Tata Capital Stock Soars on Strong Q1 Results

Tata Capital's stock experienced a notable surge of up to 6.5% in early trading on Wednesday, following the announcement of strong financial performance for the June quarter of fiscal year 2027 (Q1FY27).

The non-banking lender reported a consolidated profit of ₹1,547 crore for the quarter, marking a substantial 56% increase compared to the same period last year. This growth was underpinned by a 25% year-on-year rise in net interest income, which reached ₹3,571 crore.

Key to this performance was a 22% expansion in Assets Under Management (AUM) to ₹2.9 trillion. The company's asset quality also showed positive development, with the gross stage 3 ratio improving to 1.9% from 2.1% in the prior year's June quarter.

Looking ahead, Tata Capital has set ambitious growth targets, particularly in the recently acquired gold loan business, aiming for a five-fold increase in AUM within three years. Analysts maintain a constructive outlook, with one firm reiterating a 'Neutral' rating and a target price of ₹390, suggesting a potential 10% upside from previous closing levels.