Tata Capital

“We don't want to revise anything. We will look at the end of the year if we want to revise on the upward side, but we are not looking at revising anything below.”

“We are on track to deliver on our guidance across all parameters”

“As far as our Q3 assessment is concerned, we expect the NIM plus fee in Q3 not to have any further drag. In fact, we expect it to be stable or marginally getting better, but more towards being stable.”

“And based on all the measures which we have taken, our Q4 NIM plus fee should show an improving trend.”

“Looking ahead, we remain on track to deliver our medium-term guidance with operating leverage expected to be an important lever of further improvement in ROA.”

“We expect the portfolio to stabilize in Q3 and start growing from Q4. That's the plan as far as Motor Finance is concerned.”

“In fact, proportion of that book used to be 14.5% in our total book in March '25, which is now down to about 7.7%.”

“During the quarter, Tata Capital Housing Finance Limited reported a profit after tax of INR552 crores. ROA stood at 2.5% and ROE at 18.0%.”

“AUM reached INR95,098 crores, growing by 26% year-on-year and 6% sequentially.”

“expanded in Q2, but our Q3 and Q4 expansion of number of locations is even stronger as per our plan compared to Q2, and that should help us as far as affordable and micro housing is concerned.”

“So, actually, if you look at the demand it is quite buoyant, I would say. We do get a sense from a few areas. First of all, in this period, you see very good two-wheeler sales and PV sales happening”

“As far as rural markets are concerned, I think at this point of time, there is some bit of lag or let me say, growth rate which is slower in rural markets compared to the urban markets.”

“In response to the repo rate hike and the evolving interest rate environment, our ALCO has approved a 20 to 25 basis points increase in PLRs across products in the floating rate portfolio.”

“It took a decision of increasing the rates by 25 basis points, that's what the Tata Capital ALCO decided. Tata Capital Housing Finance decided to increase rates by 20 basis points, and both the increases would be effective from 1st of November.”

“As far as NIM is concerned, we've seen a drop in Q2 compared to Q1 by about 10 basis points. This is primarily coming in because of two reasons: about 5 bps happening because of increase in cost of funds, which is also in our investor presentation.”

“And another 5 bps impact is happening more because of competitive intensity in the prime home loans business.”

“but our modified products are almost at a similar price like the flexi loans.”

“Consequently, we expect marginal funding costs to rise progressively and overall funding conditions to become less accommodative over the following months.”

“Our cost of funds increased marginally from 7.28% in quarter 1 FY27 to 7.33% in quarter 2 FY27.”

“Total borrowings stood at approximately INR2.61 lakh crores as of September 2026.”

“If you look at our liabilities, 48% of our liabilities are floating rate liabilities. On the asset side, 66% of our assets are floating.”

“As of September 2026, consolidated equity stood at INR47,778 crores and debt-to-equity at 5.5x.”

“If you look at the current growth trajectory, we think we'll be required to raise capital by second half of FY28, more towards Q3-Q4.”

“We felt that more than half of that we can do here. So, we are already testing some of the alternate products, which we have created in the market. And the balance, we will start testing in the beginning of November.”

“So, Manju, we do not have a gold portfolio at this point of time. Our organic business should start in the coming month with the launch of that business.”

“That's why you have a separate line in the LODR which shows a gain of INR186 crores. But if I take out the amount which pertains to the other LPs, only INR27 crores of it flow into the PAT of Tata Capital.”

“If you noticed from our numbers in the past, Q2 is the quarter which has the highest growth in NPAs and which moderates down in Q3 and then further in Q4.”

“You are right. Majority of it does come from a portfolio before March '25.”

“because I would say 90% of what we do here goes to SME customers and more so MSME customers.”

“While the proposed changes could have implications for the industry, it is premature to quantify the impact until the final regulations are issued.”

“We've also looked at how we can improve our NIM plus fee on our normal business, which does not come with insurance. And also, if we do not sell insurance, it will also bring down our operating costs, which will also be beneficial.”

“We have not looked at the options. But since you've suggested, we will again reevaluate and see what we need to do.”

“Turning to our performance, consolidated AUM crossed the INR3 lakh crores milestone and stood at INR3,08,030 crores, growing at 26% year-on-year and 6% sequentially.”

“Consolidated profit after tax for the quarter stood at INR1,660 crores, registering a growth of 51% year-on-year and 7% sequentially.”

“Return on assets stood at 2.3%, which excluding Motor Finance was 2.5%. Our ROE stood at 14%.”

“Consolidated disbursements increased by 29% year-on-year to INR51,665 crores, supported by healthy growth across businesses.”