Non-banking financial company Tata Capital Ltd on Tuesday (October 27) reported a 51.32% year-on-year (YoY) increase in consolidated net profit to ₹1,660 crore for the second quarter of FY2027, compared with ₹1,097 crore in the year-ago period.
Revenue rose 20.7% YoY to ₹9,342 crore from ₹7,739 crore in the corresponding quarter last year.
Assets under management (AUM) grew 26% YoY to ₹3,08,030 crore as of September 30, 2026, compared with ₹2,43,896 crore a year earlier. Excluding motor finance, AUM growth stood at 32%. Retail and small and medium enterprise (SME) lending accounted for 85.4% of net AUM, with high-margin retail forming around 25%.
Net total income increased 24% YoY to ₹4,676 crore in Q2 FY2027 from ₹3,774 crore in the year-ago quarter. The annualised operating expenses-to-average net loan book ratio declined to 2.3% from 2.6%, while the cost-to-income ratio improved to 35.3% from 39.7%.
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Annualised credit cost declined to 0.9% from 1.3% in the corresponding quarter last year. Annualised return on assets (ROA) increased to 2.3% from 1.9%, while return on equity (ROE) rose to 14% from 13%. Excluding motor finance, annualised ROA stood at 2.5%, compared with 2.2% a year ago.
Asset Quality And Capital Position
As of September 30, 2026, gross stage 3 (GS3) assets stood at 1.9%, net stage 3 (NS3) assets at 0.8%, and the provision coverage ratio (PCR) at 58.6%. Total equity stood at ₹47,778 crore, while the capital adequacy ratio was 17.3%.
Tata Capital operated a pan-India network of 1,515 branches across 26 states and union territories.
Tata Capital Housing Finance Performance
Tata Capital Housing Finance Ltd (TCHFL), the company’s wholly owned housing finance subsidiary, reported a 26% YoY increase in assets under management to ₹95,098 crore as of September 30, 2026, from ₹75,636 crore a year earlier.
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Net total income grew 21% YoY to ₹1,089 crore in Q2 FY2027 from ₹898 crore in the year-ago quarter. The cost-to-income ratio improved to 30% from 32.9%, while annualised credit cost stood at 0.1%.
Profit before tax increased 26% YoY to ₹741 crore from ₹590 crore. Profit after tax (PAT) also rose 26% to ₹552 crore from ₹440 crore. Annualised ROA stood at 2.5%, compared with 2.4% a year earlier, while annualised ROE was 18%, against 18.5% in the year-ago quarter.
As of September 30, 2026, GS3 assets stood at 0.7%, NS3 assets at 0.3% and PCR at 57.3%. The subsidiary’s capital adequacy ratio was 17.6%.
Tata Capital To Expand Dollar Bond Programme
The company’s board approved an increase in its existing medium-term note (MTN) programme to $3 billion from $2 billion.
Subject to market conditions, Tata Capital may issue foreign currency bonds or debt instruments under the programme in one or more tranches through external commercial borrowings, in accordance with applicable laws and regulations and subject to necessary approvals and authorisations.
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Rajiv Sabharwal, Managing Director and CEO, Tata Capital said, “We achieved a significant milestone during the quarter, with our loan book crossing ₹3 trillion, underscoring the scale, diversification and resilience of our franchise.
Our AUM stood at ₹3,08,030 crore, up 26% year-on-year, while PAT grew 51% year-on-year to ₹1,660 crore. Excluding Motor Finance, AUM grew 32% year-on-year. Asset quality remained stable, reflecting our continued focus on portfolio quality, prudent underwriting and effective collections.
Artificial intelligence remains a core strategic priority for the organisation. During the quarter, we continued to scale AI-led capabilities across onboarding, operations, underwriting, servicing and collections.
More than 70% of retail applications are now processed through AI, while AI-assisted underwriting has been adopted across 95%+ of Personal Loan and Business Loan cases, improving processing turnaround time by over 39% and enhancing underwriting productivity.
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Our AI-powered operations platform has achieved adoption across over 95% of Business Loan, Two-Wheeler and Micro Finance workflows, delivering meaningful gains in productivity, turnaround time and operating efficiency.
In customer servicing and collections, AI agents now handle a significant share of customer interactions and early-bucket collections, enabling faster response times, wider customer reach and lower servicing cost. These capabilities are helping us enhance customer experience and build a more scalable growth platform for the future.
While global uncertainties and evolving market conditions warrant continued vigilance, India’s strong economic fundamentals, structural growth drivers, and rising credit penetration continue to create significant long-term opportunities. We remain focused on pursuing growth in a disciplined manner, while maintaining strong risk management and balance sheet resilience.”
Shares of Tata Capital Ltd ended at ₹300.80, up by ₹1.35, or 0.45%, on the BSE.