Tata Capital has announced its financial results for the second quarter of fiscal year 2027 (Q2FY27), reporting a significant 51% year-on-year growth in Profit After Tax (PAT) to ₹1,660 crore. The company also saw its Assets Under Management (AUM) grow by 26% YoY to ₹3,08,030 crore. Key highlights include stable asset quality with a credit cost of 0.9% and an annualized ROA of 2.3%.
Tata Capital Delivers Strong Q2FY27 Performance
Tata Capital Limited has released its unaudited financial results for the quarter and half-year ended September 30, 2026, showcasing robust growth and stable financial health. The company reported a Profit After Tax (PAT) of ₹1,660 crore for Q2FY27, marking a substantial 51% increase compared to the same period in the previous year (Q2FY26). On a quarter-on-quarter basis, PAT saw a 7% rise.
Key Financial Highlights
Assets Under Management (AUM)
The Assets Under Management (AUM) for Tata Capital reached ₹3,08,030 crore as of September 30, 2026. This represents a strong year-on-year growth of 26%. Excluding Motor Finance, the AUM stood at ₹2,84,439 crore, with a YoY growth of 32%. The net AUM addition in Q2FY27 was ₹17,528 crore on a quarter-on-quarter basis. Retail and SME segments continued to form a significant portion, constituting 85.4% of the Net AUM.
Profitability and Efficiency
The company’s PAT for Q2FY27 grew by 51% YoY to ₹1,660 crore. The annualized Return on Assets (ROA) stood at 2.3%, an improvement from 1.9% in Q2FY26. Excluding Motor Finance, ROA was 2.5%. The annualized Return on Equity (ROE) was reported at 14.0%. Operating efficiency also improved, with the Cost to Income ratio at 35.3%, down from 39.7% in Q2FY26.
Asset Quality
Tata Capital maintained stable asset quality in Q2FY27. The annualized credit cost was 0.9%, lower than 1.3% in Q2FY26. Gross Non-Performing Assets (GNPA) were at 1.9% in Q2FY27, compared to 2.2% in Q2FY26. Net Non-Performing Assets (NNPA) stood at 0.8%, down from 1.1% in Q2FY26.
Business Overview and Strengths
The investor presentation also highlighted Tata Capital’s business overview, product offerings, and key strengths. The company operates a diversified product suite and a ‘Phygital’ distribution model. Key strengths include its ‘Tata’ brand name, a comprehensive product suite, prudent risk culture, strong underwriting, digital capabilities, and a high credit rating. The company is also led by an experienced management team and adheres to strong governance standards.
Subsidiary Performance
The performance of its material subsidiary, Tata Capital Housing Finance Limited (TCHFL), was also detailed. TCHFL reported a 26% YoY growth in Net AUM to ₹95,098 crore and a 26% YoY growth in PAT to ₹552 crore. TCHFL also showcased best-in-class asset quality with an annualized credit cost of 0.1% and GNPA at 0.7%.
Financial Performance Summary
Detailed financial performance summaries for both consolidated and TCHFL operations were provided, outlining key metrics such as net interest income, operating expenses, profit before tax, and various ratios including Cost to Income, Credit Cost, GNPA, and ROA/ROE over multiple fiscal years.
Source: BSE
