Tata Capital Ltd Q2 FY27 Profit Rises 51% as AUM Hits ₹3.08 Lakh Crore

Tata Capital Ltd reported Q2 FY27 consolidated assets under management of ₹3,08,030 crore, up 26% year-on-year, while profit after tax rose 51% to ₹1,660 crore. The results show continued loan-book expansion across housing finance and retail and SME lending, alongside stable reported asset quality and lower operating costs relative to income.

What did Tata Capital report for Q2 FY27?

Tata Capital reported broad-based growth in the quarter ended September 30, 2026, crossing the ₹3 lakh crore AUM mark. Consolidated AUM stood at ₹3,08,030 crore as of September 2026, rising 26% from a year earlier and 6% sequentially. Excluding the motor finance business, AUM increased 32% year-on-year and 7% quarter-on-quarter.

The company said consolidated profit after tax was ₹1,660 crore, up 51% year-on-year and 7% from the preceding quarter. Its earnings summary separately reported consolidated owner-attributable profit after tax of ₹1,659.87 crore. The reported consolidated financial results showed profit after tax of ₹1,831.88 crore for Q2 FY27, compared with ₹1,118.97 crore a year earlier.

Consolidated revenue from operations rose to ₹9,341.81 crore from ₹7,738.96 crore in the corresponding quarter of the prior year. On a standalone basis, revenue from operations increased to ₹6,710.47 crore from ₹5,584.16 crore, while profit after tax rose to ₹1,143.26 crore from ₹660.61 crore.

Which lending businesses drove Tata Capital's loan-book growth?

Tata Capital said growth was supported by housing finance and its retail and SME businesses. Retail and SME lending accounted for 85.4% of consolidated AUM, underscoring their importance to the company's loan portfolio. Consolidated disbursements increased 29% year-on-year to ₹51,665 crore during the quarter.

Management also highlighted high-margin disbursement growth of 40% year-on-year. The company did not provide a segment-wise disbursement figure in the supplied material, but it identified healthy expansion across its businesses as a contributor to the overall increase.

Tata Capital Housing Finance continued its reported growth trajectory during the quarter. The housing finance business recorded profit after tax of ₹552 crore, with return on assets of 2.5% and return on equity of 18%. At the consolidated level, Tata Capital reported return on assets of 2.3%, or 2.5% excluding motor finance, and return on equity of 14%.

How did Tata Capital's asset quality and costs change?

Tata Capital reported stable asset quality, with Stage 3 assets at 1.9% and provision coverage at 59%. These metrics indicate that the company maintained its reported credit-risk indicators while expanding its lending book at a double-digit pace.

The company also reported improvement in operating efficiency. Its cost-to-income ratio declined by 438 basis points year-on-year to 35.3% in Q2 FY27, while cost to average assets was contained at 2.3%. Lower cost relative to income was one of the factors management cited alongside diversified growth and resilient asset quality.

The financial data disclosed for the quarter is summarised below.

What did management say about FY27 growth?

Tata Capital management said it remained positive on growth for the rest of FY27 and confident of meeting its full-year guidance. The company has reaffirmed loan-growth guidance of 23% to 25% for FY27, following 26% year-on-year AUM growth in the second quarter.

Managing Director and Chief Executive Officer Rajiv Sabharwal said the Indian economy continued to show resilience, supported by domestic demand and investment. He described the quarter as one of broad-based growth, stable asset quality and improved operating efficiency, reflecting execution across the company's businesses.

The company released the Q2 FY27 earnings call transcript following its October 27, 2026 conference call on the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026. Rajiv Sabharwal and Chief Financial Officer Rakesh Bhatia were identified as leading the call.

Why do Tata Capital's Q2 results matter to investors?

Tata Capital's results matter because they combine loan-book growth, profit growth and reported credit stability in a large non-bank lending platform. AUM crossed ₹3 lakh crore, while retail and SME products represented more than four-fifths of the consolidated book. The disclosed 35.3% cost-to-income ratio also points to improved operating leverage during the quarter.

For investors, the reported figures provide several measures to monitor together: AUM and disbursement growth show lending momentum, while Stage 3 assets and provision coverage provide context on credit quality. Return on assets, return on equity and cost ratios offer additional evidence on profitability and operating efficiency. The supplied information also identifies rate and regulatory changes as uncertainties relevant to the FY27 outlook.

Half-year results reflected the same direction of growth. Consolidated revenue from operations for H1 FY27 was ₹18,163.74 crore, against ₹15,403.55 crore a year earlier, while consolidated profit after tax was ₹3,460.06 crore compared with ₹2,159.90 crore. Standalone H1 revenue from operations reached ₹13,044.59 crore and standalone profit after tax was ₹2,142.70 crore.

Conclusion

Tata Capital Ltd's Q2 FY27 update showed a 26% increase in consolidated AUM to ₹3,08,030 crore and a 51% rise in management-cited consolidated profit after tax to ₹1,660 crore. Housing finance, retail and SME lending supported growth, while Stage 3 assets remained at 1.9% and the cost-to-income ratio improved to 35.3%.

The key point to watch next is Tata Capital's progress against its reaffirmed FY27 loan-growth guidance of 23% to 25%. Investors will also track future disclosures on lending momentum, asset quality, provision coverage, interest-rate conditions and regulatory developments identified as relevant uncertainties.