Tata Steel reports net profit growth in the first quarter and approves expansion in Nilachala

Tata Capital, a Non-Banking Financial Company (NBFC), reported a significant increase in its consolidated net profit by 56% compared to the same period last year. For the quarter covering April-June 2027 (Q1 FY27), net profit reached INR 1,547 crore, driven by steady growth in the loan portfolio.

Company Financial Performance

The NBFC's Net Interest Income (NII) increased by 25% year-on-year to INR 3,571 crore. Meanwhile, total income grew by 23% year-on-year, reaching INR 4,455 crore.

Asset and Loan Portfolio Growth

By the end of June, the gross loan volume increased by 23% year-on-year to INR 2.86 trillion. Assets Under Management (AUM) showed a year-on-year growth of 22%, amounting to INR 2.90 trillion. Among these assets, retail and SME loans accounted for 85.4% of the net AUM.

Asset Quality and Regulatory Metrics

As of June 30, 2026, the proportion of Stage 3 gross assets was 1.9%, an improvement from 2% on March 31, 2026. Net Stage 3 assets decreased to 0.8% from 0.9% on March 31, 2026. The top-tier NBFC's Capital Adequacy Ratio (CRAR) stood at 18.5% as of June 30, 2026, which is lower than the 19% recorded on March 31, 2026, but higher than 16.5% on June 30, 2025.

Management Comments

Rajiv Sabharwal, Managing Director and CEO of the company, noted that the company did not register any impact from monsoons on its portfolio and expressed hope for a good rainy season that would support the development of rural markets. He also emphasized that Artificial Intelligence (AI) and digital capabilities are key elements supporting the company, and the benefits of technology investments are becoming increasingly evident in the processes of acquisition, underwriting, operations, payment collection, and servicing.

The total revenue of the Tata Group in the financial year 2026 (FY26) increased by 7.8%, reaching 16,24,030 crore rupees, while profit after tax grew by 51.9%, amounting to 1,70,525 crore rupees. These figures were presented by company head N. Chandrasekaran.

Shareholder Report

In his address to shareholders in the annual report of Tata Sons, the primary investment holding company of the Tata groups, Chandrasekaran noted that 2026 was marked by geopolitical conflicts and an unprecedented cycle of global investments in artificial intelligence. He emphasized that overall, FY2026 was a good year from a financial performance perspective for the Tata Group.

Tata Sons Results

Chandrasekaran reported that Tata Sons' revenue grew by 9.1% to 42,367 crore rupees in FY26, and profit after tax increased by 21.8% to 31,961 crore rupees. Furthermore, the board of directors of Tata Sons recommended paying a final dividend of 1,10,717 rupees per share, subject to shareholder approval.

Long-Term Strategies and Projects

The group head noted that Tata Group's revenue in FY26 is 2.1 times higher than in FY20, and profit is 5.4 times higher, reflecting sustained and significant transformation efforts across the organization. He also mentioned that all existing enterprises demonstrated strong results in both revenue and profit. However, the British luxury car manufacturer JLR faced a cyberattack in the second quarter of FY26, leading to a five-week production halt, although production returned to near normal levels by the fourth quarter.

In his letter, Chandrasekaran provided shareholders with information on new group projects such as Tata Electronics, Tata Digital, Air India, and Agratas, which are reportedly under the close attention of Tata Trusts Chairman Noel Tata. He compared the current ventures to how the founders of the Tata Group made 'bold, even ill-conceived at the time bets that turned out to be exactly what the nation needed.'

Innovation and Industry Future

Chandrasekaran stated that the next industrial revolution is being created right now, and its building blocks include silicon, connectivity, energy, and security. He noted that Tata Electronics is on track to become the first integrated player across the entire electronics product chain. In four years, the company has become the fourth highest revenue-generating Tata Group company with an income of 1,31,082 crore rupees, and nearly two-thirds of its workforce of 86,466 people are women. Operating profit has already reached the break-even point. In 2025, the company manufactured 12% of the total volume of phones released by the global leader.

Emphasizing that microchips are the new steel, he stated that the entire modern economy, including phones, cars, airplanes, hospitals, power grids, and AI systems, depends on them. He added that a country unable to produce its own semiconductors will always depend on others for the most fundamental element of the modern economy. He stressed that creating an ecosystem that includes suppliers, talent pipelines, and research links is a complex task.

Nestle India, a major player in the FMCG sector, reported significant growth in its figures for the June quarter of the current fiscal year. The company recorded a year-on-year growth in consolidated net profit of 48.26 percent, reaching ₹958.68 crore.

First Quarter Financial Results

According to regulatory filings, in the corresponding period last fiscal year, the company showed a consolidated net profit of ₹646.59 crore. In the first quarter of FY27, Nestle India's revenue from product sales increased by 25.4 percent, amounting to ₹6,363.27 crore, compared to ₹5,073.96 crore the previous year.

Management Comments and Sales Growth

Manish Tiwari, Chairman and CEO, noted that the strong quarter was driven by a 25.4 percent sales increase, which was attributed to higher sales volumes. He emphasized that sustained consumer trust in the company's brands and focus on execution allowed these results to be achieved. Despite ongoing geopolitical difficulties, exports demonstrated a growth of 35.6 percent.

Revenue and Expense Breakdown

Nestle India's total revenue in the first quarter of FY27 reached ₹6,400.65 crore, which is 25.5 percent higher than the figure in the same period last year (₹5,100.33 crore). Meanwhile, the company's total expenses in the quarter under review increased by 20.71 percent, totaling ₹5,070.03 crore.

Sales Dynamics by Segment

Nestle India's domestic sales grew by 25 percent, reaching ₹6,073.05 crore in the June quarter of FY27, compared to ₹4,860.01 crore in the previous fiscal year. The company's export revenue increased by 35.64 percent, amounting to ₹290.22 crore. Nestle India's earnings report indicated that all four product groups showed confident double-digit growth, supported by high double-digit growth across all channels.

Operational Improvements and Stock Performance

According to Tiwari, during the quarter, Nestle India continued to accelerate operational cost savings and increase investments in its brands, with advertising expenses rising by more than 40 percent. The EBITDA margin stood at 24.2 percent. At the same time, Nestle India shares were trading on BSE in the morning at ₹1,497.80, which was 3.08 percent higher than the previous day's close.