Tata Capital shares gain over 6% as Q1 profit soars 56% YoY to ₹1,547 crore, AUM grows 22%

At around 11:34 AM, the stock was trading 2.30% higher at ₹363.10 per equity share.

The scrip has gained more than 4% in the past week but lost 2% over the month. On a year-to-date (YTD) basis, it has jumped 7%.

While the share hit a 52-week high of ₹379.95 apiece on June 19, 2026, it touched a year’s low of ₹296 on June 2, 2026.

Q1 results

The NBFC reported a 56% year-on-year (YoY) surge in its consolidated net profit to ₹1,547.38 crore during the quarter under review, compared with ₹989.89 crore in the first quarter of the 2025-26 fiscal year (Q1 FY26).

Its net interest income (NII) rose 25% YoY to ₹3,571 crore in the June quarter of FY27, from ₹2,866 crore in the corresponding period of the previous fiscal year, according to a regulatory filing dated July 28.

Its assets under management (AUM) stood at ₹2.91 lakh crore as on June 30, 2026, reflecting a 22% YoY growth from ₹2.37 lakh crore as on June 30, 2025. Excluding Motor Finance, its AUM grew by 28% YoY.

Having recently entered the gold loan business through an acquisition, the company announced ambitious targets in the segment, including a five-fold increase in AUM over the next three years.

Retail segment AUM of the company, excluding motor finance business, increased to ₹1.43 lakh crore in the June quarter, from ₹1.36 lakh crore in the March quarter, and ₹1.18 lakh crore in the June quarter last year, according to the investor presentation.

Its asset quality improved both sequentially and annually, with gross non-performing assets (GNPA) contracting by 10 basis points (bps) quarter-on-quarter (QoQ) to 1.9% for the reporting quarter, from 2% in Q4 FY26. It declined by 20 bps YoY from 2.1% in the year-ago period.

Its net non-performing assets (NNPA) stood at 0.8% in Q1 FY27, down 10 bps QoQ from 0.9% in the preceding quarter and down 20 bps YoY from 1% in the June FY26 quarter.

Guidance

The company is targeting an AUM compound average growth rate (CAGR) of 23% to 25% between FY25 and FY28, and a profit after tax CAGR of more than 30% over the same period.

Tata Capital expects its cost-to-income to be between 33% and 34% in FY28, and return on assets (RoA) to stand between 2.5% and 2.7%. It projected its returns on equity (RoE) at 17-18% during the same period.

What the CEO said

Commenting on the results, Rajiv Sabharwal, Managing Director & CEO, Tata Capital said: “We commenced FY27 on a strong note, with healthy business momentum across our core franchises. Excluding Motor Finance, AUM grew 28% year on year to ₹2,66,057 crore. Including Motor Finance, we achieved AUM growth of 22% year-on-year and PAT growth of 56% to ₹1,547 crore. Asset quality trends continue to remain encouraging, underpinned by prudent underwriting and healthy collection efficiencies.”

He further stated that the company’s entry into the gold loan business marks an important step in further diversifying Tata Capital’s retail lending portfolio.

“This business complements our existing product suite and offers significant long-term growth potential, supported by increasing customer preference for high-frequency, secured credit. Going forward, we aim to combine Yogloans’ proven expertise with Tata Capital’s trusted brand, financial strength, technology and risk management capabilities, to scale the business further,” Sabharwal added.

Artificial intelligence and digital capabilities have continued to be core enablers of Tata Capital’s growth strategy, he stated, adding that the benefits of its technology investments have been increasingly visible across origination, underwriting, operations, collections and servicing.

“Including Motor Finance, our AUM grew by 22% year-on-year, while headcount increased by only ~5%, reflecting significant productivity gains across the organization. While we continue to invest in customer-facing and sales roles to support growth, AI-led automation is helping optimize operations and drive efficiency across the broader value chain,” Sabharwal added.

He said that the macroeconomic environment remains favourable, with supportive liquidity conditions and resilient domestic demand providing a strong foundation for economic growth.

“While external uncertainties persist, the strength of India’s fundamentals and the continued momentum in credit demand give us confidence in our ability to grow in a prudent manner,” Sabharwal stated.

Tata Capital has a total market capitalisation of ₹1.54 lakh crore as of July 29, 2026, according to data on the NSE.