Thank you very much, and welcome to everyone who is joining the call. Good evening and thank you for joining us.

Let me start with the macro environment. FY26 was a strong year for the Indian economy with a real GDP growth at 7.7%, supported by strong domestic consumption and investment activity.

Credit demand continued to remain healthy in the first quarter of FY27 across both banking and non-banking channels, reflecting sustained underlying economic momentum. While inflation has remained broadly manageable, we continue to monitor movements in food prices, rural demand trends, and the evolving geopolitical environment.

On the monetary policy front, RBI maintained its policy rate and continued to support liquidity conditions, helping sustain credit growth across the financial system. Looking ahead, while global uncertainties and elevated energy prices could moderate growth for FY26—from a high base—India's underlying macroeconomic fundamentals continue to remain strong, supported by healthy domestic demand and investment activity.

We remain watchful of geopolitical developments, inflationary trends, and monsoon-related risks, but continue to see a broadly supportive environment for credit growth. Before I dive into the operating performance for the quarter, let me share two key developments.

First, our entry into gold loans business marks an important step in further diversifying Tata Capital's retail lending portfolio. We believe the combination of Yogloans' domestic expertise and branch network with Tata Capital's brand, technology, and risk management capabilities will help create a compelling platform for future growth in secured lending.

Secondly, we also successfully raised USD 400 million through an international bond issuance that was oversubscribed four times. The strong response from global investors reflects confidence in Tata Capital's franchise and further strengthens our diversified funding platform and access to international capital markets.

Now, let me turn to the key highlights for the quarter. Consolidated performance: our assets under management stood at 2.91 lakh crore, up 22% year-on-year and up 5% sequentially.

If I exclude motor finance business, which we acquired from Tata Motors, our AUM grew by 28% year-on-year. Credit cost for quarter one FY27 was 1% versus 1.6% for quarter one of FY26, so that's a significant drop.

Profit after tax for the quarter stood at 1,547 crore, up 56% year-on-year and 3% sequentially. Our net NPA declined by 10 basis points sequentially to 0.8%.

Our ROA stood at 2.3% consolidated, including the motor finance business. If I exclude the motor finance business, which we acquired from Tata Motors, our ROA stands at 2.5%.

Tata Capital Housing Finance performance continued to perform extremely well for us. Their AUM increased 24% year-on-year to 89,416 crore.

Our credit cost continued to be very low in this business at 0.05%. Profit after tax for the quarter was up 29% year-on-year to 532 crore.

Our focus on affordable housing and loan against property continues to support margin expansion and portfolio diversification. Overall business momentum remains strong during the quarter, supported by healthy growth across all businesses.

Our core focus remains as retail and SME lending, which together constitutes 85.4% of our portfolio, providing a structurally granular and resilient growth profile. We expanded our distribution network to 1,491 branches across 1,091 locations, serving approximately 8.8 million customers through our phygital model and deepening our presence across India.

Our AAA credit rating continues to support a diversified and stable funding profile. Total borrowings stood at approximately 2.45 lakh crore, while we maintained a strong liquidity buffer of around 29,000 crore.

In quarter one, our cost of funds stood at 7.28%. Despite a marginal increase in funding cost during the quarter, we remain well positioned to support growth while navigating market volatility.

For quarter one of FY27, our cost to income stood at 36.4%, showing an improvement of 190 basis points over quarter four of FY26. Artificial intelligence is increasingly driving scale and efficiency across Tata Capital.

From 98% digital onboarding and AI-led underwriting to 40% productivity gains in operations and stronger collection outcomes, our AI initiatives are enhancing customer experience, operational excellence, and risk management across the franchise. We have seen not only deployment ahead of AI, but also the benefits of AI accruing to us.

The transformation of our motor finance business remains on track. We continue to focus on portfolio diversification, disciplined growth, and operational efficiency while maintaining profitability and stable asset quality.

Our focus on motor finance remains on creating a portfolio which we do believe can stand the test of time, our focus continues to be on building a portfolio which on this parameter would remain good at all times. To conclude, we remain focused on building a larger, stronger, and more resilient financial services franchise, supported by healthy business momentum, improving asset quality, and a robust balance sheet.

Along with diversified funding profile, we continue to invest in technology and AI. We do believe we are well positioned to deliver sustainable growth and create a long-term value for all our stakeholders.

With that, we are happy to open the floor for questions.

Thank you. Good evening, everyone.

Mr. Sabharwal, I will start off the question with the acquisition of Yogloans.

If you could elaborate more on the strategy and what kind of AUM are you looking forward on two to three-year basis? Two more questions to add on, since you've spoken about artificial intelligence.

Your peers are also very bullish about AI, and in all through the investor presentation, in fact. What kind of operational cost difference do you see on the AI usage?

Thirdly, on the co-lending market, how has the market been since the new norms have been made effective from 1st of January? How active are you in co-lending?

Are you seeing more partnerships coming up to you? Thank you.

Thank you, Shrishti. Gold loans is a very large market and we've been looking at this market very carefully.

We are happy that we could make an entry through this acquisition. It's a small company, but run very well, and it comes with not only a portfolio, but also expertise which is there.

We also have organically started building our strategy for growing the gold loan business. While we have applied to RBI and for seeking their approval for acquisition of this entity, we expect the approvals to come towards the end of this calendar year.

From the time we acquire, over the next 2.5 to 3 years, we expect to add close to about 500-plus branches and build a portfolio of approximately 4,000 to 5,000 crore over the next three years.

Sure. The other two on AI and co-lending, please?

Yeah. Sorry.

The other question on AI, we are extremely bullish on the use of technology. We've always been among the first users or early adopters of anything new which is coming in.

In AI also, we have done the same. We've been working on this, and if you would notice, we are already seeing the benefits of the same accruing.

If you've seen our investor presentation, the number of people which we've added is very small compared to our AUM growth which we have seen in our business. The benefit will accrue to us on many parameters, whether it is in terms of cost of doing business, in terms of faster acquisition, ability to cross-sell better.

All of these would be benefits which will be coming to us. If you notice, our cost to average assets stands out as amongst the best in the industry, and we expect further improvement over the next two years of close to 10 to 15 basis points on ROA because of the use of these technologies.

As far as co-lending is concerned, we are not significant players in this market. While we are talking to a few partners who would source for us and we would have the larger portion of the book on us, but these still are early times and we still are small in this space.

Most of our business, if you would see our investor presentation, has been built organically. 99% of our book has been built organically.

Okay. Since you said you've not hired as much because of artificial intelligence, how much of a difference has AI made to your hiring if you have certain more color to give on it?

What kind of roles is it where you're not hiring?

If you would look at our manpower numbers, the addition to manpower last year is just about slightly less than 5% to our total workforce. Where largely we are adding people is only on front-end sales and collections.

These are the two areas which we are adding. On all other places, we are able to see a more significant advantage of AI coming in.

It's making the processes faster and more error-free, I would say.

Sure. Thank you.

I'll come back.

Hi, sir. Good evening.

Sir, I wanted to ask, as you've acquired the gold loan business, last year itself, RBI revised its guidelines on gold loans, which came into effect this year. I wanted to ask any concerns you see on income-generating versus consumption-generating loans and the overlap on personal loans, given that you entered gold loan business?

Actually, these are two distinct markets. We do believe that both of these markets are pretty large markets, personal loan as well as gold loans, and they serve two different segments.

We do believe that the opportunity for us to grow exists in both of them. We've always been a compliant organization on all RBI regulations and we will continue to do so.

I think what RBI has done is created two distinct segments, and it has tried to approach them in the correct way in terms of what LTVs you can give and on what repayment structures you can have. We have planned our product keeping that in mind.

Our effort would be to look at growth in each of these segments. We believe that this actually makes the market more organized and helps us on better risk management.

Would you be cautious in giving out loans to that consumption-generating category because of concerns around over-leveraging?

If you tracked us and you would have seen us that we are a conservative organization. We try to understand each segment before we start doing it aggressively, and our strategy here will also remain the same.

In the two segments, we would look at what leverage the customer is at, but it will also depend on the collateral being offered to us. We will also watch out for the trends on gold price movements and keep all of that in mind while we grow our portfolio.

We should remember that this is a secured asset class with extremely low credit cost, and our focus would be to use more of technology in both distribution as well as in terms of how we manage operational risks in same.

Okay. Thank you, sir.

Hello? Yeah.

Just wanted to understand the break-up of your loan book in terms of retail, SME, and others. Once you get this gold loan company on board, how will the composition of the loans change actually within retail?

Yeah.

Thanks, Ram. See, we've stated before also that our retail plus SME will constitute between 85% to 88% of our book.

That is the range it will move in. There could be certain quarters in which it will be more towards the 87%, 88%, in some quarters it may go down to 86%.

It will remain within that range of 85% to 88%. With the addition of gold loan business, we expect within the retail and SME proportion, the retail proportion to start increasing, but on an overall retail plus SME range, it will remain between 85% to 88%.

Yeah. See,

already Tata Home Finance is a large company in terms of AUM, actually. When will the time be right for you to actually unlock value in the company in terms of monetizing it?

At the board we do discuss this, but you've not made any decision on this. We will wait for RBI directions when they do place us in the upper layer, and from that time they do give us about three years to make that decision of when to list, when not to list.

We will comply with those guidelines once we are placed in the upper layer. We have time.

We will watch this. There's no decision yet made on when to do it.

Thank you.

Hello. This is Manojit Saha from Business Standard.

Yes, Manojit.

Am I audible?

You spoke about portfolio diversification while presenting the notes, just wanted to understand what diversification we are seeking here. Secondly, any fundraising plans going ahead?

Also, with subnormal monsoon, are you seeing any concerns, especially around vehicle finance loans, tractor finance loans, and SME loans, specially in terms of recovery and collections, if any concerns you are seeing?

Your first question on diversification, our strategy remains that we want to be a well-diversified entity, present across all segments of the business, widely present across different geographies. We've stayed true to that strategy.

The addition of the gold loan portfolio is also a step in that direction. It will help us to add a new product which is secured in nature and which has huge potential to grow at high ROAs.

As far as diversification of our liability, again, our strategy there also remains the same that we want to be very well diversified entity. If you would have been seeing our numbers, we've also, post getting our international rating, which is a BBB-, which is equal to the sovereign rating, we have done two bond issuances, the one one which was done very recently.

Now our international borrowings constitute close to about 11% of our total borrowing. We will look at continuously tapping all opportunities, trying to optimize or reduce our cost of funds.

As far as the impact of the monsoon and El Niño is concerned, we've not seen any impact of the same on our portfolio. In fact, we are not seeing any early signs of the same also in that.

We are actually now hoping that the quantum of monsoons has improved in India and hopefully the weather predictors maybe hopefully they will be proved wrong, and hopefully we will get a good monsoon and rural markets will also flourish. We've not seen any impact as of now.

Hi. Since I have the opportunity to ask, what segments are you most cautious of, Mr.

Sabharwal, in the current times? The West Asia crisis impact, El Niño is just a test, but what is that segment you're most cautious of that you think stress might build up?

Based on what the macro situation is, in quarter one we did go a little conservative on certain segments. For example, the commercial vehicle segment and construction equipment segment, because we felt that if the fuel prices will get fully passed on to the final borrower, it could have an impact on the profitability of those businesses.

We did go conservative on those areas. Similarly, certain MSMEs which have a high reliance on petrol products, those are the areas in which we went a little conservative.

Luckily, the government had not passed on the impact of the prices on to the final consumers, those segments have continued to behave well.

Okay. Like you said, you were conservative of this vehicle in the first quarter, what next?

Are all the portfolios behaving the best?

Yeah. Actually, all portfolios on credit quality continue to behave very well.

There are no signs or early indicators of any stress visible in any of the segments.

Okay. Sure.

Thank you.

Thank you.

Am I audible?

Yes, Manish.

Sir, I just wanted to know the number, how much gold loan branches you are targeting in the next few years, because I missed that number. Because currently, sir, Yogloans have around 152 branches within the four southern states.

Which are the next states you will be targeting for this gold loan branches?

Basically, Manish, I'll give you an idea. Over the next 2.5 to 3 years, once we get RBI okay for the acquisition, we expect to have about 500-plus branches.

As far as specific states are concerned, we've identified certain states, work is on to identify more. That is something which we will roll out once we start on our organic business also.

Which are the states you have already identified, sir?

We don't want to talk about them at this point of time, but clearly we want to be present in certain states and go deeper in them before we keep adding more states. Our strategy would be to build a strong ecosystem in certain states and then, once we believe that we've got a critical mass there, then go to more states.

Are these in the northern part of the country?

They will be. They will also be in the northern part of the country.

Also, I am not saying only there.

Okay. Thank you, sir.

Thank you.

Good evening, sir. Am I audible?

Yes, Shipra.

Sir, okay. Sir, actually in the investor presentation, you've said that you've scaled up disbursements on the unsecured products, and from Q1 FY26 and you've been addressing the delinquency problem in your personal loan and MFI.

Now, there is another statement there which says that the book growth will catch up with the disbursement growth in the next few quarters. I just wanted to understand the strategy here and the demand and from where are you seeing higher disbursements coming in?

If you would remember, in about 2.5 years back, when the whole market saw some increased stress in the unsecured business, we've become more conservative and, because of that conservatism, we've scaled down our business volumes in unsecured business. From quarter one of FY26, we saw credit cost easing out and portfolio starting to behave much better.

That is when we started scaling up our unsecured business. What we have stated here in our investor presentation is that the disbursements are growing there, and what happens is in any lending book, you will first see disbursements growing and then you see the impact on the book.

Our book is growing today at a slower pace than disbursements, but we expect this catch-up to happen over the next few quarters, which means that if we continue on a similar trend on disbursements, you will start seeing the book growth coming in more closer to the disbursement growth.

Understood, sir. Thank you.

Thank you so much. I think quarter one was an excellent quarter for us.

We were aided by the fact that the Indian economy continued to remain strong on all aspects. We were also supported by the fact that the credit quality remains strong.

Our focus on investment in technology and being early adopters of AI is showing signs of helping us on the operating leverage. We expect operating leverage to further improve in the coming quarters.

We expect, because of our focus on high-margin products, that our margins in our business to also improve in the future. We had given certain guidance for FY28, and we are on track to meet that guidance going forward.

Thank you everyone for joining us.