Tata Capital Q1 Results: PAT Soars 56% YoY to ₹1,547 Crore; Forays into Gold Loans

Tata Capital Limited has reported a strong financial performance for the first quarter ended June 30, 2026 (Q1 FY27), driven by robust growth across its lending businesses and continued expansion in its retail and SME portfolio. The company posted a 56% year-on-year (YoY) increase in consolidated Profit After Tax (PAT), reflecting healthy business momentum and improved operational efficiency.

Q1 FY27 Financial Highlights

Tata Capital delivered broad-based growth across key financial metrics during the quarter.

• Profit After Tax (PAT): Consolidated PAT surged 56% YoY to ₹1,547 crore, compared with ₹990 crore in Q1 FY26.
• Assets Under Management (AUM): Total AUM increased 22% YoY to ₹2,90,502 crore.
• AUM (Excluding Motor Finance): Expanded 28% YoY to ₹2,66,057 crore.
• Net Total Income: Rose 23% YoY to ₹4,455 crore, up from ₹3,626 crore in the corresponding quarter last year.
• Net Interest Income (NII): Increased 25% YoY to ₹3,571 crore, compared with ₹2,866 crore in Q1 FY26.
• Pre-Provision Operating Profit (PPOP): Grew 24% YoY to ₹2,835 crore.

Strong Profitability and Asset Quality

The company maintained healthy profitability while preserving a strong balance sheet.

• Return on Assets (ROA): Improved to 2.3%, or 2.5% excluding the Motor Finance business.
• Return on Equity (ROE): Stood at 13.7%.
• Gross Stage 3 (GS3): 1.9%.
• Net Stage 3 (NS3): 0.8%.
• Provision Coverage Ratio (PCR): 56.9%.

Retail and SME businesses remained the key growth engines, contributing 85.4% of the company’s net AUM.

Tata Capital to Enter Gold Loan Business

In a strategic diversification initiative, Tata Capital announced its proposed entry into the gold loan segment through the acquisition of Orleans, subject to customary regulatory and other approvals.

Commenting on the development, Managing Director & CEO Rajiv Sabharwal said the acquisition would strengthen the company’s secured lending portfolio and enable it to capitalize on the growing demand for high-frequency secured credit.