Tata Capital Ltd. saw a 56.3 per cent year-on-year increase in consolidated net profit in the first quarter of FY27. During the first quarter (year-ending June 30, 2026), the non-banking financial company (NBFC) posted net profit of ₹1,547 crore, or 5.3 per cent more than the previous quarter (year-earlier quarter).
The impressive earnings growth was driven by strong loan demand, steady expansion from retail and SME lending and improved profitability ratios. Total income grew by double digits, and the company was still expanding across the country.
The company’s total income grew 15 per cent year-on-year to ₹8,825 crore, up from ₹7,692 crore in the first quarter of FY26 based on the company's quarterly filing. This shows more loans and good business momentum with the global economy in rough shape.
The quarter was characterized by the huge growth in assets under management (AUM). Tata Capital’s AUM was ₹2,90,502 crore as of June 30, 2026, a 22% rise over ₹2,37,508 crore in the same period last year.
Apart from the Motor Finance business, its AUM also grew even faster than that—up 28% year-on-year. This is a sign of strong demand across Tata Capital's core lending businesses, particularly in retail and small business finance.
Retail and SME loans accounted for 85.4% of net AUM, the company told us in a statement, and it is still focused on consumer/business lending. Unsecured retail loans were just 10.3% of net AUM, which is indicative of a balanced and prudent lending approach to asset quality.
Tata Capital also continued to expand its physical distribution network in the current quarter. The company expanded its footprint to 1,491 branches across 27 states and Union Territories, and this will help it to serve a bigger customer base and grow its business further in the future.
A lot of profitability metrics also improved during the quarter
The company's annualised Return on Assets (ROA) increased to 2.3%, compared to 1.8% a year ago. ROA excluding Motor Finance was up to 2.5 percent as opposed to 2.1 percent in the same quarter in the previous year.
Similarly, the year-on-year annualised Return on Equity (ROE) was 13.7% compared to 12.5% in the same period in FY26, which indicates efficiency of operations and better returns for shareholders.
The quarterly results were satisfactory, the Managing Director & CEO Rajiv Sabharwal said, and we are confident in the Indian economy and the future growth of the company.
He said that supportive liquidity conditions, robust domestic demand and India’s strong economic fundamentals are still favorable for credit growth. Although there are still global uncertainties and challenges, Tata Capital is confident of growing rapidly and in a sustainable manner through prudent lending practices, he said.
The good quarterly numbers of Tata Capital also got a positive reaction from investors. Tata Capital shares rose by 1.3 percent, or ₹50 cents, to close at ₹355.10 on the NSE on Tuesday, outperforming the benchmark Nifty index, which closed in negative territory.
The performance now reaffirms Tata Capital as one of India’s fastest-growing NBFCs. The company is well placed to take advantage of India’s growing credit demand with good loan growth, improving profitability, growth of branches, and disciplined risk management in the third quarter. Investors will now be closely watching whether Tata Capital can continue this momentum throughout the rest of FY27 as lending activity and economic growth continue to grow.
Comments
Please to leave a comment on this article.