The company also announced its entry into the gold loan business through the acquisition of Yogloans.
On a standalone basis, revenue increased 8.1% quarter-on-quarter to ₹8,822 crore from ₹8,162 crore, while net profit rose 11% to ₹1,628.1 crore from ₹1,466.2 crore. Excluding the motor finance business, AUM stood at ₹2,66,057 crore, up 28% year-on-year.
Net total income increased 23% year-on-year to ₹4,455 crore in the first quarter from ₹3,626 crore a year earlier. Retail and small and medium enterprise (SME) lending accounted for 85.4% of net AUM, while unsecured retail loans formed 10.3% of net AUM. The company said disbursements continued to show an uptick.
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The cost-to-income ratio improved to 36.4% from 36.8% a year ago, while annualised credit cost declined to 1.0% from 1.6%. Annualised return on assets (ROA) stood at 2.3%, compared with 1.8% a year earlier, while annualised return on equity (ROE) improved to 13.7% from 12.5%.
As of June 30, 2026, gross stage 3 assets stood at 1.9%, net stage 3 assets at 0.8%, and the provision coverage ratio (PCR) was 56.9%. Total equity stood at ₹46,237 crore, while the capital adequacy ratio was 18.5%. Tata Capital operated a network of 1,491 branches across 27 states and Union Territories.
Its wholly owned subsidiary, Tata Capital Housing Finance Ltd., reported a 24% year-on-year increase in AUM to ₹89,416 crore. Net total income rose 25% to ₹1,033 crore, while profit before tax increased 29% to ₹713 crore. Profit after tax also grew 29% to ₹532 crore.
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For the housing finance subsidiary, the cost-to-income ratio improved to 30.0% from 30.5%, while credit cost remained at ₹10 crore during the quarter. Annualised ROA stood at 2.5%, annualised ROE at 18.4%, gross stage 3 assets at 0.7%, net stage 3 assets at 0.3%, provision coverage ratio at 56.0%, and capital adequacy ratio at 17.8% as of June 30, 2026.
Rajiv Sabharwal, Managing Director & CEO, Tata Capital, said, “We commenced FY27 on a strong note, with healthy business momentum across our core franchises. Excluding Motor Finance, AUM grew 28% year on year to ₹2,66,057 crore.
Including Motor Finance, we achieved AUM growth of 22% year-on-year and PAT growth of 56% to ₹1,547 crore. Asset quality trends continue to remain encouraging, underpinned by prudent underwriting and healthy collection efficiencies.”
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Our entry into the gold loan business marks an important step in further diversifying Tata Capital’s retail lending portfolio. This business complements our existing product suite and offers significant long-term growth potential, supported by increasing customer preference for high-frequency, secured credit.
Going forward, we aim to combine Yogloans’ proven expertise with Tata Capital’s trusted brand, financial strength, technology and risk management capabilities, to scale the business further.”
Shares of Tata Capital Ltd ended at ₹354.95, up by ₹4.25, or 1.21%, on the BSE.
