Tata Capital Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Tata Capital Ltd filed with BSE on 03 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Tata Capital reported consolidated AUM of Rs 2.91 lakh crores for Q1 FY27, up 22% year-on-year, with profit after tax of Rs 1,547 crores, up 56% year-on-year. Management highlighted the proposed acquisition of Yogloans to enter the gold loan business and a USD 400 million international bond issuance that was oversubscribed four times. Management also discussed asset quality trends, cost of funds, operating leverage, and the transformation of the Motor Finance business.
Numbers mentioned
Consolidated AUM: Rs 2.91 lakh crores (Q1 FY27)
p. 13
“As of June ‘26, our consolidated AUM stood at Rs. 2.91 lakh crores.”
Rajiv Sabharwal, page 13 of the filed PDF · View the filing
Consolidated Profit After Tax: Rs 1547 crores, up 56% year-on-year (Q1 FY27)
p. 13
“Our consolidated profit after tax for the quarter stood at Rs. 1547 crores, up 56% year-on-year”
Rajiv Sabharwal, page 13 of the filed PDF · View the filing
Consolidated ROA: 2.3% (Q1 FY27)
p. 13
“Consolidated ROA stood at 2.3%, and excluding Motor Finance, it was 2.5%, and consolidated ROE stood at 13.7%.”
Rajiv Sabharwal, page 13 of the filed PDF · View the filing
Housing Finance AUM: Rs 89,416 crores, up 24% year-on-year (Q1 FY27)
p. 13
“Our AUM grew 24% year-on-year to reach Rs. 89,416 crores, and PAT increased 29% year-on-year to touch Rs. 532 crores”
Rajiv Sabharwal, page 13 of the filed PDF · View the filing
Credit cost: 1% (Q1 FY27)
p. 15
“Our credit cost for Quarter 1 FY27 stood at 1%, in line with FY28 guidance, and remains well within the guided corridor.”
Rajiv Sabharwal, page 15 of the filed PDF · View the filing
Gross Stage-3 assets: 1.9% (June 2026)
p. 15
“Gross Stage-3 assets improved to 1.9% as on June 2026 compared to 2% as on March 2026, while maintaining the PCR at 57%.”
Rajiv Sabharwal, page 15 of the filed PDF · View the filing
Cost of funds: 7.28% (Q1 FY27)
p. 16
“In Quarter 1, our cost of funds stood at 7.28%, increasing from 7.15% in Q4 FY26.”
Rajiv Sabharwal, page 16 of the filed PDF · View the filing
Cost-to-income ratio: 36.4% (Q1 FY27)
p. 16
“For Q1 FY27, the cost-to-income ratio stood at 36.4%, representing an improvement of 190 basis points over Q4 FY26.”
Rajiv Sabharwal, page 16 of the filed PDF · View the filing
Consolidated disbursements: Rs 46,212 crores, up 33% year-on-year (Q1 FY27)
p. 14
“consolidated disbursements rising 33% year-on-year to Rs 46,212 crores driven by healthy growth across businesses and a 50% year-on-year increase in unsecured Retail disbursals”
Rajiv Sabharwal, page 14 of the filed PDF · View the filing
Total borrowings: Rs 2.45 lakh crores (June 2026)
p. 16
“Total borrowing stood at approximately Rs 2.45 lakh crores as of June ‘26, with a diversified mix across instruments.”
Rajiv Sabharwal, page 16 of the filed PDF · View the filing
Capital adequacy ratio: 18.5% (June 2026)
p. 16
“As of June 2026, our capital adequacy remains robust at 18.5%, well above the regulatory requirements and is supported by a strong CET1 ratio”
Rajiv Sabharwal, page 16 of the filed PDF · View the filing
On-role employee count: 30,170, up about 5% year-on-year (June 2026)
p. 16
“As of June 2026, our on-role employee count stood at 30,170, up only about 5% year-on-year, reflecting meaningful productivity gains across the organization.”
Rajiv Sabharwal, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM growth — 23% to 25% · FY27
stated firmly by Rajiv Sabharwal
p. 23
“Yes, Anand, our guidance was 23% to 25% and we should be on track with that.”
Rajiv Sabharwal, page 23 of the filed PDF · View the filing
NIM/margin improvement — about 10 basis points · FY27
stated firmly by Rajiv Sabharwal
p. 29
“So, we are targeting a 10 bps NIMs increase for the whole year.”
Rajiv Sabharwal, page 29 of the filed PDF · View the filing
Cost of funds increase — 8 to 10 basis points · FY27
stated firmly by Rajiv Sabharwal
p. 23
“our belief is this, that in this year, on an overall basis, we may see a cost of fund increase of closer to about 8 to 10 basis points.”
Rajiv Sabharwal, page 23 of the filed PDF · View the filing
Cost-to-income ratio — 33% to 34% · FY28
stated firmly by Rakesh Bhatia
p. 26
“we have guided that by FY28, we will be at 33% to 34% on cost-to-income ratio.”
Rakesh Bhatia, page 26 of the filed PDF · View the filing
Motor Finance ROA — 2% ROA · FY28
stated firmly by Rajiv Sabharwal
p. 24
“we want to stay with our stated objective of getting to a 2% ROA by FY28.”
Rajiv Sabharwal, page 24 of the filed PDF · View the filing
Gold loan branch network — about 500 plus branches · next 2.5 to 3 years
stated conditionally by Rajiv Sabharwal
p. 20
“if I were to look into the next two and a half to three years, we expect to add about 500 branches and also grow our portfolio to Rs. 4000-plus crores.”
Rajiv Sabharwal, page 20 of the filed PDF · View the filing
Retail plus SME mix — 85% to 88%
stated firmly by Rajiv Sabharwal
p. 15
“Our stated vision is to operate with a Retail plus SME mix of between 85%-88%.”
Rajiv Sabharwal, page 15 of the filed PDF · View the filing
Consolidated debt-to-equity ratio — around 6.2x to 6.3x
stated conditionally by Rakesh Bhatia
p. 21
“If I look forward, we look at a consolidated debt-equity of around 6.2x to 6.3x.”
Rakesh Bhatia, page 21 of the filed PDF · View the filing
Capital adequacy sufficiency — well capitalized till June to September of 2028 · FY29
stated conditionally by Rakesh Bhatia
p. 21
“if I look at the book growth, what we have guided to the street, I think we are well capitalized till June to September of 2028.”
Rakesh Bhatia, page 21 of the filed PDF · View the filing
Microfinance share of book — less than 2% of book · foreseeable future
stated as an aspiration by Rajiv Sabharwal
p. 23
“we do believe that for in the foreseeable future that this will continue to be less than 2% of our book.”
Rajiv Sabharwal, page 23 of the filed PDF · View the filing
OPEX operating leverage contribution to ROA — 3 to 4 bps on OPEX by year end · FY27 year end
stated conditionally by Rakesh Bhatia
p. 29
“From here on till for the year end, I think it'll be like 3 to 4 bps, which will come on the OPEX as we look at reducing cost income sequentially.”
Rakesh Bhatia, page 29 of the filed PDF · View the filing
Affordable and Micro Housing combined growth — closer to around 30%
stated as an aspiration by Sarosh Amaria
p. 28
“Combined, we will be growing at closer to around 30% in this segment between Affordable and Micro.”
Sarosh Amaria, page 28 of the filed PDF · View the filing
Micro Housing AUM growth — 100% this financial year, 50% to 60% subsequent year · FY27 and FY28
stated as an aspiration by Sarosh Amaria
p. 28
“we plan to grow it by 100% for this financial year and maybe another 50% to 60% for the subsequent year.”
Sarosh Amaria, page 28 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management explained disbursements in high-margin products are growing faster than book, and the book will catch up over coming quarters, aiding margins.
Answered by Rajiv Sabharwal
Asked by Nischint Chawathe: What is Slide 22 trying to communicate about disbursement and book growth?
p. 18
“our disbursements have grown by 38%, and our book has grown by about 10%.”
Rajiv Sabharwal, page 18 of the filed PDF · View the filing
Management indicated Corporate has likely maxed out and Retail/SME will drive future growth while staying within the 85-88% band.
Answered by Rajiv Sabharwal
Asked by Nischint Chawathe: How will Corporate loan growth interplay with the Retail/SME mix target?
p. 19
“I do agree probably we have maxed out on the Corporate and you should see more growth happening on Retail and SME.”
Rajiv Sabharwal, page 19 of the filed PDF · View the filing
CFO explained the increase is due to ageing mix of Stage-3 assets, not changes to PD/LGD assumptions.
Answered by Rakesh Bhatia
Asked by Shreya Shivani: Why has PCR picked up across some segments?
p. 20
“the increase in PCR is primarily on account of the mix of Stage-3 assets based on the ageing which happens once it hits Stage-3 after 90 days.”
Rakesh Bhatia, page 20 of the filed PDF · View the filing
CFO said the company aims to operate 200-250 bps above regulatory thresholds and expects to be well capitalized until mid-to-late 2028.
Answered by Rakesh Bhatia
Asked by Avinash Singla: What is the comfort level on capital and Tier-1 before needing to raise more?
p. 21
“at Tata Capital our endeavor is to operate at least 200 to 250 basis point above the mandated thresholds on the capital adequacy in the CET1s.”
Rakesh Bhatia, page 21 of the filed PDF · View the filing
CFO confirmed no material impact between Q4 and Q1.
Answered by Rakesh Bhatia
Asked by Viral Shah: Any impact of calendar days on margins this quarter?
p. 22
“there's no impact as such on number of days between Q4 and Q1, to your question.”
Rakesh Bhatia, page 22 of the filed PDF · View the filing
Management said bounce rates continue to improve month-on-month.
Answered by Rajiv Sabharwal
Asked by Viral Shah: Are bounce rates changing versus last review?
p. 22
“our bounce rates continue to improve month-on-month. That's been the trend, including this current month.”
Rajiv Sabharwal, page 22 of the filed PDF · View the filing
Management expressed confidence in holding the guided credit cost range, noting the gold loan business is safer than other segments.
Answered by Rajiv Sabharwal
Asked by Anand Dama: Is the credit cost guidance of about 1% achievable given new products and macro conditions?
p. 23
“we are fairly confident of keeping the credit costs within the guidance which we have given.”
Rajiv Sabharwal, page 23 of the filed PDF · View the filing
Management said margins are expected to improve about 10 bps for the year through higher yields and mix shift, outpacing the cost of funds increase.
Answered by Rajiv Sabharwal
Asked by Anuj Singla: How will margins evolve over the next three quarters given rising funding costs?
p. 24
“we expect margins to improve by about 10 basis points.”
Rajiv Sabharwal, page 24 of the filed PDF · View the filing
Management confirmed sticking to the original FY28 timeline for 2% ROA.
Answered by Rajiv Sabharwal
Asked by Anuj Singla: Is there a change in timeline for the Motor Finance 2% ROA target given strong turnaround?
p. 24
“we want to stay with our stated objective of getting to a 2% ROA by FY28.”
Rajiv Sabharwal, page 24 of the filed PDF · View the filing
Management cited brand trust, cost of funds advantage, and technology/operational excellence as differentiators.
Answered by Rajiv Sabharwal
Asked by Sajal Raj: What is Tata Capital's differentiated opportunity in the competitive gold loan market?
p. 25
“our advantage lies on a few aspects. One, obviously, our brand, which signifies trust. Second, we do believe that our cost of funds gives us an advantage.”
Rajiv Sabharwal, page 25 of the filed PDF · View the filing
CFO clarified that normalized for appraisal cycle change, YoY OPEX growth is 16%, and reiterated the ROA improvement split of two-thirds margins and one-third OPEX by FY28.
Answered by Rakesh Bhatia
Asked by Abhijit Tibrewal: When will stronger operating leverage or OPEX improvement show up given elevated YoY OPEX growth?
p. 26
“If we normalize for that, the YoY growth will start at 16%, not 21% what you alluded to.”
Rakesh Bhatia, page 26 of the filed PDF · View the filing
Sarosh Amaria detailed growth plans of doubling Micro Housing this year and combined growth of about 30% for Affordable and Micro.
Answered by Sarosh Amaria
Asked by Vijay Sharma: What is the AUM growth target for the Micro and Affordable Housing book?
p. 28
“this book is around Rs. 1200 crores and we plan to grow it by 100% for this financial year and maybe another 50% to 60% for the subsequent year.”
Sarosh Amaria, page 28 of the filed PDF · View the filing
Risks flagged
Elevated energy prices and geopolitical tensions could moderate GDP growth
p. 13
“we expect GDP growth to moderate from FY26's strong base as elevated energy prices from prolonged geopolitical tensions start to weigh in.”
Rajiv Sabharwal, page 13 of the filed PDF · View the filing
Monsoon and El Nino related risks to food inflation and rural demand
p. 13
“we are also monitoring the impact of El Niño and monsoon-related risks given their potential effect on food inflation and rural demand.”
Rajiv Sabharwal, page 13 of the filed PDF · View the filing
Conservative stance on commercial vehicle and construction equipment segments due to fuel price pass-through risk
p. 8
“we did go a little conservative on certain segments. For example, the commercial vehicle segment and construction equipment segment because we felt that if the fuel prices will get fully passed on to the final borrower, it could have an impact on the profitability of those businesses.”
Rajiv Sabharwal, page 8 of the filed PDF · View the filing
MSMEs with high reliance on petro-products flagged as an area of caution
p. 8
“Similarly, certain MSMEs which have a high reliance on petro-products. So those are the areas in which we went a little conservative.”
Rajiv Sabharwal, page 8 of the filed PDF · View the filing
Volatility in bank and debt market borrowing costs during the quarter
p. 26
“the first half of or last week of March and first half of April was quite volatile.”
Rakesh Bhatia, page 26 of the filed PDF · View the filing
Uncertainty in pricing for potential policy rate hikes
p. 29
“it's very difficult to pencil in an increase when you don't know whether it's going to happen or not, or how much increase will happen.”
Rajiv Sabharwal, page 29 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.