Tata Capital Q1 FY27 Profit Rises 76% YoY To ₹999 Crore

Tata Capital reported a strong quarterly performance for the quarter ended 30 June 2026. Standalone profit after tax rose 75.9% year-on-year to ₹999.44 crore. It stood at ₹568.08 crore in the corresponding quarter last year. The company's total income increased to ₹6,336.96 crore, compared with ₹5,600.26 crore a year earlier, supported by healthy growth in lending income.

Revenue from operations stood at ₹6,334.12 crore during the quarter, up from ₹5,574.66 crore in the year-ago period. Interest income remained the biggest contributor, increasing to ₹5,739.03 crore from ₹5,057.55 crore. Rental income also rose to ₹144.85 crore from ₹89.29 crore, while fees and commission income climbed to ₹346.63 crore from ₹272.01 crore.

Net gains on fair value changes came in at ₹64.70 crore, compared with ₹85.18 crore in the same quarter last year. Net gains on derecognition of financial instruments under the amortised cost category stood at ₹30.15 crore, down from ₹61.88 crore a year earlier. Other income declined sharply to ₹2.84 crore from ₹25.60 crore.

Tata Capital Q1 FY27 Results: Higher Costs Weigh On Profit

Total expenses increased to ₹4,994.07 crore during the quarter from ₹4,837.42 crore in the corresponding period last year. Finance costs rose to ₹3,017.36 crore from ₹2,871.37 crore as the company continued to expand its lending business.

Impairment on financial instruments fell to ₹669.15 crore from ₹886.84 crore in the year-ago quarter, indicating an improvement in credit costs. Employee benefit expenses increased to ₹599.88 crore from ₹507.41 crore, while depreciation, amortisation and impairment expenses rose to ₹141.56 crore from ₹104.96 crore. Other operating expenses also moved higher to ₹566.12 crore.

Tata Capital Q1 FY27: Asset Quality Improves As Capital Position Remains Strong

Tata Capital's asset quality strengthened further during the quarter. Net non-performing assets (NNPA) also improved to 1.07%, compared with 1.24% a year ago and 1.15% in the March quarter.

The provision coverage ratio increased to 56.99% from 53.44% a year earlier, reflecting stronger provisioning against stressed assets. The company's capital adequacy ratio remained healthy at 18.46%, comfortably above regulatory requirements, although it eased slightly from 18.96% in the previous quarter.

Net worth rose sharply to ₹39,242.68 crore from ₹27,394.14 crore a year ago. The debt-to-equity ratio stood at 4.32 times, compared with 5.32 times in the corresponding quarter last year. Net profit margin improved to 15.78% from 10.19% a year earlier, highlighting stronger profitability despite higher operating and funding costs.

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