Tata Capital reported a consolidated net profit of ₹1,547 crore for the quarter ended June 30, 2026 (Q1FY27), marking a significant 56% year-on-year increase from ₹990 crore in the corresponding period of FY26. This strong profitability surge was underpinned by a 23% rise in net total income to ₹4,455 crore and a 22% expansion in assets under management (AUM) to ₹2,90,502 crore. The results highlight effective yield management and operational leverage in the company’s first quarter as a listed entity post-Tata Motors Finance merger. Strategically, Tata Capital announced its entry into the gold loan business through the acquisition of Yogakshemam Loans Limited (Yogloans), subject to regulatory approvals.

Q1FY27 Financial Performance

The company’s net total income grew to ₹4,455 crore in Q1FY27, up from ₹3,626 crore in Q1FY26. Net interest income remained the primary revenue driver, contributing ₹3,571 crore, a 25% increase from ₹2,866 crore year-ago. Fee income also saw substantial growth, rising to ₹692 crore from ₹576 crore. Pre-provisioning operating profit (PPOP) increased 24% YoY to ₹2,835 crore. Operating expenses rose 21% to ₹1,621 crore, but the cost-to-income ratio improved slightly to 36.4% from 36.8%. Loan losses and provisions decreased 26% to ₹676 crore, reflecting lower credit costs at an annualized rate of 1.0%, down from 1.6% in Q1FY26.

| Metric: | Q1FY27 | Q1FY26 | Change | | ---: | :--- | :--- | :--- | | Consolidated Net Profit (PAT): | ₹1,547 crore | ₹990 crore | +56% | | Net Total Income: | ₹4,455 crore | ₹3,626 crore | +23% | | Net Interest Income: | ₹3,571 crore | ₹2,866 crore | +25% | | Fee Income: | ₹692 crore | ₹576 crore | +20% | | PPOP: | ₹2,835 crore | ₹2,291 crore | +24% | |

Asset Quality and Capital Adequacy

Tata Capital’s asset quality metrics showed sequential improvement. The Gross Non-Performing Assets (GNPA) ratio, reported as GS3, stood at 1.9% as of June 30, 2026, down from 2.1% in Q1FY26. The Net Non-Performing Assets (NNPA) ratio eased to 0.8% from 1.0%. The provision coverage ratio improved to 56.9%. The Capital Risk Adequacy Ratio stood at 18.5%, well above regulatory requirements, indicating a strong capital buffer. Total equity reached ₹46,237 crore. Return on Assets (annualized) improved to 2.3% from 1.8% in Q1FY26, while Return on Equity stood at 13.7%.

| Asset Quality Metric: | Q1FY27 | Change | | ---: | :--- | :--- | | GS3 (%): | 1.9% | Improved | | NS3 (%): | 0.8% | Improved | | PCR (%): | 56.9% | Improved | |

Subsidiary Performance and Strategic Developments

Material subsidiary Tata Capital Housing Finance Ltd. (TCHFL) also delivered strong results, with PAT increasing 29% YoY to ₹532 crore. TCHFL’s AUM grew 24% to ₹89,416 crore, maintaining best-in-class asset quality with GNPA at 0.7%. On July 28, 2026, the Board of Directors approved the unaudited standalone and consolidated financial results. The Board also announced the acquisition of Yogakshemam Loans Limited (Yogloans), an RBI-registered NBFC engaged in gold loans with over 160 branches in southern India and an AUM of over ₹700 crore as of March 31, 2026. This marks Tata Capital’s entry into the gold loan business, diversifying its retail lending portfolio.

What the Numbers Show

The divergence between revenue growth (23%) and expense growth (21%) highlights operational leverage, further aided by a significant drop in credit costs. With headcount increasing only ~5% while AUM grew 22%, Tata Capital is demonstrating significant productivity gains through AI-led automation, as noted by Managing Director & CEO Rajiv Sabharwal. The ex-Motor Finance AUM growth of 28% suggests that core retail franchises are driving the bulk of the expansion. Disbursements for high-margin products like personal and microfinance loans grew 38% YoY, signaling a shift towards higher-yielding assets despite a slower overall AUM growth of 10% in these segments due to portfolio normalization.

Tata Capital Limited has scheduled its 35th Annual General Meeting (AGM) for Wednesday, August 19, 2026, at 11:00 a.m. (IST), to be held via Video Conferencing or Other Audio Visual Means. The company issued an intimation under Regulation 30 of the SEBI Listing Regulations regarding the availability of its Annual Report for FY 2025-26, ensuring shareholders without registered email addresses can access the document through a provided web-link or QR code. This update ensures compliance with regulatory disclosure norms and facilitates shareholder participation in key corporate decisions.

The AGM agenda includes the adoption of audited financial statements for FY 2025-26, the declaration of a final dividend of ₹0.57 per equity share, and the re-appointment of M/s. T. P. Ostwal & Associates LLP as Joint Statutory Auditor for three years. Shareholders are advised that the record date for the final dividend is July 27, 2026, with payment scheduled on or after August 24, 2026. Remote e-voting will be open from August 15, 2026, at 9:00 a.m. (IST) until August 18, 2026, at 5:00 p.m. (IST). The Board appointed Mr. P. N. Parikh of M/s Parikh & Associates as the Scrutinizer to conduct the voting process.

Financial Performance and Strategic Milestones

FY 2025-26 was a transformative year for Tata Capital, marked by a landmark Initial Public Offering and the merger of Tata Motors Finance Limited. The company reported consolidated Net Assets Under Management (AUM) of ₹2,77,275 crore, a 20% year-on-year increase. Consolidated Total Income rose 11.32% to ₹31,582.62 crore, while Profit After Tax attributable to owners surged 32.24% to ₹4,846.10 crore. Return on Equity improved to 12.9% from 12.3% in the previous year.

The IPO, listed on October 13, 2025, raised ₹15,512 crore, making it the largest by an NBFC in India. Additionally, the Board approved the acquisition of Yogakshemam Loans Limited, subject to regulatory approvals, expanding its gold loan footprint across South India.

Key Dates for Shareholders

Subsidiary and Segment Growth

Tata Capital Housing Finance Limited saw AUM grow 29% to ₹86,653 crore. The consolidated loan book remained granular, with Retail and SME advances contributing approximately 86% of net AUM. Loan Against Property (LAP) AUM grew significantly by 36.1% to ₹38,812 crore, while Corporate Finance AUM expanded by 56.1% to ₹39,640 crore. Disbursals excluding ultra-short-term SME products grew 19% to ₹1,69,660 crore.

What the Numbers Show

The strong growth in PAT outpacing revenue growth indicates improving operational efficiency and margin expansion, supported by the scale benefits from the TMFL merger. The significant rise in LAP and Corporate Finance AUM suggests a strategic shift towards higher-yielding asset classes, balancing the decline in Commercial Vehicle Loans (-23.0%).