Tata Capital has announced robust financial results for the second quarter of FY27, reporting a consolidated AUM growth of 26% year-on-year, reaching INR3,08,030 crore. Profit after tax saw a significant increase of 51% year-on-year, amounting to INR1,660 crore. The company maintained stable asset quality with Gross Stage 3 assets at 1.9%, and its operating efficiency improved, with cost-to-income ratio declining to 35.3%.
Tata Capital Reports Strong Q2 FY27 Performance
Tata Capital Limited has announced its financial results for the second quarter of FY27, highlighting strong growth across key metrics. The consolidated Assets Under Management (AUM) crossed the INR3 lakh crore milestone, growing by a substantial 26% year-on-year to stand at INR3,08,030 crore. Sequentially, AUM grew by 6%. Excluding the motor finance business, AUM growth was even stronger at 32% year-on-year.
Profitability and Efficiency Gains
Profitability saw a significant boost, with Profit After Tax (PAT) for the quarter increasing by 51% year-on-year to INR1,660 crore, and up 7% sequentially. The return on assets (ROA) stood at 2.3%, and excluding motor finance, it was 2.5%. Return on Equity (ROE) crossed 14%. The company also reported improved operating efficiency, with the cost-to-income ratio declining by 438 basis points year-on-year to 35.3%.
Resilient Asset Quality
Asset quality remained resilient, with Gross Stage 3 assets remaining stable at 1.9% as of September 2026. The provision coverage ratio improved to 59%, and the annualized credit cost declined to 0.9% in Q2 from 1.0% in Q1. Retail and SME businesses continue to be central to the strategy, accounting for approximately 85.4% of the consolidated AUM.
Housing Finance Performance
Tata Capital Housing Finance demonstrated a strong trajectory, with AUM reaching INR95,098 crore, an increase of 26% year-on-year and 6% sequentially. PAT for the quarter stood at INR552 crore, with ROA at 2.5% and ROE at 18.0%. The affordable and micro-housing portfolio within this segment grew by 22% year-on-year.
Digital and AI Initiatives
The company highlighted its continued investment in technology and AI, with 99% of customers being digitally onboarded and 98% of retail disbursements supported by digital decisioning. AI is being integrated across various functions to enhance customer experience, productivity, and risk management.
Outlook and Guidance
Tata Capital remains focused on building a resilient franchise and is on track to deliver its guidance for growth. The company expects loan growth to be between 23% to 25% for FY27 and for the period FY25-FY28. Management expressed confidence in meeting its growth, cost-to-income, credit cost, PAT growth, ROA, and ROE targets.
Source: BSE
