Tata Capital Q1 Results: Profit Jumps 56%, Shares Rally

New Delhi: Shares of Tata Capital rallied more than 6% on Wednesday after the Tata Sons-backed NBFC reported a strong financial performance for the April–June quarter (Q1 FY27). The company's consolidated net profit surged 56% year-on-year (YoY) to ₹1,547.38 crore, boosting investor confidence and pushing the stock to an intraday high of ₹377.90 on the National Stock Exchange (NSE).

At around 11:34 AM, Tata Capital shares were trading nearly 2.3% higher at ₹363.10. The stock has gained over 4% in the past week and around 7% on a year-to-date (YTD) basis, despite witnessing some volatility over the past month.

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Q1 Profit Surges 56% to ₹1,547 Crore

Tata Capital posted an impressive 56% increase in consolidated net profit, rising from ₹989.89 crore in Q1 FY26 to ₹1,547.38 crore in Q1 FY27.

The company's Net Interest Income (NII) also registered healthy growth, increasing 25% YoY to ₹3,571 crore, compared to ₹2,866 crore in the same quarter last year.

The strong earnings reflect robust lending activity, improved operational efficiency and healthy demand across key business segments.

Assets Under Management Rise 22%

The company's Assets Under Management (AUM) stood at ₹2.91 lakh crore as of June 30, 2026, marking a 22% year-on-year growth from ₹2.37 lakh crore a year earlier.

Excluding the motor finance business, AUM expanded by 28%, highlighting strong growth in Tata Capital's core retail lending portfolio.

Following its recent entry into the gold loan business, the company has also announced plans to increase its gold loan AUM five-fold over the next three years, signalling aggressive expansion in the secured lending segment.

Asset Quality Continues to Improve

Tata Capital also reported better asset quality during the quarter.

• Gross NPA (GNPA) declined to 1.9%, compared to 2% in the previous quarter and 2.1% a year ago.
• Net NPA (NNPA) improved to 0.8%, down from 0.9% in the previous quarter and 1% in Q1 FY26.

The improvement reflects disciplined lending practices and stronger recovery efforts.

Company Targets Strong Growth

Looking ahead, Tata Capital expects its AUM to grow at a CAGR of 23% to 25% between FY25 and FY28. The company also aims for a Profit After Tax (PAT) CAGR of over 30% during the same period.

Management has projected:

• Cost-to-income ratio: 33–34% by FY28
• Return on Assets (RoA): 2.5%–2.7%
• Return on Equity (RoE): 17%–18%

These targets indicate the company's confidence in sustaining profitable growth over the coming years.

CEO Highlights Strong Business Momentum

Commenting on the quarterly performance, Managing Director & CEO Rajiv Sabharwal said the company has started FY27 on a strong note, driven by healthy business momentum across its core lending businesses.

He said the company's expansion into the gold loan segment will further diversify its retail lending portfolio and provide significant long-term growth opportunities.

Sabharwal also highlighted that investments in artificial intelligence (AI) and digital technologies have improved underwriting, operations, collections and customer service, resulting in better productivity despite only a modest increase in workforce.

According to the company, India's supportive liquidity environment and resilient credit demand continue to provide a favourable backdrop for business growth.

Stock Performance

Tata Capital shares have remained in focus after the quarterly results.

• Intraday High: ₹377.90
• 52-week High: ₹379.95 (June 19, 2026)
• 52-week Low: ₹296 (June 2, 2026)
• Market Capitalisation: ₹1.54 lakh crore (as of July 29, 2026)

The strong quarterly earnings, improving asset quality and optimistic growth outlook have strengthened investor sentiment, making Tata Capital one of the closely watched financial stocks in the market.