Q1 2027 Tata Capital Ltd Earnings Call Transcript
Key Points
- Tata Capital Ltd (NSE:TATACAP) reported a strong start to FY27 with a consolidated profit after tax of 1,547 crores, up 56% year-on-year.
- The company's consolidated AUM grew by 28% year-on-year, excluding the motor finance business, indicating robust growth across core businesses.
- Asset quality remains a core strength with credit costs stable at 0.05% and net NPS at 0.3%, positioning Tata Capital among the best-performing players in the housing finance sector.
- The acquisition of Yogloans is expected to expand and diversify Tata Capital's lending franchise, particularly in the gold loan segment.
- Tata Capital successfully raised USD $400 million through a fixed-rate senior unsecured bond, which was oversubscribed four times, indicating strong investor confidence.
- The macroeconomic environment poses challenges with elevated energy prices and geopolitical tensions potentially impacting GDP growth.
- The cost of funds increased to 7.28% in Q1 FY27 from 7.15% in the previous quarter, reflecting a slight uptick in funding costs.
- The motor finance business showed a sequential decline in the book due to a measured growth approach amid geopolitical uncertainties.
- Despite strong growth, the corporate loan segment may have maxed out, with future growth expected to focus more on retail and SME segments.
- The company faces competitive pressures in the gold loan market, requiring strategic differentiation to capture market share.
Being recorded.
Ladies and gentlemen, good day and welcome to the Tata Capital Q1 FY27 Earnings Conference Call.
As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the call, please signal an operator by pressing then zero on your touchstone phone.
I now hand the conference over to Mr. Raghav Garg from Ambit Capital.
Thank you, and over to you, sir.
Thank you.
Good evening, and on behalf of Ambit Capital.
I would like to thank the management of Tata Capital for the opportunity to host their 125-27 earnings call.
Joining us from the management today, we have Mr. Rajeev Tabarwal, Indian CEO, Mr. Akesh Bhatia, PFO, and Mr. Indeed Tapati, Head of Strategy and Investor Relations.
We can now begin with the opening remarks from Mr. Rajeev Tabarwal, and post that we can open the floor for
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