Financial Performance Overview

Tata Capital Limited reported strong financial results for Q2FY27 with significant growth across key metrics. The company achieved a major milestone with its loan book crossing ₹3 trillion, underscoring the scale and diversification of its franchise.

Consolidated Performance Highlights

AUM and Loan Book Growth:

  • Assets Under Management (AUM) grew by 26% YoY to ₹3,08,030 crore as of September 30, 2026 from ₹2,43,896 crore as of September 30, 2025
  • Excluding Motor Finance, AUM grew by 32% YoY
  • Gross loan book increased by 27% YoY to ₹3,03,739 crore
  • Net loan book increased by 27% YoY to ₹2,98,217 crore

Revenue Performance:

  • Net total income grew by 24% YoY to ₹4,676 crore in Q2FY27 from ₹3,774 crore in Q2FY26
  • Net interest income increased by 23% YoY to ₹3,696 crore
  • Fee income grew by 9% YoY to ₹725 crore
  • Investment income showed remarkable growth of 143% YoY to ₹255 crore

Profitability Metrics:

  • PAT grew by 51% YoY to ₹1,660 crore in Q2FY27 from ₹1,097 crore in Q2FY26
  • Pre-provisioning operating profit increased by 33% YoY to ₹3,025 crore
  • Profit before tax grew by 58% YoY to ₹2,380 crore

Efficiency Ratios:

  • Annualized opex on average net loan book improved to 2.3% in Q2FY27 vs. 2.6% in Q2FY26
  • Cost to income ratio improved significantly to 35.3% in Q2FY27 vs. 39.7% in Q2FY26
  • Annualized credit cost reduced to 0.9% in Q2FY27 vs. 1.3% in Q2FY26

Return Ratios:

  • Annualized ROA improved to 2.3% in Q2FY27 vs. 1.9% in Q2FY26
  • Excluding Motor Finance, annualized ROA at 2.5% in Q2FY27 vs. 2.2% in Q2FY26
  • Annualized ROE improved to 14.0% in Q2FY27 vs. 13.0% in Q2FY26

Asset Quality:

  • Gross Stage 3 (GS3) ratio stood at 1.9% as of September 30, 2026
  • Net Stage 3 (NS3) ratio stood at 0.8%
  • Provision Coverage Ratio (PCR) was 58.6%

Capital Position:

  • Total equity stood at ₹47,778 crore as of September 30, 2026
  • Capital risk adequacy ratio was 17.3%

Business Composition

  • Retail + SME constitutes 85.4% of Net AUM
  • High-margin retail forms approximately 25% of Net AUM
  • Pan India network of 1,515 branches across 26 states and union territories

Half-Yearly Performance (H1FY27)

  • AUM grew by 26% YoY to ₹3,08,030 crore
  • Net total income grew by 23% YoY to ₹9,132 crore
  • PAT grew by 54% YoY to ₹3,207 crore

Tata Capital Housing Finance Ltd. (TCHFL) Performance

TCHFL, a 100% wholly owned housing finance company and material subsidiary, reported strong results:

AUM Growth:

  • Assets under management grew by 26% YoY to ₹95,098 crore as of September 30, 2026 from ₹75,636 crore as of September 30, 2025

Financial Performance:

  • Net total income increased by 21% YoY to ₹1,089 crore in Q2FY27
  • PAT increased by 26% YoY to ₹552 crore in Q2FY27
  • Profit before tax increased by 26% YoY to ₹741 crore

Efficiency Metrics:

  • Cost to income ratio improved to 30.0% in Q2FY27 vs. 32.9% in Q2FY26
  • Annualized credit cost was 0.1% in Q2FY27

Return Ratios:

  • Annualized ROA at 2.5% in Q2FY27 vs. 2.4% in Q2FY26
  • Annualized ROE at 18.0% in Q2FY27 vs. 18.5% in Q2FY26

Asset Quality:

  • GS3 at 0.7% | NS3 at 0.3% | PCR at 57.3% as of September 30, 2026
  • Capital adequacy ratio was 17.6% as of September 30, 2026

Management Commentary

Mr. Rajiv Sabharwal, Managing Director & CEO, highlighted the significant milestone of crossing ₹3 trillion loan book, underscoring the scale, diversification and resilience of the franchise. He emphasized the company's focus on AI-led capabilities:

  • More than 70% of retail applications are now processed through AI
  • AI-assisted underwriting adopted across 95%+ of Personal Loan and Business Loan cases, improving processing turnaround time by over 39%
  • AI-powered operations platform achieved adoption across over 95% of Business Loan, Two-Wheeler and Micro Finance workflows
  • AI agents handle significant share of customer interactions and early-bucket collections

On macroeconomic environment, he noted that while global uncertainties warrant continued vigilance, India's strong economic fundamentals, structural growth drivers, and rising credit penetration continue to create significant long-term opportunities. The company remains focused on pursuing growth in a disciplined manner while maintaining strong risk management and balance sheet resilience.

Company Background

Tata Capital Limited is the flagship financial services company of the Tata Group and a subsidiary of Tata Sons Private Limited. It is registered with RBI as an NBFC-ICC and categorized as an Upper Layer NBFC. TCL offers over 25 lending products and has an international rating of BBB (Stable) by both S&P Global Ratings and Fitch.