Tata Capital Q2 profit jumps 63.71% as margins widen
Revenue grew +20.74% YoY while expenses fell -0.24%; a lower tax rate also supported earnings growth.
Filed 27 Oct 2026, 16:52 IST · after market close · Tata Capital Ltd (TATACAP)
Key takeaways
- Consolidated net profit rose +63.71% YoY as revenue grew +20.74% and operating margin widened 4.80 percentage points.
- Operating margin reached 77.2%, 15.91 percentage points above the 61.29% median for 33 reported Financial Services peers.
- Management said TCHFL's net AUM grew +26% YoY to Rs 95,098 cr, alongside a 23-location expansion in Affordable and Micro Housing.
Price around the results
Revenue growth translated into wider margins
On a consolidated basis, revenue rose +20.74% YoY and +5.89% QoQ, while expenses declined -0.24% YoY and -0.58% QoQ. That operating leverage widened the margin by 4.80 percentage points YoY and 1.49 percentage points QoQ. Net profit growth therefore outpaced revenue growth, rising +63.71% YoY and +12.51% QoQ.
Lower tax aided profit; other income was immaterial
The tax rate fell 2.60 percentage points YoY and 1.44 percentage points QoQ, which supported the increase in net profit. Interest expense rose +17.72% YoY and +7.10% QoQ, including faster growth than revenue on a sequential basis. Other income contributed only 0.73% of pre-tax profit, so reported earnings were not materially dependent on it.
Margin momentum remains intact against peers
Operating margin has risen each quarter from 72.4% in Q2FY26 to 77.2% in Q2FY27, extending the sequential improvement seen in the previous quarters. Tata Capital's margin was 15.91 percentage points above the 61.29% median among 33 Financial Services peers that had reported. The year-on-year comparison is also favourable, with operating profit up +28.74% despite interest expense rising +17.72%.
Management links expansion to the housing franchise
The presentation said TCHFL's net AUM grew +26% YoY to Rs 95,098 cr in Q2FY27. Management also said the Affordable and Micro Housing footprint expanded by 23 locations versus Q1FY27. It reported approximately 370 branches in September 2026, compared with 57 in March 2019.
Market reaction is still pending
The results were filed after market close, so there is no current market reaction to assess. After the four recent result announcements in the history provided, the stock fell three times and rose once, with a median absolute move of 1.42%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹9,342 cr | ₹8,822 cr | +5.89% | +20.74% |
| Other income | ₹17 cr | ₹4 cr | +330.79% | +9.38% |
| Expenses | ₹2,130 cr | ₹2,143 cr | -0.58% | -0.24% |
| Operating profit | ₹7,212 cr | ₹6,679 cr | +7.97% | +28.74% |
| Operating margin (%) | 77.20% | 75.71% | — | — |
| Interest | ₹4,680 cr | ₹4,370 cr | +7.10% | +17.72% |
| Depreciation | ₹165 cr | ₹154 cr | +7.19% | +22.35% |
| Profit before tax | ₹2,384 cr | ₹2,159 cr | +10.40% | +58.16% |
| Tax | ₹552 cr | ₹531 cr | +3.91% | +42.17% |
| Net profit | ₹1,832 cr | ₹1,628 cr | +12.51% | +63.71% |
| EPS (₹) | ₹3.91 | ₹3.65 | +7.12% | +43.22% |
Operating margin of 77.20% compares with a Financial Services sector median of 61.29% across 33 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- TCHFL reported 26% year-on-year growth in net AUM to ₹95,098 crore in Q2FY27.
- TCHFL expanded its Affordable and Micro Housing footprint by 23 locations versus Q1FY27.
Expansion
- Branches increased from 57 in March 2019 to approximately 370 in September 2026.
- The company expanded its Affordable and Micro Housing footprint by 23 locations versus Q1FY27.
Competition
- TCHFL states that it is among the top originators in affordable home loans.
What to watch
- Whether consolidated operating margin holds above 77.2%.
- Whether the +26% YoY net-AUM growth cited by management is sustained.
- The next disclosed footprint after the 23-location Affordable and Micro Housing expansion.