Tata Capital Q1 FY27 profit jumps 56% as retail and SME lending drives AUM growth

Tata Capital reported Q1 FY27 consolidated net profit of Rs 1,547 crore, up 56.3% year on year. Total income rose 15% to Rs 8,825 crore, while AUM grew 22% to Rs 2.91 lakh crore. Retail and SME loans accounted for 85.4% of net AUM.

— Source publishedTue, 28 Jul, 2026, 15:57 IST·First seen Tue, 28 Jul, 2026, 17:07 IST·Source NDTV Profit

What happened

Tata Capital reported a 56.3% year-on-year rise in Q1 FY27 net profit to Rs 1,547 crore, supported by AUM growth and retail and SME lending. The Tata Group NBFC

Key facts

  • Q1 FY27 consolidated net profit: Rs 1,547 crore, up 56.3% YoY from Rs 990 crore
  • Total income: Rs 8,825 crore, up 15% YoY from Rs 7,692 crore
  • AUM: Rs 2,90,502 crore as of June 30, 2026, up 22% YoY
  • Retail and SME loans: 85.4% of net AUM
  • Branches: 1,491 across 27 states and Union Territories
  • Annualised ROA: 2.3%, versus 1.8% a year earlier
  • Annualised ROE: 13.7%, versus 12.5% a year earlier

Why this matters

Tata Capital’s retail- and SME-heavy loan mix reinforces the strategic value of distribution, customer-data and embedded-finance partnerships targeting India’s growing mass-market credit demand.

What to watch

  • Net interest margin and cost-of-funds trend versus AUM growth.
  • GNPA, NNPA, stage-3 assets, write-offs and credit-cost movement, especially in SME and unsecured retail books.
  • Share of unsecured personal loans, used-vehicle finance and other higher-risk products within incremental disbursements.
  • Retail and SME disbursement growth, approval rates and collection efficiency.
  • Deposit/funding mix, borrowing spreads and liquidity coverage as loan growth outpaces internal capital generation.
  • RBI consumer-credit, NBFC liquidity or capital-rule changes that could alter growth economics.
  • Evidence that Tata Capital is converting lending customers into insurance, wealth-management or other fee-based relationships.
  • Increase origination in secured retail categories such as housing, vehicle and loan-against-property while selectively expanding SME working-capital and supply-chain finance.
  • Use Tata Group distribution, dealer networks and digital journeys to lower acquisition costs and deepen cross-selling of insurance, wealth and payments products.
  • Diversify liabilities through deposits, bank lines, bonds and securitisation to protect funding spreads as the balance sheet scales.
  • Tighten risk-based pricing, bureau monitoring and early-collections capacity in faster-growing SME and consumer cohorts.
  • Use stronger profitability and AUM momentum to support capital-market positioning, valuation expectations and potential strategic fundraising activity.