Tourism Finance Corporation of India (TFCI) Q1 FY26 – “Hotels ke NBFC, Shareholders ke Airbnb”
1. At a Glance
TFCI is basically that cousin who lends money to hotels so you can overpay for a buffet brunch at Taj. FY25 numbers? Revenue ₹254 Cr, PAT ₹109 Cr, NIM 4.6%, CRAR a steroidal 59%. Stock at ₹72.5 has doubled in a year (+113%). Sounds like a holiday package, until you read the fine print: promoter holding just 3.85%, NPLs creeping up, and cost of borrowings rising faster than your Goa bar bill.
2. Introduction
Once upon a time (read: 1989), the government thought India’s tourism needed more finance than slogans. Enter Tourism Finance Corporation of India (TFCI)—set up to fund hotels, resorts, multiplexes, ropeways, and basically anything that involves selfies.
Fast forward to FY25: it’s a listed NBFC with ₹1,580 Cr loan book, 73% of which goes to MSMEs. Associated with big names—Taj, Leela, ITC, Hyatt, Marriott—but also exposed to mid-level projects where defaults can hit harder than post-checkout room service bills.
The paradox? Revenues stagnant at ~₹250 Cr for a decade, but stock price up 113% in a year. Why? Because the market loves a tourism revival story—even if loan book is shrinking and NIMs are thinning.
Translation: They’re a lender with a tourist visa—mostly hotels, some manufacturing, a bit of everything else.
Question for you: If your top 20 borrowers = 70% of loan book, is this NBFC diversified, or just the bartender serving drinks to the same 20 rich uncles?
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
63.7
62.0
68.0
3.1%
-6.3%
EBITDA (₹ Cr)
36
32
36
12.5%
0%
PAT (₹ Cr)
30.6
25.5
29.6
20.3%
3.4%
EPS (₹)
0.66
0.55
0.65
20%
1.5%
Commentary: Stable, predictable NBFC-style results. Annualised EPS ~₹2.64 → P/E ~27. Expensive for a company with single-digit ROE.
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E
EPS (TTM): ₹2.35
Apply range 15x–20x (given peers like HUDCO ~17x, IRFC ~25x, but TFCI smaller).
Value = ₹35 – ₹47.
Method 2: P/B
Book Value: ₹26.3
Assign range 1.5x–2.5x (given tourism risk + small promoter stake).
