Tata Group-Backed NBFC Reports 56% YoY Growth in Q1 FY27 Profit; AUM Surges 22%; Enters Gold Loan Business

On Tuesday, Indian equity benchmark indices traded marginally lower, with the benchmark Nifty 50 index declining 10.60 points, or 0.04 per cent, to close at 23,985.35. Despite the weak market sentiment, Tata Capital share price rose 1.26 per cent to Rs 354.95.

Tata Capital Q1 FY27 Consolidated Results

Tata Capital reported a strong financial performance for the quarter ended June 30, 2026. Consolidated Assets Under Management (AUM) increased 22 per cent YoY to Rs 2,90,502 crore from Rs 2,37,508 crore in the corresponding quarter last year. Excluding the Motor Finance business, AUM grew 28 per cent YoY to Rs 2,66,057 crore.

Net Total Income rose 22.86 per cent YoY to Rs 4,455 crore in Q1 FY27 from Rs 3,626 crore in Q1 FY26. Profit Before Tax (PBT) surged 56.04 per cent YoY to Rs 2,158 crore from Rs 1,383 crore, while Profit After Tax (PAT) attributable to owners jumped 56.26 per cent YoY to Rs 1,547 crore from Rs 990 crore in the year-ago period.

Business Performance

Retail and SME loans continued to dominate the company's portfolio, accounting for 85.4 per cent of net AUM, while unsecured retail loans represented 10.3 per cent of the portfolio. Tata Capital expanded its distribution network to 1,491 branches across 27 states and union territories during the quarter.

The company maintained operating efficiency, with the cost-to-income ratio improving to 36.4 per cent from 36.8 per cent a year earlier. Annualised credit cost declined to 1.0 per cent from 1.6 per cent, reflecting healthy asset quality. Annualised Return on Assets (ROA) improved to 2.3 per cent from 1.8 per cent, while annualised Return on Equity (ROE) increased to 13.7 per cent from 12.5 per cent.

Asset Quality and Capital Position

Tata Capital continued to maintain a strong balance sheet. Gross Stage 3 (GS3) assets stood at 1.9 per cent, while Net Stage 3 (NS3) assets were 0.8 per cent as of June 30, 2026. The Provision Coverage Ratio (PCR) stood at 56.9 per cent.

Total equity increased to Rs 46,237 crore, while the Capital Risk Adequacy Ratio remained healthy at 18.5 per cent, providing a strong capital base to support future growth.
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Enters Gold Loan Business

During the quarter, Tata Capital announced its entry into the gold loan business through the acquisition of Yogloans, subject to regulatory approvals and customary closing conditions. The company said the acquisition would further diversify its retail lending portfolio and strengthen its presence in secured retail credit.

Management Commentary

Managing Director & CEO Rajiv Sabharwal said the company began FY27 on a strong note with healthy business momentum across its core lending franchises. He highlighted that excluding Motor Finance, AUM grew 28 per cent YoY, while overall PAT increased 56 per cent. He also noted that artificial intelligence and digital capabilities continue to improve productivity across underwriting, operations, collections and customer servicing.

About Tata Capital

Tata Capital Limited is the flagship financial services company of the Tata Group and a subsidiary of Tata Sons. Registered with the Reserve Bank of India as an Upper Layer NBFC, the company offers more than 25 lending products, including home loans, personal loans, business loans, vehicle finance and wealth management services. Through its network of 1,491 branches across India, Tata Capital serves individuals, SMEs and corporates while maintaining AAA domestic credit ratings and investment-grade international ratings.

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Disclaimer: The article is for informational purposes only and not investment advice.