Tata Capital Q1 Net Profit Rises 56% YoY to ₹1,547 Cr Amid Strong Lending Growth

Tata Capital reported a 56% year-on-year (YoY) rise in consolidated net profit for the first quarter of FY27, supported by healthy growth across its lending businesses. According to the company's quarterly results, consolidated profit stood at ₹1,547 crore for the April-June quarter, compared with ₹990 crore in the year-ago period.

Revenue from operations increased 15% YoY to ₹8,822 crore from ₹7,665 crore a year earlier. Assets under management (AUM) rose 22% YoY to ₹2.91 lakh crore, while the company's net worth grew 42% to ₹46,261 crore.

Excluding the motor finance business, AUM grew 28% YoY. Net interest income rose 25% to ₹2,866 crore, while the net loan book increased 23% to ₹2.29 lakh crore during the quarter.

Asset Quality Remains Healthy

Tata Capital said its profitability and operational metrics also improved during the quarter. Net profit margin rose to 17.54% from 12.92% a year ago, although it moderated from 18.41% in the previous quarter.

The company's annualised return on assets improved to 2.3% from 1.8% in the corresponding quarter last year, while annualised return on equity increased to 13.7%. Its capital adequacy ratio stood at 18.5%, reflecting a strong capital position.

"We commenced FY27 on a strong note, with healthy business momentum across our core franchises," Managing Director and CEO Rajiv Sabharwal said. He added that asset quality trends remained encouraging, supported by prudent underwriting and healthy collection efficiencies.

AI, Gold Loans to Drive Next Phase of Growth

Commenting on the company's performance, Managing Director and CEO Rajiv Sabharwal said Tata Capital started FY27 on a strong note, supported by healthy business momentum across its core businesses. "Asset quality trends continue to remain encouraging," he said, attributing the performance to prudent underwriting and healthy collection efficiencies.

Sabharwal said the company's planned entry into the gold loan business through Yogloans would help diversify its retail lending portfolio. "Our entry into the gold loan business marks an important step" in expanding Tata Capital's retail lending offerings, he said, adding that the company plans to combine Yogloans' expertise with Tata Capital's technology, brand and risk management capabilities to scale the business.

He also said artificial intelligence (AI) and digital capabilities remain central to Tata Capital's growth strategy, helping improve productivity across lending, underwriting, operations, collections and customer servicing. Sabharwal added that supportive liquidity conditions and resilient domestic demand continue to provide a favourable backdrop for growth despite global uncertainties.