- Tata Capital will invest Rs 650 crore in Tata Capital Housing Finance via rights issue
- TCHFL recorded 30% asset growth to Rs 81,600 crore and 25% profit after tax increase
- Cost-to-income ratio improved by 114 basis points to 31.8% in Q3 of FY26
Tata Capital Ltd. will invest Rs 650 crore via a rights issue in wholly-owned subsidiary Tata Capital Housing Finance Ltd. The board of TCHFL on Wednesday approved the offer and issuance of equity shares of Rs 10 each on a rights basis in one or more tranches to the parent, according to a stock exchange filing.
The arm recorded 30% year-on-year growth in assets under management at Rs 81,600 crore, and 25% jump in profit after tax.
TCHFL continues to make meaningful progress on cost efficiency, with cost-to-income improving by 114 basis points to 31.8% in Q3 of FY26. On the asset quality front, Tata Capital Housing Finance remained healthy with credit costs of 0.1% and net NPA of 0.4% in the December quarter.
"These metrics combined with disciplined operations have positioned Tata Capital Housing Finance as one of the top performing HFCs in the country, delivering a stable ROA of 2.4% across all quarters of FY 26. We remain optimistic about sustaining this strong performance as we continue to execute our growth and margin strategies in the housing finance business," Rajiv Sabharwal, MD and CEO of Tata Capital, told analysts after the Q3 earnings.
Tata Capital shares ended 1% lower at Rs 334.15 on the BSE, after the announcement, compared to a flat Sensex. The stock is up just 1% since listing in October last year.
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