Tata Capital profit rises 51.3% to 1,660 crore rupees in second quarter
Key Facts
Tata Capital’s net profit rose to 1,660 crore rupees in the second quarter of fiscal 2027, up 51.3% from 1,097 crore rupees in the year-earlier quarter, according to figures reported by NDTV Profit, citing the company’s exchange filing. Profit growth outpaced the increase in total income, which rose 20.7% to 9,356 crore rupees from 7,749 crore rupees in the comparable period. Both results reflect year-on-year improvement in profit and income, with the gap between their growth rates widening. The 9,356 crore rupees figure refers to total income as reported in the filing and is not a direct measure of operating revenue. Investors will focus in the coming period on whether net interest margin expands as management targets in the second half of the fiscal year.
Second-quarter fiscal 2026 results provide a comparison for quarterly profitability: profit after tax then rose 11% quarter on quarter to 1,097 crore rupees, from 990 crore rupees in the first quarter. Total net income also increased 4% to 3,774 crore rupees, from 3,626 crore rupees in the previous quarter, according to a company statement. This quarter-on-quarter comparison differs from the reported annual profit growth for the second quarter of fiscal 2027; the two rates therefore do not measure the same period. In an earlier statement on the second quarter of fiscal 2026, Chief Executive Rajiv Sabharwal said assets under management, excluding auto finance, grew 22% year on year. He added that growth was driven by continued expansion across all segments, and that credit quality remained strong across categories.
On credit risk, an NDTV Profit report cited stable asset quality and early delinquency trends. It also reported that the company is closely monitoring some small and medium-sized enterprise segments because of their exposure to macroeconomic factors and oil prices. This monitoring puts asset quality among the areas to watch alongside the goal of expanding net interest margin, without changing the reported profit and income figures. The report did not provide separate figures for the size of the segments being monitored or their financial impact. JPMorgan maintained its Overweight rating on the stock in September, citing net interest margin growth, and set a price target of 395 rupees.
Tata Capital shares rose 0.30% to close at 300.45 rupees on October 27, while the Nifty 50 fell 0.02%, according to NDTV Profit. The stock traded between 298.35 and 303.35 rupees during the session after opening at 299.55 rupees, the same as its previous closing price. The session’s move marked a modest gain compared with the 8.65% year-on-year decline through October 27, 2026. The stock’s rise that day therefore coincided with continued negative annual performance, while the gains in profit and total income in the filing were reported on a year-on-year basis. The company’s management is targeting an expansion in net interest margin in the second half of fiscal 2027, the next guidance cited in the report.