Tata Capital Q2 FY27: AUM Crosses ₹3 Lakh Crore, PAT Surges 51% to ₹1,660 Crore
Tata Capital's Q2 FY27 consolidated AUM reached ₹3,08,030 crore, up 26% YoY. PAT surged 51% YoY to ₹1,660 crore. ROE exceeded 14%, and Gross Stage 3 assets remained stable at 1.9%. Housing Finance AUM grew 26% YoY to ₹95,098 crore. Prime lending rates will increase by 20-25 bps.
The substantial growth in AUM and PAT, along with resilience in asset quality and strategic initiatives like AI integration and repricing of lending rates, are significant developments for the company and the financial sector.
The company reported strong year-on-year growth in AUM and Profit After Tax, along with stable asset quality and improved operating efficiency, indicating a positive financial performance.
Tata Capital Limited announced its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. The company's consolidated Assets Under Management (AUM) surpassed the ₹3 lakh crore milestone, reaching ₹3,08,030 crore, marking a significant year-on-year growth of 26% and a sequential increase of 6%. Excluding the motor finance business, AUM grew by an impressive 32% year-on-year.
Profit After Tax (PAT) for the quarter stood at ₹1,660 crore, an increase of 51% year-on-year and 7% sequentially. The return on assets was recorded at 2.3%, and return on equity (ROE) crossed 14%. Asset quality remained resilient, with Gross Stage 3 assets stable at 1.9% and a provision coverage ratio of 59%. The annualized credit cost declined to 0.9%.
The housing finance segment also demonstrated strong performance, with AUM reaching ₹95,098 crore, a 26% year-on-year increase. Profit after tax for this segment was ₹552 crore, with ROA at 2.5% and ROE at 18%.
Management highlighted the company's focus on retail and SME businesses, which constitute approximately 85.4% of the consolidated AUM. Disbursements in these high-margin businesses grew by 40% year-on-year. The company also expanded its branch network to 1,515 branches across 1,094 locations.
Tata Capital's cost-to-income ratio improved by 438 basis points year-on-year to 35.3%, reflecting enhanced operating leverage and productivity gains driven by investments in technology and AI. The company reported that 99% of customer onboarding and 98% of retail disbursements are digitally enabled.
In response to the evolving interest rate environment, the company's ALCO approved a 20 to 25 basis points increase in prime lending rates on the floating rate portfolio, effective November 1, 2026. This repricing is expected to support an improving Net Interest Margin (NIM) plus fee trajectory.
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