Tata Capital Limited – Investor Presentation Summary

Key Operational Highlights

  • Assets Under Management (AUM) reached ₹3,08,030 crore, crossing the ₹3 lakh crore milestone, up 26.3% YoY and 6.0% QoQ.
  • Net AUM addition in Q2FY27 was ₹17,528 crore quarter-on-quarter.
  • Customer franchise stood at 9.2 million as of September 2026, with approximately 0.4 million customers added during Q2FY27.
  • Retail + SME contribution remained stable at 85.4% of Net AUM.
  • Unsecured Retail loans formed 10.4% of Net AUM.
  • On-roll employees count stood at 31,655, with manpower growing at 6% YoY versus AUM growth of 26% YoY.
  • Distribution network included 1,515 branch locations across 26 states and union territories.

Key drivers of operational performance: Strong growth in high-margin retail products, digital transformation, and phygital distribution model.

Segment-wise Performance

  • Retail (excl. Motor Finance): Net AUM ₹1,51,077 crore (49.0% of total), with Home Loans at ₹48,163 crore (15.6% share, 17.2% YoY growth), Loan Against Property at ₹43,617 crore (14.2% share, 29.9% YoY growth), Personal Loans at ₹17,020 crore (5.5% share, 19.4% YoY growth), Business Loans at ₹11,056 crore (3.6% share, 21.2% YoY growth).
  • SME: Net AUM ₹88,500 crore (28.7% of total).
  • Corporate: Net AUM ₹44,862 crore (14.6% of total).
  • Motor Finance: Net AUM ₹23,591 crore (7.7% of total), declining 15.4% YoY.

Explanation of significant changes in segment performance: Growth driven by strong performance in secured retail products (LAP, HL) and SME segment, while Motor Finance business continued to decline as part of strategic transformation.

Financial Highlights

Revenue: Not explicitly stated as standalone revenue; Net Total Income: ₹4,676 crore for Q2FY27.

EBITDA: Not explicitly stated; Pre-provisioning operating profit: ₹3,025 crore for Q2FY27.

PAT: ₹1,660 crore for Q2FY27.

EPS: Not provided for current quarter; FY26 Basic EPS was ₹11.8.

Margins: Annualized Return on Assets (ROA) at 2.3%, Annualized Return on Equity (ROE) at 14.0%, Cost to Income ratio at 35.3%, Cost to Average Assets at 2.3%.

YoY/QoQ comparison: PAT grew 51% YoY and 7.3% QoQ; Net Interest Income grew 23% YoY to ₹3,696 crore.

Drivers of financial performance: Higher revenue growth, improved operational efficiency, lower credit costs, and stable asset quality.

Comparison to market estimates: Not provided.

Key Risks: Not explicitly disclosed in the presentation.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified in the presentation.

Domestic: Not specified.

Export: Not specified.

Regional Breakdown: Not available.

Balance Sheet Snapshot

Net Debt/Equity: Total Borrowings to Total Equity ratio at 5.5x as of September 2026.

Reserves: Not explicitly stated; Total Equity: ₹47,778 crore as of September 2026.

Current Assets/Liabilities: Not explicitly provided; Total Assets: ₹3,19,238 crore, Total Liabilities: ₹2,70,260 crore (including borrowings of ₹2,60,846 crore).

Working Capital/Leverage Metrics: Total Borrowings: ₹2,60,846 crore; Liquidity buffer: ₹36,398 crore on consolidated basis.

Financial Health Insights: Strong capital adequacy with CRAR well above regulatory requirements, comfortable liquidity position.

Capex & Cash Flow Health

Capital Expenditure: Not explicitly disclosed in the presentation.

Free Cash Flow: Not provided.

Operating Cash Flow: Not provided.

Net Debt Movement: Not explicitly disclosed; Average Cost of Borrowings was 7.3% in Q2FY27 (higher by 5bps sequentially).

Investment Rationale: Focus on digital transformation, technology upgrades, and strategic growth initiatives.

Strategic & R&D Initiatives

Investments in Innovation: Significant investments in AI-powered lending value chain, digital onboarding ecosystem, credit intelligence engine, and automated operations.

Expected impact on growth: AI implementation has resulted in 30-40% improvement in operational efficiency across various functions.

Strategic Rationale: Building an AI-first NBFC to improve customer experience, reduce cost to serve, and strengthen risk monitoring.

Industry Trends & Business Environment

Macro/Industry Trends: Not explicitly discussed in detail in the presentation.

Impact on Company: The company has maintained strong growth despite industry challenges, with improved asset quality and operational efficiency.

Management Commentary & Growth Outlook

Strategic Outlook: The presentation emphasizes the company's purpose as "Responsible Financial Partner Fulfilling India's Aspirations" with core values of delivering delight, capital & more, fast forward, lead with trust, better together, and futuready.

FY Guidance: Not explicitly provided in the presentation.

Market Share Targets: Not explicitly provided.

Risks and Opportunities: Not specifically highlighted in the presentation.

ESG Updates

  • Published maiden BRSR for FY26
  • 700+ Cleantech projects financed including 35 GW+ renewable capacity
  • 10% women in workforce
  • 8 lakh+ women empowered by MF Loans
  • 3.7+ million lives impacted by CSR projects
  • Strong governance with 5 out of 8 board members as independent directors (including 2 female independent directors)

Digital Transformation

  • Digitized entire loan lifecycle with 85%+ Account Aggregator penetration across retail products
  • AI-powered operations with 12,000+ employees trained in AI
  • Digital KYC adoption rates: 99% for PL, 2W, HL; 82% for car loans
  • Enterprise AI platform enabling rapid deployment of AI use cases across businesses