Tata Capital (TATACAP) Q2 26/27 (Media) earnings summary

Executive summary

• Q2 FY27 delivered diversified growth, improving operating efficiency and resilient asset quality; management remained positive on growth for the rest of FY27.

• Retail and SME represented 85.4% of consolidated AUM; Q2 and H1 revenue and profit increased YoY on standalone and consolidated bases.

Financial highlights

• Consolidated AUM reached INR 308,030 crore, up 26% YoY and 6% QoQ; excluding motor finance, AUM grew 32% YoY. High-margin disbursements rose 40% YoY.

• Q2 profit after tax was INR 1,660 crore, up 51% YoY and 7% QoQ; consolidated owner-attributable PAT was ₹1,659.87 crore.

• Q2 standalone revenue from operations was ₹6,710.47 crore vs ₹5,584.16 crore, and PAT was ₹1,143.26 crore vs ₹660.61 crore; H1 revenue was ₹13,044.59 crore vs ₹11,158.82 crore and PAT ₹2,142.70 crore vs ₹1,228.69 crore.

• Q2 consolidated revenue from operations was ₹9,341.81 crore vs ₹7,738.96 crore, and PAT was ₹1,831.88 crore vs ₹1,118.97 crore; H1 revenue was ₹18,163.74 crore vs ₹15,403.55 crore and PAT ₹3,460.06 crore vs ₹2,159.90 crore.

• H1 impairment on financial instruments was ₹1,292.93 crore standalone vs ₹1,644.60 crore YoY, and ₹1,323.46 crore consolidated vs ₹1,681.75 crore.

Outlook and guidance

• FY27 and FY25–28 loan-growth guidance remained 23%–25%; management expected growth to stay within this range.

• A 20–25 bps increase in prime lending rates on floating-rate portfolios was expected to support an improving NIM-plus-fee trajectory in Q4.

• Alternative revolving-credit products were expected to meet customer needs, with no significant long-term impact anticipated, subject to final regulations.

• The MTN programme ceiling rose from US$2 billion to US$3 billion; foreign-currency debt issuance remained subject to market conditions, laws and approvals.