Tata Capital roadmap: 100% micro-housing growth, 500 gold loan branches and more
Tata Capital roadmap: One of the biggest growth drivers will be the housing business. Tata Capital expects its affordable housing portfolio to grow around 30% in FY27.
- Jul 29, 2026,
- Updated Jul 29, 2026 11:37 AM IST
Tata Capital has laid out an ambitious roadmap for FY27, targeting 23-25% growth in assets under management (AUMs) while betting aggressively on affordable housing, gold loans and unsecured retail lending. The Tata Group's NBFC arm also expects profitability to improve as margins expand and credit costs remain under control.
The company expects retail and SME lending to remain its biggest growth engines, contributing 85-88% of the overall loan book, while the share of corporate lending is expected to gradually decline as the portfolio shifts towards higher-yielding retail businesses.
One of the biggest growth drivers will be the housing business. Tata Capital expects its affordable housing portfolio to grow around 30% in FY27, while its micro-housing business is projected to double during the year, albeit on a smaller base, before growing another 50-60% in FY28. The company believes rising demand for affordable homes will continue to support expansion in this segment.
The lender is also making a major push into the gold loan market. It has proposed to acquire an 88.6% stake in Yogi Loans, subject to RBI and other regulatory approvals, which it expects by the end of calendar year 2026. Over the next 2.5 to 3 years, Tata Capital plans to open around 500 gold loan branches and expand the business to more than Rs 4,000 crore in assets, leveraging its brand, lower funding costs and technology platform.
Management expects unsecured retail lending to regain momentum after adopting a cautious stance over the past two-and-a-half years. While unsecured retail disbursements jumped 38% year-on-year in the June quarter, the loan book expanded only about 10% due to elevated repayments. The company expects loan growth to accelerate by the third or fourth quarter of FY27 as fresh disbursements begin translating into higher outstanding loans.
On profitability, Tata Capital expects net interest margins (NIMs) to improve by around 10 basis points in FY27, driven by a higher mix of high-yielding products and improved pricing. Although the cost of funds is expected to rise by 8-10 basis points, management believes better portfolio mix and pricing should offset the impact. Credit costs are expected to remain below 1%, while operating expenses as a percentage of assets are likely to decline by 3-4 basis points, supporting higher returns on assets over time.
Technology remains another key focus area. The company said nearly 98% of customers are now onboarded digitally, while around 70% of retail loan applications are processed through AI-enabled workflows, resulting in faster turnaround times and significant productivity gains. AI is also playing a growing role in customer service, collections and marketing.
Overall, Tata Capital remains confident that a combination of faster retail growth, improving margins, strong asset quality and expansion into housing and gold loans will help sustain healthy earnings growth over the medium term while keeping the company well-capitalised for future expansion.
Tata Capital has laid out an ambitious roadmap for FY27, targeting 23-25% growth in assets under management (AUMs) while betting aggressively on affordable housing, gold loans and unsecured retail lending. The Tata Group's NBFC arm also expects profitability to improve as margins expand and credit costs remain under control.
The company expects retail and SME lending to remain its biggest growth engines, contributing 85-88% of the overall loan book, while the share of corporate lending is expected to gradually decline as the portfolio shifts towards higher-yielding retail businesses.
One of the biggest growth drivers will be the housing business. Tata Capital expects its affordable housing portfolio to grow around 30% in FY27, while its micro-housing business is projected to double during the year, albeit on a smaller base, before growing another 50-60% in FY28. The company believes rising demand for affordable homes will continue to support expansion in this segment.
The lender is also making a major push into the gold loan market. It has proposed to acquire an 88.6% stake in Yogi Loans, subject to RBI and other regulatory approvals, which it expects by the end of calendar year 2026. Over the next 2.5 to 3 years, Tata Capital plans to open around 500 gold loan branches and expand the business to more than Rs 4,000 crore in assets, leveraging its brand, lower funding costs and technology platform.
Management expects unsecured retail lending to regain momentum after adopting a cautious stance over the past two-and-a-half years. While unsecured retail disbursements jumped 38% year-on-year in the June quarter, the loan book expanded only about 10% due to elevated repayments. The company expects loan growth to accelerate by the third or fourth quarter of FY27 as fresh disbursements begin translating into higher outstanding loans.
On profitability, Tata Capital expects net interest margins (NIMs) to improve by around 10 basis points in FY27, driven by a higher mix of high-yielding products and improved pricing. Although the cost of funds is expected to rise by 8-10 basis points, management believes better portfolio mix and pricing should offset the impact. Credit costs are expected to remain below 1%, while operating expenses as a percentage of assets are likely to decline by 3-4 basis points, supporting higher returns on assets over time.
Technology remains another key focus area. The company said nearly 98% of customers are now onboarded digitally, while around 70% of retail loan applications are processed through AI-enabled workflows, resulting in faster turnaround times and significant productivity gains. AI is also playing a growing role in customer service, collections and marketing.
Overall, Tata Capital remains confident that a combination of faster retail growth, improving margins, strong asset quality and expansion into housing and gold loans will help sustain healthy earnings growth over the medium term while keeping the company well-capitalised for future expansion.