Tata Capital Q1 profit jumps 56% as retail lending fuels AUM growth
Tata Capital reported Q1 FY27 PAT of Rs 1,547 crore, up 56% year-on-year, while AUM rose 22% to Rs 2.91 lakh crore. Brokerages cited momentum across retail, SME, housing and unsecured lending, with price targets ranging from Rs 390 to Rs 405.
What happened
Tata Capital reported strong Q1 FY27 growth, with PAT up 56% and AUM up 22%. Brokerages highlighted retail, SME, housing and unsecured lending growth, assigning
Key facts
- Q1 FY27 PAT: Rs 1,547 crore, up 56% YoY
- Q1 FY27 AUM: Rs 2,90,502 crore, up 22% YoY
- Q1 FY27 net total income: Rs 4,455 crore, up 23% YoY
- Share price: Rs 377.70, up 6.40%
- Record high: Rs 379.10
- FY27 AUM growth guidance: 23-25%
- MOFSL target price: Rs 390
- JM Financial target price: Rs 405
- Nuvama target price: Rs 400
Why this matters
Tata Capital’s momentum across multiple lending segments strengthens its strategic position as a scalable financial-services platform and potential partner for consumer, merchant and housing ecosystems.
What to watch
- Quarterly AUM growth and whether it remains above 20% year-on-year.
- Net interest margin movement versus borrowing-cost trends and competitive loan pricing.
- Gross and net stage-3 assets, early-bucket delinquencies and credit-cost/provision trends, especially in unsecured lending.
- Share of unsecured, housing, SME and other secured products in incremental disbursals.
- Capital adequacy, leverage and any need for equity or external funding to support growth.
- RBI guidance on unsecured consumer lending, NBFC liquidity, provisioning or capital requirements.
- Evidence that fee income and cross-sell are growing alongside interest income.
- Any revision to management guidance or brokerage estimates following the next quarterly results.
- Accelerate secured retail disbursals in housing, vehicle and loan-against-property categories to preserve growth while moderating unsecured risk.
- Use the Tata brand, dealer network and group customer base to deepen cross-sell of insurance, wealth, cards and business-finance products.
- Raise or diversify longer-tenor funding if loan growth continues to outpace deposit-like or bank funding availability.
- Tighten underwriting, collections and early-warning controls in unsecured consumer and SME books before rapid portfolio expansion creates delayed credit costs.
- Brokerages are likely to focus subsequent estimates on net interest margins, credit-cost guidance and the mix of secured versus unsecured AUM rather than AUM growth alone.