Tata Capital Ltd.Strong Q1 Start with 56% PAT Growth

Tata Capital delivered an excellent start to FY27 with consolidated profit after tax surging 56% year-on-year to ₹1,547 crores, while assets under management grew 22% to ₹2.91 lakh crores, or 28% excluding the acquired Motor Finance business.

The company demonstrated strong execution across all key parameters with consolidated disbursements rising 33% year-on-year to ₹46,212 crores, driven by 50% growth in unsecured retail disbursements. Credit costs improved significantly to 1.0% from 1.6% in the prior year quarter, reflecting resilient asset quality. Management maintained its FY27-28 guidance, targeting 23-25% AUM growth, 10 basis points NIM expansion for FY27, and ROA improvement to 2.6% by FY28 through margin expansion and operating leverage.

The cost-to-income ratio improved 190 basis points sequentially to 36.4%, with a target of 33-34% by FY28. Strategic initiatives include entering the gold loan business through the Yogloans acquisition and leveraging AI transformation, which has delivered 40% productivity gains and 98% digital onboarding. The Housing Finance segment posted strong performance with 24% AUM growth and 29% PAT growth.