Tata Capital shares rose 6.4% after Q1 FY27 results, moving close to their record high as net profit jumped 56% YoY to ₹1,547 crore. Strong AUM growth, higher NII and improved profitability supported investor sentiment, while the company’s entry into gold loans through the Yogloans acquisition added further interest.
The stock prices of NBFC Tata Capital, which is supported by Tata Group, rallied on Wednesday amid positive Q1 FY27 performance. The price of Tata Capital jumped 6.40% to ₹377.70 from the last closing of ₹354.95, pushing the market capitalisation of the company to ₹1.56 lakh crore.
The stock price moved near its all-time high of ₹379.10, marked on June 19, 2026. Previously, the stock price of Tata Capital fell to its 52-week low of ₹296.05 on June 2, 2026. The stock is now trading above its simple moving average for five days, ten days, twenty days, thirty days, fifty days, one hundred days, and one hundred fifty days.
Why Tata Capital Stock Surged After Q1 Results
This jump was due to the financial success achieved by Tata Capital for its April-June quarter in FY27. For the quarter ending on June 30, the company reported an increase in PAT by 56% YoY to ₹1,547 crore from ₹990 crore in Q1 FY26.
Total net income jumped 23% YoY to ₹4,455 crore from ₹3,626 crore in the same period a year ago. Income from operations rose by 15% YoY to ₹8,822 crore from ₹7,665 crore.
The main catalyst for the growth of the company was the lending segment, where AUM went up 22% YoY to ₹2,90,502 crore as on June 30, 2026, from ₹2,37,508 crore a year ago. The AUM growth rate was even better at 28%, excluding motor finance business.
Tata Capital’s net loan book increased 23% YoY to ₹2.29 lakh crore, while net interest income (NII) climbed 25% to ₹2,866 crore. Operational efficiency also improved, with the cost-to-income ratio declining marginally to 36.4% from 36.8% in the corresponding quarter.
The company’s net profit margin improved to 17.54% from 12.92% in Q1 FY26, although it moderated from 18.41% in Q4 FY26. Net worth increased 42% YoY to ₹46,261 crore, while annualised return on assets (RoA) improved to 2.3% from 1.8%. Annualised return on equity (RoE) stood at 13.7%, and the capital adequacy ratio remained healthy at 18.5%.
Tata Capital Expands Gold Loan Business
Apart from the financial performance numbers, Tata Capital has also made public the news of their foray into the gold loan market with the acquisition of Yogloans, an RBI registered non-banking financial company that specializes in lending against gold assets.
Tata Capital will be making an 88.6% acquisition of Yogloans by subscribing and purchasing shares at a pre-money valuation of Yogloans up to ₹318 crore.
Tata Capital Valuation and Market Performance
Tata Capital's stocks have been trading around the ₹368-₹377 range following the release of their earnings. Currently, the P/E ratio for this stock is 30.71, while the P/S ratio and the P/B ratio are 4.08 and 3.16, respectively.
Its market entry was rather modest, as it was listed at ₹330 – a 1.23% premium from its IPO listing price of ₹326. The IPO itself opened on October 6-8, last year, with a price range of ₹310-₹326 per share.
