₹1,285 crore in the October–December quarter, compared to ₹922 crore in the same period last year.

• Net total income: ₹3,594 crore

• Y-o-Y income growth: 33 per cent

Loan Book and AUM Growth

• Gross loan book: ₹2.29 trillion (up 23 per cent Y-o-Y)

• Assets under management (AUM): ₹2.34 trillion as of December 31, 2025

• AUM growth: 26 per cent Y-o-Y

Segment-Wise AUM Mix

The SME segment accounts for the largest share in Tata Capital’s AUM, standing at ₹70,549 crore.

Analyst Commentary on Tata Capital Q3 Earnings

Emkay Global on Tata Capital

Emkay Global said Tata Capital continues to recalibrate its asset mix towards higher-yield and more granular segments, including:

• Unsecured retail

• Small and medium enterprises

• Affordable housing

• Loan against property

• Used commercial vehicles

The brokerage noted that stress in unsecured retail has largely eased, with collection efficiency improving across products.

Credit Cost Outlook

Management expects credit costs to:

• Remain at 1–1.2 per cent in FY26

• Fall below 1 per cent by FY28 over the medium term

Emkay Global retained its ‘Add’ rating on the stock and raised its target price to ₹380 from ₹360.

JM Financial on Asset Quality Improvement

JM Financial highlighted improvements in asset quality during the quarter, citing:

• A decline in slippages

• Lower write-offs

• Moderation in credit costs by around 10 basis points to 1.2 per cent

The brokerage said management reiterated all guidance provided during the inaugural earnings call and added that it has broadly maintained its estimates.

JM Financial maintained an ‘Add’ rating and revised its target price to ₹385 per share.

Why Tata Capital Is Attracting Investor Interest

Key Growth Drivers

• Strong profit and income growth

• Rising AUM and loan book expansion

• Improving asset quality

• Stable and declining credit cost outlook

• Focus on higher-yield retail and SME segments

With Tata Capital consistently outperforming broader market indices, analysts believe the NBFC remains well-positioned for sustainable growth over the medium term.

(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. THINK WITH NICHE advises users to check with certified experts before taking any investment decisions.)