Tata Capital Posts ₹1,660 Cr Profit in Q2FY27, Loan Book Surpasses ₹3 Lakh Crore

The company's net assets under management (AUM) witnessed a 26% growth year-over-year to ₹3,08,030 crore as of September 2026, with a notable exclusion of motor finance driving 32% YoY net AUM growth. Retail and small and medium enterprise (SME) loans remained the key focus, accounting for 85.4% of the net AUM, and unsecured retail loans forming 10.4%.

Operating efficiency improved with a cost-to-income ratio declining to 35.3% from 39.7% in the prior year quarter, and cost to average asset ratio reduced to 2.3%. Net interest income rose 23% YoY to ₹3,696 crore. The company employed 31,655 on-roll employees, growing by 6% compared to a 26% growth in AUM.

Asset quality stayed stable; gross non-performing assets (GNPA) stood at 1.9%, down from 2.2% a year earlier, and net non-performing assets (NNPA) at 0.8%. Annualized credit cost further improved to 0.9%. Return on assets (ROA) increased from 1.9% to 2.3%, and return on equity (ROE) rose from 13.0% to 14.0% year-over-year.

Tata Capital continued to enhance its presence with 1,515 branches across 26 states and union territories, leveraging a hybrid physical and digital (Phygital) approach to serve a customer franchise of 9.2 million. Total equity reached ₹47,778 crore, with total borrowings at ₹2,60,846 crore and a borrowing-to-equity ratio of 5.5 times, maintaining a liquidity buffer of ₹36,398 crore.