Mumbai, India – Tata Capital Ltd. announced a significant increase in its financial performance for the first quarter of fiscal year 2027, with profit after tax (PAT) soaring 56% year-on-year to ₹1,547 crore. This marks a strong start to the new fiscal year for the diversified financial services company.
Robust Growth Across Key Metrics
The company's PAT for the June quarter of FY27 climbed from ₹990 crore reported in the corresponding period last year. This substantial growth was underpinned by a healthy expansion in its assets under management (AUM).
As of June 30, 2026, Tata Capital's AUM reached ₹2,90,502 crore, a 22% increase from ₹2,37,508 crore recorded a year earlier. Excluding the Motor Finance business, AUM growth was even more pronounced, rising 28% year-on-year to ₹2,66,057 crore.
Operational Efficiency and Asset Quality Improve
Net total income for the April-June quarter also saw a healthy rise, climbing 23% year-on-year to ₹4,455 crore, compared to ₹3,626 crore in the same period of the previous fiscal year.
Operationally, Tata Capital demonstrated improved efficiency. The annualized operating expenditure (opex) on the average net loan book remained stable at 2.4% in Q1 FY27. Furthermore, the cost-to-income ratio improved marginally to 36.4% from 36.8% in Q1 FY26, reflecting better cost management.
Asset quality metrics also showed positive trends, with the annualized credit cost declining to 1.0% in Q1 FY27 from 1.6% a year ago, indicating stronger portfolio health.
Strong Balance Sheet Position
As of June 30, 2026, Tata Capital maintained a robust balance sheet, with total equity standing at ₹46,237 crore. The company's capital risk adequacy ratio (CRAR) was reported at 18.5%, well above regulatory requirements, ensuring financial stability and capacity for future growth.
CEO Comments on Performance
Commenting on the quarterly performance, Rajiv Sabharwal, Managing Director & CEO of Tata Capital, stated, "We commenced FY27 on a strong note, with healthy business momentum across our core franchises. Excluding Motor Finance, AUM grew 28 per cent year-on-year (YoY) to Rs 2,66,057 crore. Including Motor Finance, we achieved AUM growth of 22 per cent YoY and PAT growth of 56 per cent to Rs 1,547 crore. Asset quality trends continue to remain encouraging, underpinned by prudent underwriting and healthy collection efficiencies."
The earnings announcement was made after market hours on Tuesday. Earlier in the day, Tata Capital shares closed 1.21% higher at ₹354.95 on the BSE, reflecting positive investor sentiment ahead of the results.