Tata Capital Q2 FY27 results: net profit up 63.7% to ₹1,832 crore, revenue up 20.7%

How did Tata Capital perform in Q2 FY27?

Tata Capital reported consolidated revenue of ₹9,342 crore for Q2 FY27, against ₹7,737 crore in Q2 FY26 and ₹8,822 crore in Q1 FY27. Net profit was ₹1,832 crore, compared with ₹1,119 crore a year earlier and ₹1,628 crore in the previous quarter. Profit attributable to owners was ₹1,660 crore, while basic EPS was ₹3.91.

The company did not disclose EBITDA or EBITDA margin in the consolidated quarterly figures. The standalone figures were revenue of ₹6,710.47 crore and net profit of ₹1,143.26 crore, with standalone profit before tax of ₹660.61 crore and revenue growth of 20.2%. Consolidated profit margin rose to 19.6% from 14.5% in Q2 FY26 and 18.5% in Q1 FY27.

What changed in Tata Capital's costs and profit?

Total expenses increased 11.7% year on year to ₹6,976 crore, below the 20.7% rise in revenue. Finance costs were the largest cost line at ₹4,680 crore, up ₹704.43 crore or 17.7% from Q2 FY26; employee cost rose ₹65.57 crore or 9.1% to ₹787.55 crore.

Other expenses increased ₹57.42 crore or 9.0% to ₹697.63 crore, while depreciation rose ₹30.22 crore or 22.4% to ₹165.43 crore. Other income was ₹14.30 crore, up ₹1.83 crore or 14.7%, and there was no exceptional item. Tax expense rose ₹163.64 crore or 42.2% to ₹551.69 crore.

Against Q1 FY27, total expenses rose ₹308.86 crore or 4.6%. Finance costs increased ₹310.10 crore, employee cost rose ₹29.35 crore and depreciation rose ₹11.10 crore, while other expenses fell ₹8.45 crore or 1.2%. Other income rose ₹10.85 crore, tax increased ₹20.75 crore and there was no exceptional item.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹18,164 crore, up ₹2,761.75 crore or 17.9% from ₹15,402 crore in H1 FY26. Total income rose 17.7% to ₹18,181 crore from ₹15,441 crore, while profit before tax increased 57.3% to ₹4,539 crore.

Net profit for the first half was ₹3,460 crore, compared with ₹2,160 crore in H1 FY26, an increase of ₹1,300.16 crore or 60.2%. Basic EPS rose by ₹2.35 or 45.1% to ₹7.56 from ₹5.21.

What do the balance sheet and cash flow show?

Total assets increased to ₹319,238 crore at 30 September 2026 from ₹290,504 crore at 31 March 2026, while total equity rose to ₹50,469 crore from ₹47,107 crore. Cash fell to ₹2,230 crore from ₹3,641 crore; a comparable borrowings figure was not included in the supplied results data.

H1 FY27 operating cash flow was an outflow of ₹25,817 crore, compared with an outflow of ₹10,350 crore in H1 FY26. Investing cash flow was an inflow of ₹238.54 crore against ₹216.50 crore, financing cash flow was an inflow of ₹24,165 crore against ₹3,983 crore, and capital expenditure was ₹425.65 crore versus ₹726.98 crore.

How has Tata Capital done over the last 5 quarters?

Revenue increased in each of the last five quarters, from ₹7,737 crore in Q2 FY26 to ₹9,342 crore in Q2 FY27, with the current quarter marking the highest level in the series. Net profit also rose across the period, moving from ₹1,119 crore to ₹1,832 crore and reaching its highest level in Q2 FY27.

The supplied quarterly trend did not include EBITDA margins, so no revenue or profit margin peak can be identified from it. The latest direction was upward for both revenue and net profit. No multi-quarter streak was provided.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. The joint statutory auditors issued limited review reports with an unmodified opinion.

The board also approved enhancing the existing medium term note programme from USD 2 billion to USD 3 billion and, subject to market conditions, issuing foreign currency bonds or debt instruments in one or more tranches through external commercial borrowings. The same-day filing stated that disclosure on the programme would be provided when the instruments are priced.

What did Tata Capital's management say?

Management retained FY28 guidance of 23%–25% AUM CAGR for FY25–FY28E, over 30% PAT CAGR for FY25–FY28E, cost to income of 33%–34%, credit cost below 1.0%, net NPA below 1.0% and ROA of 2.5%–2.7%. Management said high-margin retail disbursements grew 40% year on year against 14% AUM growth and expects book growth to catch up subsequently.

The presentation said the average cost of borrowings rose 5bps sequentially to 7.3% in Q2 FY27. Total borrowings were ₹2,60,846 crore, or 5.5x total equity, against a liquidity buffer of ₹36,398 crore as of September 2026. It also said Motor Finance net AUM fell ₹9,922 crore between March 2025 and September 2026, while the commercial vehicle cycle was being closely monitored.

How did Tata Capital shares react?

The results were filed after market hours. From the price when the filing appeared, Tata Capital fell 1.1% after 5 minutes, 0.6% after 15 minutes and 0.8% after 30 minutes. On the reaction day, the stock closed 2.0% above its pre-results close.

By the next day's close, the stock was up 7.3% from its pre-results close, and by the fifth session it was up 11.7%. The NBFC industry median moved 0.0% on the reaction day, 0.1% by the next close and 1.1% by the fifth session, leaving Tata Capital ahead by 2.0, 7.1 and 10.5 percentage points, respectively.

Earlier reaction-day moves were 1.1% on 28 July 2026, -1.2% on 23 April 2026, -0.6% on 19 January 2026 and -1.3% on 28 October 2025.

How did other Non Banking Financial Company (NBFC) companies do?

Among 77 NBFC peers compared for revenue growth, the median was 21.6%, above Tata Capital's 20.7% growth for Q2 FY27. Thirty-six peers grew more slowly than Tata Capital, while 41 grew faster. Among 85 peers compared for profit, 56 reported higher profit.