Tata Capital has told shareholders that artificial intelligence is now embedded across onboarding, underwriting, servicing and collections, even as its employee benefit expenses rose to around ₹788 crore in the September 2026 quarter.
The Tata Group’s flagship non-banking financial company reported a 51% year-on-year jump in consolidated net profit to ₹1,660 crore for Q2 FY27, on the back of a loan book that crossed ₹3 lakh crore for the first time. Revenue from operations grew 21% year-on-year to ₹9,342 crore, and the cost-to-income ratio improved to 35.3% from 39.7% a year earlier.
Rajiv Sabharwal, Managing Director and CEO of Tata Capital, used the quarterly results to position AI as central to the company’s operating model. “Artificial intelligence remains a core strategic priority for the organisation. During the quarter, we continued to scale AI-led capabilities across onboarding, operations, underwriting, servicing and collections. More than 70% of retail applications are now processed through AI, while AI-assisted underwriting has been adopted across 95%+ of Personal Loan and Business Loan cases, improving processing turnaround time by over 39% and enhancing underwriting productivity,” Sabharwal said in the company’s post-earnings commentary.
The scale of AI deployment is reflected in the company’s investor presentation. AI-powered document processing handled around 7.8 crore documents and AI agents facilitated 30 lakh customer connects as of September 2026, the company disclosed. More than 12,000 employees have been trained in AI capabilities, with the training covering 100% of mid and senior management.
Employee cost continues to grow in absolute terms even as the company leans on automation for scale. Per the Q2 FY27 regulatory filing, employee benefit expenses touched around ₹788 crore, up from ₹599.88 crore reported in Q1 FY27 and ₹721.98 crore for the year-ago September quarter. The gap between AUM growth and headcount growth was significant: AUM rose 26% year-on-year while on-roll employee count grew only 6% to 31,655, spread across 1,515 branches in 26 states and Union Territories.
