Tata Capital Share Price Jumps Nearly 5% After Q2 Profit Surges 51%

Tata Capital shares surged nearly 5% in Wednesday's trading as the company announced a significant jump in profits for the second quarter of the 2026-27 financial year. The stock, which had previously closed at ₹300.80, rose to an intraday high of ₹315.65 on the BSE, marking a 4.9% increase. Throughout the trading day, more than five million shares were exchanged on both the BSE and the National Stock Exchange (NSE).

The company's latest financial figures reveal a 51% increase in consolidated net profit to ₹1,660 crore for Q2, compared to ₹1,097 crore during the same quarter in the previous year. This growth in profit was coupled with a 26% increase in assets under management (AUM), showcasing the company's expanding lending portfolio. Net interest income (NII) surged by 23% to ₹3,700 crore, but analysts pointed out that net interest margins (NIM) have been declining for the fourth consecutive quarter, falling nine basis points to approximately 4.9%.

While the NIM decline is primarily attributed to a nine-basis-point increase in the cost of funds, largely due to external benchmark lending rates and repo-linked bank borrowings, Tata Capital's management remains optimistic. They have reaffirmed their financial guidance, projecting medium-term AUM growth of 23% to 25%. The management also expects the net interest margin to remain stable or slightly improve alongside fee income in the upcoming quarters, with a stronger recovery anticipated in the fourth quarter of FY27 due to adjustments in lending rates and an improved product mix.