Highlights

• Ambit Capital has assigned a buy rating on Tata Capital with a target price of ₹377.
• Tata Capital Housing Finance reported a quarterly profit after tax of ₹440 crore in Q2 FY26, up 28% year-on-year.
• Tata Capital is participating in the GCF BEACON INDIA Programme with access to over USD 18 million in external funding alongside its own capital commitment.

Tata Capital (NSE:TATACAP) has received a buy rating from Ambit Capital Pvt Ltd, with the brokerage setting a target price of ₹377. The rating comes amid recent developments across the Tata Capital group, including expanded participation in climate-focused financing initiatives and updated financial disclosures from its housing finance subsidiary for the second quarter of FY26.

Participation in Global Climate Finance Programme

Recently, Tata Capital entered into a partnership under the Green Climate Fund’s BEACON INDIA Programme, marking a significant engagement with global climate finance mechanisms. Under this programme, the company is set to receive a revolving facility of approximately USD 15.85 million, along with an additional USD 3 million grant, aimed at improving access to financing for early-stage climate-focused start-ups in India.

The revolving structure enables reinvestment of repaid funds into new ventures, supporting continuity of funding over multiple cycles. Alongside the external funding, Tata Capital has committed USD 47.6 million of its own capital toward the initiative. The programme is being implemented in collaboration with the Small Industries Development Bank of India and TREC-STEP, targeting climate mitigation and adaptation efforts across the country.

Housing Finance Arm Reports Q2 FY26 Growth

Tata Capital Housing Finance Limited (TCHFL), a key subsidiary, reported its unaudited financial results for the quarter ended September 30, 2025. Assets under management rose by 30% year-on-year to ₹75,636 crore, compared with ₹58,257 crore in the corresponding quarter of the previous year. Net total income increased to ₹899 crore in Q2 FY26 from ₹655 crore a year earlier.

Profit after tax for the quarter reached ₹440 crore, representing a 28% year-on-year increase and marking the highest quarterly PAT reported by the housing finance arm to date. Profit before tax stood at ₹590 crore, up from ₹460 crore in Q2 FY25. Net interest income increased to ₹694 crore, while fee income rose sharply to ₹181 crore during the quarter.

Asset quality indicators remained stable, with gross stage 3 assets at 0.8% and net stage 3 assets at 0.3% as of September 30, 2025. The capital risk adequacy ratio stood at 17.5%, while the provision coverage ratio was reported at 55.6%.

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