Date: July 28, 2026

Consolidated Financial Performance Q1FY27

Key Financial Metrics

Tata Capital reported strong consolidated performance for Q1FY27 with Assets Under Management (AUM) reaching ₹2,90,502 crore, representing 22% year-on-year growth from ₹2,37,508 crore in Q1FY26. Excluding Motor Finance, AUM grew by 28% YoY to ₹2,66,057 crore.

Net total income increased by 23% YoY to ₹4,455 crore in Q1FY27 from ₹3,626 crore in Q1FY26. Profit After Tax (PAT) showed significant growth of 56% YoY to ₹1,547 crore from ₹990 crore in Q1FY26.

Asset Quality and Ratios

Asset quality remained robust with Gross Stage 3 (GS3) at 1.9%, Net Stage 3 (NS3) at 0.8%, and Provision Coverage Ratio (PCR) at 56.9% as of June 30, 2026. Annualized credit costs improved to 1.0% in Q1FY27 compared to 1.6% in Q1FY26.

Return ratios showed improvement with annualized Return on Assets (ROA) at 2.3% in Q1FY27 versus 1.8% in Q1FY26. Excluding Motor Finance, annualized ROA stood at 2.5% in Q1FY27 compared to 2.1% in Q1FY26. Annualized Return on Equity (ROE) improved to 13.7% from 12.5% YoY.

Operational Efficiency

Cost to income ratio improved to 36.4% in Q1FY27 from 36.8% in Q1FY26. Annualized operating expenses on average net loan book remained stable at 2.4% in both Q1FY27 and Q1FY26.

Business Composition

Retail + SME segments constituted 85.4% of Net AUM, while unsecured retail formed 10.3% of Net AUM. The company maintained a pan-India network of 1,491 branches across 27 states and union territories.

Capital Position

Total equity stood at ₹46,237 crore as of June 30, 2026. Capital risk adequacy ratio was strong at 18.5% as of June 30, 2026.

Tata Capital Housing Finance Ltd (TCHFL) Performance

Subsidiary Financials

Tata Capital Housing Finance Ltd, a 100% wholly owned housing finance company, reported AUM growth of 24% YoY to ₹89,416 crore as of June 30, 2026 from ₹71,913 crore as of June 30, 2025.

Net total income increased by 25% YoY in Q1FY27 to ₹1,033 crore from ₹828 crore in Q1FY26. PAT grew by 29% YoY to ₹532 crore from ₹412 crore in Q1FY26.

Subsidiary Asset Quality and Ratios

TCHFL maintained excellent asset quality with GS3 at 0.7%, NS3 at 0.3%, and PCR at 56.0% as of June 30, 2026. Credit costs remained very low at ₹10 crore (annualized 0.05% of average net loan book).

Return ratios were strong with annualized ROA at 2.5% in Q1FY27 versus 2.4% in Q1FY26, and annualized ROE stable at 18.4% in both periods. Cost to income ratio improved to 30.0% in Q1FY27 from 30.5% in Q1FY26. Capital adequacy ratio stood at 17.8% as of June 30, 2026.

Strategic Initiatives

Gold Loan Business Entry

Tata Capital announced its foray into the gold loan business through the acquisition of Yogloans. This strategic move aims to diversify Tata Capital's retail lending portfolio and leverage increasing customer preference for high-frequency, secured credit.

Technology and Digital Transformation

The company emphasized that artificial intelligence and digital capabilities continue to be core enablers of growth strategy. Technology investments are delivering benefits across origination, underwriting, operations, collections, and servicing. The company achieved 22% YoY AUM growth with only ~5% headcount increase, reflecting significant productivity gains.

Management Commentary

Mr. Rajiv Sabharwal, Managing Director & CEO, commented on the strong Q1FY27 performance driven by healthy business momentum across core franchises. He highlighted the company's focus on combining Yogloans' expertise with Tata Capital's brand strength, financial capabilities, and risk management to scale the gold loan business.

Management noted that the macroeconomic environment remains favorable with supportive liquidity conditions and resilient domestic demand providing a strong foundation for economic growth.

Financial Tables Summary

Consolidated Performance (₹ crores)

| Metric | Q1FY26 | Q4FY26 | Q1FY27 | YoY % |

| AUM (net) | 2,37,508 | 2,77,275 | 2,90,502 | 22% |

| Gross loan book | 2,33,399 | 2,73,392 | 2,86,381 | 23% |

| Net loan book | 2,28,579 | 2,68,203 | 2,81,083 | 23% |

| Net interest income | 2,866 | 3,477 | 3,571 | 25% |

| Fee income | 576 | 701 | 692 | 20% |

| Net total income | 3,626 | 4,146 | 4,455 | 23% |

| PAT | 990 | 1,502 | 1,547 | 56% |

TCHFL Performance (₹ crores)

| Metric | Q1FY26 | Q4FY26 | Q1FY27 | YoY % |

| AUM (net) | 71,913 | 86,653 | 89,416 | 24% |

| Net total income | 828 | 1,016 | 1,033 | 25% |

| PAT | 412 | 527 | 532 | 29% |