Tata Capital (TATACAP) investor relations material

Executive summary

• Net AUM reached ₹3,08,030 Cr at Sep-26, up 26% YoY and 6% QoQ; excluding Motor Finance, AUM was ₹2,84,439 Cr, up 32% YoY. Retail and SME were 85.4% of Net AUM.

• Q2FY27 reported PAT was ₹1,660 Cr, up 51% YoY; statutory consolidated profit was ₹1,831.88 crore versus ₹1,118.97 crore.

• Disbursements rose 29% YoY to ₹51,665 crore; operating efficiency improved and overall asset quality remained stable.

Financial highlights

• Net interest income was ₹3,696 Cr, up 23% YoY; net total income was ₹4,676 Cr, up 24% YoY, and pre-provisioning operating profit was ₹3,025 Cr, up 33%.

• Q2 consolidated revenue was ₹9,341.81 crore versus ₹7,738.96 crore; standalone revenue was ₹6,710.47 crore versus ₹5,584.16 crore.

• H1 consolidated revenue was ₹18,163.74 crore versus ₹15,403.55 crore; profit attributable to owners was ₹3,207.25 crore versus ₹2,087.21 crore.

• Q2 loan losses and provisions were ₹645.11 Cr, down 17% YoY; H1 consolidated impairment expense was ₹1,323.46 crore versus ₹1,681.75 crore.

• Cost-to-income improved 438 bps YoY to 35.3%; operating expense on average net loan book was 2.3%. Housing finance fee income rose 30% YoY, with assignment income up 50%.

Outlook and guidance

• FY25–28E AUM CAGR guidance is 23%–25% and PAT CAGR is above 30%; FY28 guidance remains unchanged.

• FY28 targets include cost-to-income of 33%–34%, credit cost below 1.0%, Net NPA below 1.0%, ROA of 2.5%–2.7% and ROE of 17%–18%.

• NIM plus fee is expected to be stable or marginally better in Q3 FY27, with a distinct improvement in Q4; Q2 NIM declined ~10 bps QoQ.

• Motor Finance rundown is expected to moderate in Q3, stabilize and return to growth in Q4; retail momentum is expected to strengthen in Q3 and Q4.

• Management prioritizes margins over growth, expects income growth of ~25% versus costs growth of ~15%, and anticipates ~two further repo rate hikes in FY27.