• AUM growth outlook: Tata Capital is targeting 23% to 25% medium-term AUM growth, anchored by housing loans growing at 24%+, retail, and SME, which collectively comprise 85.4% of the total book. Higher-margin products like micro housing, affordable housing, and retail unsecured lending (10.3% of the book) are slated to outpace overall growth in the second half of the fiscal year.
• Profitability and margins: The company expects a 10 basis point margin expansion this year and aims to scale return on assets (ROA) from 2.3% (2.5% excluding motor finance) to 2.5%–2.7% by FY28. Management expects two-thirds of this ROA improvement to be driven by margin expansion and one-third by operating efficiency.
• Credit cost trajectory: Credit costs dropped by 60 basis points year-on-year to 1%, achieving the sub-1% FY28 guidance a year ahead of schedule. Within the transforming Tata Motor Finance segment, cost-to-income has decreased from 70% to 55% alongside falling credit costs.
• GenAI productivity gains: Deploying GenAI across credit, customer service, and sourcing lifted credit productivity by roughly 40% and automated 80% of marketing creatives. This enabled Tata Capital to grow AUM by over 22% with only a 5% workforce addition and zero operations headcount additions over three years.