Tata Capital Q2 PAT jumps 51% YoY to Rs 1,660 crore; loan book crosses Rs 3 lakh crore

Tata Capital Ltd on Tuesday reported a 51 per cent year-on-year (YoY) increase in profit after tax (PAT) to Rs 1,660 crore in the second quarter (Q2) of FY27, compared with Rs 1,097 crore in the corresponding quarter last year.

The company's gross loan book rose 27 per cent YoY to Rs 3,03,739 crore in Q2 FY27 from Rs 2,39,960 crore in Q2 FY26, crossing the Rs 3 lakh crore mark during the quarter.

Assets under management (AUM) grew 26 per cent YoY to Rs 3,08,030 crore as of September 30, 2026, compared with Rs 2,43,896 crore a year earlier. Excluding motor finance, AUM growth stood at 32 per cent YoY.

Net total income increased 24 per cent YoY to Rs 4,676 crore in Q2 FY27 from Rs 3,774 crore in Q2 FY26.

The company's annualised operating expenses (opex) on average net loan book declined to 2.3 per cent in Q2 FY27 from 2.6 per cent in the year-ago quarter. The cost-to-income ratio improved to 35.3 per cent from 39.7 per cent over the same period.

Commenting on the performance, Rajiv Sabharwal, Managing Director and CEO of Tata Capital, said, "We achieved a significant milestone during the quarter, with our loan book crossing Rs 3 trillion, underscoring the scale, diversification and resilience of our franchise."

Sabharwal also highlighted the company's focus on artificial intelligence (AI) and its adoption across business operations.

"Artificial intelligence remains a core strategic priority for the organization. During the quarter, we continued to scale AI-led capabilities across onboarding, operations, underwriting, servicing and collections. More than 70 per cent of retail applications are now processed through AI, while AI-assisted underwriting has been adopted across 95 per cent+ of Personal Loan and Business Loan cases, improving processing turnaround time by over 39 per cent and enhancing underwriting productivity. Our AI-powered operations platform has achieved adoption across over 95 per cent of Business Loan, Two-Wheeler and Micro Finance workflows, delivering meaningful gains in productivity, turnaround time and operating efficiency," he stated.

The company announced its Q2 FY27 earnings after market hours on Tuesday. Earlier in the day, Tata Capital shares rose 0.45 per cent to close at Rs 300.80.