Mumbai – Tata Capital Ltd. announced strong financial results for the second quarter of fiscal year 2027 (Q2 FY27) on Tuesday, October 27, 2026. The company’s profit after tax (PAT) saw a significant 51% year-on-year (YoY) increase, reaching ₹1,660 crore, up from ₹1,097 crore in the corresponding quarter of FY26.
A major highlight was the company’s gross loan book, which expanded by 27% YoY to ₹3,03,739 crore, successfully crossing the ₹3 lakh crore mark during the quarter. This growth reflects a substantial increase from ₹2,39,960 crore recorded in Q2 FY26.
Strong Financial Performance Across Key Metrics
The financial services arm of the Tata Group demonstrated robust performance across various key indicators:
- Net Total Income: Increased by 24% YoY, reaching ₹4,676 crore in Q2 FY27, compared to ₹3,774 crore in the previous fiscal year's second quarter.
- Assets Under Management (AUM): Grew by 26% YoY to ₹3,08,030 crore as of September 30, 2026, up from ₹2,43,896 crore a year earlier. Excluding motor finance, AUM growth stood even higher at 32% YoY.
- Operating Efficiency: Annualised operating expenses (opex) as a percentage of the average net loan book improved, declining to 2.3% in Q2 FY27 from 2.6% in the year-ago period. The cost-to-income ratio also improved significantly to 35.3% from 39.7%.
Commenting on the results, Rajiv Sabharwal, Managing Director and CEO of Tata Capital, stated, “We achieved a significant milestone during the quarter, with our loan book crossing ₹3 trillion, underscoring the scale, diversification and resilience of our franchise.”
AI Integration Boosts Operations
Sabharwal also emphasized Tata Capital’s strategic focus on artificial intelligence (AI) to enhance operational efficiency and customer experience. AI-led capabilities are being scaled across multiple business functions, including onboarding, operations, underwriting, servicing, and collections.
“More than 70 per cent of retail applications are now processed through AI, while AI-assisted underwriting has been adopted across 95 per cent+ of Personal Loan and Business Loan cases, improving processing turnaround time by over 39 per cent and enhancing underwriting productivity. Our AI-powered operations platform has achieved adoption across over 95 per cent of Business Loan, Two-Wheeler and Micro Finance workflows, delivering meaningful gains in productivity, turnaround time and operating efficiency,” Sabharwal added.
Following the announcement of its Q2 FY27 earnings after market hours on Tuesday, Tata Capital shares had earlier closed 0.45% higher at ₹300.80.