Tata Capital LimitedQ2 FY27 Results & Financial Update
Tata Capital Limited: Q2 FY27 consolidated results and company financials – revenue ₹9,341.81 Cr, PAT ₹1,831.88 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Tata Capital Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
During the second quarter of fiscal 2027, Tata Capital crossed a major operational milestone with its consolidated loan book surpassing the three trillion rupee mark, ending September 30, 2026, at Rs 3,03,739 crore for the gross loan book.
Consolidated assets under management expanded by 26% year-on-year to reach Rs 3,08,030 crore, up from Rs 2,43,896 crore in the corresponding period of the previous year. Excluding the motor finance segment, AUM registered an even faster growth rate of 32% year-on-year.
The growth in profitability was supported by an expansion in net total income, which increased 24% year-on-year to Rs 4,676 crore, driven by a 23% rise in net interest income to Rs 3,696 crore and a 143% increase in investment income to Rs 255 crore.
Operating efficiency improved as the annualized operating expense ratio on the average net loan book moderated to 2.3% compared with 2.6% in Q2 FY26, bringing the cost-to-income ratio down to 35.3% from 39.7% in the year-ago quarter.
Asset quality metrics remained resilient and stable during the quarter, accompanied by lower loan losses and provisions of Rs 645 crore, representing a 17% decline compared to Rs 773 crore in Q2 FY26.
The company's distribution network spanned 1,515 branches across 26 states and union territories at the close of September 2026, supported by high capital adequacy with a Capital Risk Adequacy Ratio of 17.3%.
01 · Business model
What does Tata Capital do?
Tata Capital Limited is the flagship financial services company of the Tata Group and operates as a subsidiary of Tata Sons Private Limited, registered with the Reserve Bank of India as an Upper Layer Non-Banking Financial Company - Investment and Credit Company (NBFC-ICC).
The company conducts its core lending business alongside its material housing finance subsidiary, Tata Capital Housing Finance Limited (TCHFL), which is registered with the National Housing Bank as a Housing Finance Company classified as a Middle Layer NBFC.
Tata Capital offers a comprehensive product suite spanning over 25 lending categories, serving salaried and self-employed individuals, entrepreneurs, small and medium enterprises, and corporate clients across India.
Beyond direct lending, the company distributes third-party financial products including insurance and credit cards, provides wealth management services, and acts as a sponsor and investment manager for private equity funds.
02 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Total income | ₹9,356.11 Cr |
| Interest income | ₹8,376.12 Cr |
| Other income | ₹14.30 Cr |
| Provisions | ₹293.90 Cr |
| Profit before tax | ₹2,380.38 Cr |
| Profit after tax | ₹1,831.88 Cr |
| EPS | ₹3.91 |
03 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Net interest income expanded by 23% year-on-year to Rs 3,696 crore for Q2 FY27, up from Rs 3,006 crore in Q2 FY26, supported by strong asset growth across retail and SME portfolios.
Fee income grew by 9% year-on-year to Rs 725 crore in Q2 FY27, while investment income surged by 143% to Rs 255 crore, lifting net total income by 24% to Rs 4,676 crore.
Housing finance subsidiary TCHFL contributed substantially to overall expansion, with its net total income increasing by 21% year-on-year to Rs 1,089 crore.
NIM, spread, funding cost and credit cost
Cost-to-income ratio improved to 35.3% in Q2 FY27 from 39.7% in Q2 FY26, as operating expenses grew at a slower pace than net total income.
Annualized credit costs declined to 0.9% in Q2 FY27 compared to 1.3% in Q2 FY26, reflecting stable asset quality and prudent underwriting standards.
Annualized return on assets improved to 2.3% in Q2 FY27 from 1.9% in Q2 FY26 (or 2.5% excluding motor finance), while annualized return on equity rose to 14.0% from 13.0%.
04 · Loan growth, sanctions & disbursements
How the lending book is moving
Gross loan book crossed the three trillion rupee threshold to reach Rs 3,03,739 crore as of September 30, 2026, representing 27% growth year-on-year.
Total net AUM stood at Rs 3,08,030 crore at the end of Q2 FY27, up 26% year-on-year from Rs 2,43,896 crore.
05 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Retail and SME segments constitute 85.4% of net AUM, with high-margin retail products accounting for approximately 25% of net AUM.
Tata Capital Housing Finance Ltd. reported a 26% year-on-year increase in AUM to Rs 95,098 crore and a 26% growth in PAT to Rs 552 crore for Q2 FY27.
Geography and market mix
The company's distribution network reached 1,515 branches spread across 26 states and union territories as of September 30, 2026.
06 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
Tata Capital scaled AI-enabled capabilities across onboarding, underwriting, servicing, and collections, with over 70% of retail applications processed via AI and 95%+ adoption in personal and business loan underwriting.
07 · Reported developments
What changed operationally
Gross Stage 3 (GS3) ratio stood at 1.9% and Net Stage 3 (NS3) ratio at 0.8%, with a provision coverage ratio of 58.6% as of September 30, 2026.
08 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
The consolidated Capital Risk Adequacy Ratio stood at 17.3% as of September 30, 2026, while subsidiary TCHFL reported a capital adequacy ratio of 17.6%.
The company maintains a 'AAA with stable outlook' credit rating from CRISIL, ICRA, and CARE, alongside international ratings of BBB (Stable) from S&P Global Ratings and Fitch.
09 · Beyond the numbers
What changed beyond the numbers
Reported update
Operational Efficiency from AI Deployment
AI-assisted underwriting improved processing turnaround times by over 39%, while AI-powered workflow adoption exceeded 95% in business loan, two-wheeler, and micro-finance segments.
10 · Key Q&A
The quarter, answered directly
What does Tata Capital do?
Tata Capital Limited is the flagship financial services company of the Tata Group and operates as a subsidiary of Tata Sons Private Limited, registered with the Reserve Bank of India as an Upper Layer Non-Banking Financial Company - Investment and Credit Company (NBFC-ICC).
What is the clearest takeaway from Q2 FY27?
During the second quarter of fiscal 2027, Tata Capital crossed a major operational milestone with its consolidated loan book surpassing the three trillion rupee mark, ending September 30, 2026, at Rs 3,03,739 crore for the gross loan book.
What drove earnings or loan-book movement?
Net interest income expanded by 23% year-on-year to Rs 3,696 crore for Q2 FY27, up from Rs 3,006 crore in Q2 FY26, supported by strong asset growth across retail and SME portfolios.
What mattered most for margins, funding or credit cost?
Cost-to-income ratio improved to 35.3% in Q2 FY27 from 39.7% in Q2 FY26, as operating expenses grew at a slower pace than net total income.
What changed operationally beyond the headline numbers?
Tata Capital scaled AI-enabled capabilities across onboarding, underwriting, servicing, and collections, with over 70% of retail applications processed via AI and 95%+ adoption in personal and business loan underwriting.
What should the next disclosure help confirm?
Monitor the trajectory of Gross and Net Stage 3 asset quality ratios alongside provision coverage levels across upcoming quarters.
11 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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12 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality and Provision Coverage: Monitor the trajectory of Gross and Net Stage 3 asset quality ratios alongside provision coverage levels across upcoming quarters.
- 02
Credit Growth Momentum: Track gross loan book expansion relative to the Rs 3-trillion milestone achieved in Q2 FY27 across retail, SME, and housing finance segments.
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