Tata Capital shares rally 4% after Q1 profit surges 56%; AUM nears Rs 3 lakh crore

Tata Capital shares climbed 3.67% to Rs 367.95 during Wednesday's trading session after the company reported a strong set of earnings for the first quarter of FY27, driven by robust growth in profit, revenue, and its lending business.

The Tata Group-backed NBFC posted a consolidated net profit of Rs 1,547 crore for the April-June quarter, registering a 56% year-on-year (YoY) increase from Rs 990 crore reported in the corresponding quarter of the previous financial year.

Revenue from operations also remained healthy, rising 15% YoY to Rs 8,822 crore, compared with Rs 7,665 crore in Q1 FY26, reflecting sustained business momentum.

Lending business remains the key growth driver

Tata Capital's assets under management (AUM) expanded 22% YoY to Rs 2.91 lakh crore, while excluding the motor finance business, AUM recorded an even stronger 28% YoY growth.


The company's net loan book grew 23% YoY to Rs 2.29 lakh crore, supported by healthy credit demand. Net interest income (NII) increased 25% YoY to Rs 2,866 crore, underscoring strong core lending performance.

Meanwhile, the cost-to-income ratio improved marginally to 36.4% from 36.8% in the year-ago quarter, indicating continued operational efficiency.

Tata Capital's net profit margin improved to 17.54%, compared with 12.92% in Q1 FY26, although it eased sequentially from 18.41% reported in Q4 FY26.

The company's net worth surged 42% YoY to Rs 46,261 crore, while the annualised return on assets (ROA) improved to 2.3% from 1.8% a year ago. Annualised return on equity (ROE) rose to 13.7%, and the capital adequacy ratio remained healthy at 18.5%.

Tata Capital enters the gold loan segment

Alongside its quarterly results, Tata Capital announced its entry into the fast-growing gold loan business through the acquisition of Yogloans, an RBI-registered non-banking financial company focused on gold-backed lending.

The company will acquire an 88.6% stake in Yogloans through a share subscription and purchase agreement, based on a pre-money equity valuation of up to Rs 318 crore. The acquisition is expected to strengthen Tata Capital's secured lending portfolio and expand its presence in the retail finance segment.

Share Price, Valuation, and Technical Indicators

Following the earnings announcement, Tata Capital shares traded around Rs 368, taking the company's market capitalisation to approximately Rs 1.51 lakh crore. The stock is trading close to its 52-week high of Rs 379.95, reflecting sustained investor optimism.

From a valuation perspective, the stock trades at a price-to-earnings (P/E) ratio of 30.71, a price-to-sales (P/S) ratio of 4.08, and a price-to-book (P/B) ratio of 3.16.

On the technical front, the stock's 14-day Relative Strength Index (RSI) stands at 55.5, suggesting neutral momentum, with RSI readings below 30 considered oversold and above 70 viewed as overbought. Additionally, Tata Capital is trading above all seven of its key simple moving averages (SMAs), indicating a strong bullish trend.

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