Event Type and Timing:

  • The document contains transcripts for both a Media Conference Call and an Earnings Conference Call with Analysts and Investors held on July 28, 2026, discussing the Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026 (Q1 FY27).
  • The media call was hosted by Mr. Rajiv Sabharwal (Managing Director and CEO), while the earnings call was hosted by Ambit Capital with participation from Mr. Rajiv Sabharwal, Mr. Rakesh Bhatia (CFO), and Mr. Sandeep Tripathy (Head of Strategy & Investor Relations).

Purpose and Context:

  • The events were scheduled after the earnings announcement to discuss Q1 FY27 financial performance, business updates, and strategic initiatives.
  • The stated purpose was to provide detailed insights into quarterly results, operational performance, asset quality, funding activities, and growth outlook.

Management Participants:

  • Media Call: Mr. Rajiv Sabharwal (Managing Director and CEO)
  • Earnings Call: Mr. Rajiv Sabharwal (MD & CEO), Mr. Rakesh Bhatia (CFO), Mr. Sandeep Tripathy (Head of Strategy & IR), with moderation by Mr. Raghav Garg from Ambit Capital

Availability of Materials:

  • The transcripts are available on the company's website at: https://www.tatacapital.com/about-us/investor-information-and-financials.html
  • References were made to an investor presentation deck during the call (specific slides mentioned: #13-15, #19, #22, #30, #34)

Compliance Statement:

  • The document is filed pursuant to Regulations 30 and 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • Standard disclaimer included stating that forward-looking statements are based on current expectations and actual results may differ materially

Financial Highlights Discussed:

  • Consolidated AUM: ₹2.91 lakh crore, up 22% YoY and 5% QoQ (28% YoY excluding Motor Finance business)
  • Profit After Tax: ₹1,547 crore, up 56% YoY and 3% QoQ
  • Asset Quality: Net NPA at 0.8% (down 10 bps QoQ), Gross Stage-3 at 1.9%, PCR at 57%
  • Credit Costs: 1.0% for Q1 FY27 vs 1.6% in Q1 FY26
  • ROA: 2.3% consolidated (2.5% excluding Motor Finance), ROE at 13.7%
  • Cost of Funds: 7.28%, increased from 7.15% in Q4 FY26
  • Cost-to-Income: 36.4%, improved by 190 bps from Q4 FY26
  • Capital Adequacy: 18.5% with CET1 strength
  • Liquidity Buffer: ₹29,000 crore
  • Borrowings: ₹2.45 lakh crore with diversified mix (Bank loans: 40%, NCDs: 33%, ECB/MTN: 11%, CP/WCDL: 8%)

Business Segment Performance:

  • Housing Finance: AUM ₹89,416 crore (up 24% YoY), PAT ₹532 crore (up 29% YoY), Net NPA 0.3%, Credit Cost 0.05%, ROA 2.5%, ROE 18.4%
  • Motor Finance: AUM ₹24,445 crore (measured growth approach due to macroeconomic uncertainties)
  • Retail & SME: Constitutes 85.4% of portfolio, targeted to remain between 85-88%
  • Distribution: 1,491 branches across 1,091 locations serving 8.8 million customers

Strategic Developments:

  • Yogloans Acquisition: Entry into gold loan business through acquisition of 88.6% stake in Yogloans at pre-money equity valuation of up to ₹318 crore with ₹93 crore primary capital infusion. Yogloans has AUM of ₹708 crore (March 2026), 162 branches, and 32,000 customers. Target to build ₹4,000-5,000 crore portfolio over 3 years with 500+ branches. Subject to RBI approval expected by end of CY2026.
  • International Bond Issuance: Successfully raised $400 million through 3.5-year fixed-rate senior unsecured Reg S bond at T-Bill plus 107 bps, oversubscribed 4x. Foreign borrowings now constitute 12.6% of total borrowings.

Technology and AI Initiatives:

  • 98% digital onboarding, AI-led underwriting processing 4 crore documents
  • 40% productivity gains in operations, 25% reduction in operating manpower cost per file
  • 70% Retail applications processed through AI-led workflows
  • 95% pre-delinquency outreach managed by AI-assisted bots
  • 12,000 employees trained on AI platforms

Guidance and Outlook:

  • FY28 Targets: 23-25% AUM growth, 2.6% ROA, 33-34% cost-to-income ratio
  • Expect NIM improvement of ~10 bps in FY27 despite 8-10 bps cost of funds increase
  • Credit cost guidance maintained at ~1%
  • Motor Finance business targeting 2% ROA by FY28

Additional Notes:

  • The document includes full transcripts of both conference calls with detailed Q&A sessions covering growth strategy, asset quality, segment performance, and macroeconomic outlook
  • The company emphasized its conservative risk approach and disciplined execution across businesses