1. At a Glance – Blink and You’ll Miss the Irony
Tourism Finance Corporation of India Ltd (TFCI) is that old-school NBFC which was created to fund hotels, resorts and tourism dreams… and somehow ended up funding manufacturing, NBFCs, real estate, and whatever else walked in with collateral and confidence.
Market cap sits at ~₹3,031 Cr with the stock chilling at ₹65.5, down 5% over 3 months but up a wild 131% in one year – because why not? ROE is a very “government-office fan at speed 2” 8.5%, while CRAR is a jaw-dropping 59%, basically screaming “capital toh bahut hai, ideas thode kam.”
Q3 FY26 numbers? Net profit of ₹31.8 Cr, up 40.6% YoY, revenue up 21.7% YoY, and EPS of ₹0.69 for the quarter. Sounds good? Yes. Is it clean? Eh… wait for the NPAs section.
This is a lender priced at 24.9× earnings, higher than several PSU giants, despite slower loan growth and declining NIMs. So the obvious question: is the market seeing a rebirth, or just binge-watching a turnaround fantasy?
2. Introduction – From Tourism Bank to Everything Bank
TFCI was born with a clear mission: finance tourism. Hotels, resorts, ropeways, amusement parks – the whole Incredible India starter pack. Fast forward to FY24–FY26, and tourism is still there… but now sharing the plate with manufacturing, NBFC lending, real estate, and social infrastructure.
Loan book has shrunk from ~₹1,980 Cr in FY22 to ~₹1,580 Cr in FY24, yet profits are rising. How? Higher yields, lower operating costs, chunky other income, and capital efficiency gymnastics.
But don’t get too romantic. This is still a lender where top 20 borrowers account for 70% of the loan book
. Concentration risk says hello. Asset quality has been on a literal rollercoaster, and promoter holding has evaporated to 3.85% – which is basically “trust us bro” governance mode.
So yes, numbers look better. But is this structural revival or just financial jugaad with good timing?
3. Business Model – WTF Do They Even Do?
In simple terms:
TFCI borrows money, lends it long-term, and hopes borrowers behave.
They provide:
- Long-term loans to hotels, resorts, amusement parks
- Debt, equity, and preference investments
- Wholesale lending to non-tourism sectors (because tourism alone wasn’t paying bills)
As of FY24, sanctioned outstanding projects of ~₹1,590 Cr are split as:
- Hotels: 61%
- Manufacturing: 21%
- NBFC: 8%
- Real estate: 7%
- Social infrastructure: 3%
Translation: tourism is still the hero in the movie poster, but manufacturing and NBFC lending are doing the heavy lifting behind the scenes.
Also, 73% of the loan book is MSME loans, which boosts yields but also keeps the risk manager permanently stressed.
4. Financials Overview – Q3 FY26 Scorecard
Quarterly Comparison Table (₹ Crore)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 70 | 57 | 66 | 21.7% | 6.1% |
| Financing Profit | 40 | 28 | 37 | 42.9% | 8.1% |
| PAT | 32 | 23 | 29 | 40.6% | 10.3% |
| EPS (₹) | 0.69 | 0.49 | 0.63 | 40.8% | 9.5% |
