Tata Capital Q1 FY27: PAT up 56% to ₹1,547cr

Results approval and the key headline numbers

Tata Capital said its board approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1 FY27) at a meeting held on July 28, 2026. The diversified non-banking financial company reported a sharp year-on-year improvement in profitability, supported by faster growth in assets under management (AUM) and stable credit costs. Consolidated profit after tax (PAT) attributable to owners of the company rose to ₹1,547.38 crore in Q1 FY27, compared with ₹990 crore in the same quarter last year. On a consolidated basis, net profit for the quarter was reported at ₹1,628.18 crore, with non-controlling interest of ₹80.80 crore. The company also reiterated its FY27 AUM growth guidance range of 23% to 25%.

Profit growth driven by scale, with margins also improving

Tata Capital reported consolidated PAT of ₹1,547 crore for Q1 FY27, up 56% year on year and 3% sequentially. The company also reported that its net profit margin improved to 17.54% from 12.92% in the year-ago period, though it declined sequentially from 18.41% in Q4 FY26. Annualised return on assets (ROA) was reported at 2.3% in Q1 FY27, compared with 1.8% in Q1 FY26. Annualised return on equity (ROE) rose to 13.7% from 12.5% a year earlier. Tata Capital said higher cost of funds was offset by business momentum and credit costs remaining within guidance.

Income and revenue trends for the quarter

On a consolidated basis, total income for Q1 FY27 was reported at ₹8,825.38 crore, compared with ₹7,691.65 crore in Q1 FY26. Separately, revenue from operations for the April to June quarter was reported at ₹8,822 crore, up from ₹7,665 crore in the year-ago period. On the standalone side, Tata Capital reported total income of ₹6,336.96 crore for Q1 FY27, compared with ₹5,600.26 crore in Q1 FY26. Standalone net profit rose to ₹999.44 crore from ₹568.08 crore a year earlier.

AUM growth remains the centrepiece

Tata Capital reported consolidated AUM of ₹291,000 crore (also disclosed as ₹290,502 crore) as of late June 2026, up 22% year on year and about 5% sequentially. Excluding motor finance, AUM growth was reported at 28% year on year, with AUM at ₹266,057 crore. The company said net AUM addition during the quarter was ₹13,227 crore on a quarter-on-quarter basis. Tata Capital also disclosed that Retail plus SME constituted 85.4% of net AUM, while unsecured retail loans formed 10.3% of net AUM.

Disbursement momentum and business mix

The company reported consolidated disbursements of ₹46,212 crore in Q1 FY27, up 33% year on year. It also said unsecured retail disbursements increased 50% year on year. Tata Capital’s commentary highlighted sustained momentum across core businesses, and it flagged a strong performance trajectory in its housing finance business during the quarter.

Asset quality and credit cost: incremental improvements

Tata Capital reported credit cost at 1.0% for Q1 FY27, down from 1.6% in Q1 FY26. Gross Stage 3 assets were reported at 1.9%, improving from 2.0% in March 2026. Net NPA improved to 0.8%, down 10 basis points sequentially. These metrics were presented as supporting evidence of stable underwriting performance amid growth in the loan book.

Efficiency, funding cost, and liquidity buffer

Operating efficiency improved, with the cost-to-income ratio reported at 36.4% in Q1 FY27. The company said this represented an improvement of 190 basis points from Q4 FY26, and it also compared the ratio with 36.8% in Q1 FY26. Cost of funds was reported at 7.28% in Q1 FY27, up from 7.15% in Q4 FY26. Tata Capital also disclosed a total liquidity buffer of about ₹29,000 crore. Its capital adequacy was reported at 18.5%, above regulatory requirements, and debt-to-equity ratio was reported at 5.3x, unchanged from March 2026.

Housing finance arm: AUM and profit growth

Tata Capital’s housing finance business (TCHFL) reported AUM of ₹89,416 crore in Q1 FY27, up 24% year on year and 3% sequentially. The housing finance arm’s PAT was reported at ₹532 crore, up 29% year on year. The company’s management commentary described the housing finance performance as strong in the first quarter of FY27.

Expansion moves and investor messaging

The company said it entered the gold loans market through the acquisition of Yo Loans and plans a major branch expansion after regulatory approval. It also said its funding base remains supported by a triple-A domestic rating and a $100 million international bond issue. Tata Capital reiterated its FY27 AUM growth guidance at 23% to 25%, signalling that it expects the growth runway to continue despite a higher cost of funds.

Separate listed-market event: board meeting on August 04, 2026

A separate disclosure in the provided data also referenced a board meeting scheduled for August 04, 2026 to consider unaudited financial results for the quarter ended June 30, 2026. The same section listed quick market details including a CMP of ₹678.65 and market capitalisation of ₹34,336.5 crore, and noted a previous-quarter revenue of ₹56.37 crore and PAT of ₹52.08 crore. It also stated that the company reported total standalone income of ₹56.37 crore for the quarter ended March 31, 2026, a 12.1% sequential increase over ₹50.28 crore in the preceding quarter.

Key numbers at a glance

Why the quarter matters for investors tracking NBFCs

Tata Capital’s Q1 FY27 print added to a broader trend investors watch in NBFCs: whether growth is being delivered alongside stable asset quality and controlled operating costs. In this quarter, the company reported AUM growth of 22% year on year, credit cost at 1.0%, and a cost-to-income ratio of 36.4%. At the same time, it flagged a higher cost of funds at 7.28%, which is a key sensitivity for lenders in a rising-rate environment. The company’s reiterated FY27 AUM growth guidance of 23% to 25% also provides a benchmark for tracking execution across subsequent quarters.

Conclusion

Tata Capital reported a strong start to FY27, with consolidated PAT rising 56% year on year to ₹1,547 crore and AUM growing 22% to about ₹291,000 crore, alongside incremental improvements in credit cost and efficiency. The next milestones to watch are subsequent quarterly updates against its 23% to 25% FY27 AUM growth guidance and any regulatory progress tied to its planned branch expansion.