Tata Capital Ltd.AUM tops ₹3 lakh Cr, profit up 51%, guidance held

Tata Capital's Q2 FY27 call, held on 27 October 2026, reported consolidated AUM of ₹3,08,030 crore, up 26% on the year and 6% on the quarter, and profit after tax of ₹1,660 crore, up 51%.

Return on assets was 2.3% and return on equity above 14%. Disbursements rose 29% to ₹51,665 crore, with high-margin businesses up 40% on disbursements and AUM growth in those businesses rising to 14% from 10%. Gross Stage 3 held at 1.9%, provision coverage rose to 59% and credit cost fell to 0.9% from 1.0%. Cost-to-income improved 438 basis points to 35.3% while headcount grew 6% against AUM growth of 26%. Net interest margin slipped about 10 basis points, half from funding costs and half from price competition in prime home loans, and the asset-liability committee raised lending rates by 20 to 25 basis points from 1 November.

Management held all guidance, expects the Motor Finance book to stabilise in Q3 and grow from Q4, and plans to raise capital in the second half of FY28. It could not size the hit from draft insurance commission rules.