Tata Capital Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 8,821.93 Cr (+15.10% YoY) and PAT growth of +56.32% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | July 28, 2026 |
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| Quarter | Q1 FY 2026-2027 |
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| Revenue (Q1) | Rs. 8,821.93 Cr (+15.10% YoY) |
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| PAT (Q1) | Rs. 1,547.38 Cr (+56.32% YoY) |
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| EPS (Q1) | Rs. 3.65 (+47.18% YoY) |
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| Market cap | Rs. 150,607.18 Cr |
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| CMP | Rs. 354.95 |
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Quarter Snapshot
Tata Capital delivered a strong quarter with PAT up 56% YoY, NIM expanding 309 bps YoY, and asset quality improving. However, financing revenue growth of 14.7% moderated versus the 18-20% target, and QoQ NIM compression from rising finance costs warrants monitoring.
Key Investment Insights
Key Positives
- PAT attributable to owners surged 56.32% YoY to Rs.1,547.38 Cr
- Net interest income grew 24.59% YoY to Rs.3,570.95 Cr, with NII margin expanding 309 bps YoY to 40.48%
- Asset quality improved: GNPA fell to 2.45% from 2.62% YoY, NNPA to 1.07% from 1.24% YoY
- Provision coverage ratio improved to 56.99% from 53.44% YoY
- Impairment on financial instruments declined 25.34% YoY to Rs.678.35 Cr
- Cost-to-income ratio improved to 36.37% from 36.81% YoY and sequentially from 38.26% in Q4FY26
- Capital adequacy ratio remained strong at 18.46%
Risk Factors
- Financing segment revenue growth of 14.7% YoY trailed management's 18-20% AUM growth guidance for FY27, indicating potential slowdown in loan book growth
- NII margin compressed QoQ from 42.61% in Q4FY26 to 40.48% in Q1FY27 as finance costs rose 8.8% QoQ vs interest income growth of 6.0% QoQ
- Operating expenses grew 21.4% YoY, outpacing revenue growth of 15.1% YoY, though NII growth offset the impact
- Employee costs and other expenses grew 19.5% and 21.6% YoY respectively, indicating cost pressures