Asset Quality Improvement
Expected: CurrentHIGH confidence
What: Net NPL: Nil
“Net NPLs (Rs.in Cr.) 9M FY25-26 (Reviewed) Nil.”
Tourism Finance Corporation of India Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +25.4%Weak8w StreakRe-Entry
In , Tourism Finance Corporation of India Ltd (Finance - PSU Lending) is outperforming Nifty 500 with +25.4% relative strength. Fundamentals: Weak. On a 8-week streak.
Tourism Finance Corporation of India Ltd Key Facts
- PE Ratio
- 45.2x
- Market Cap
- ₹3,865 Cr
- PAT Growth YoY
- -10%
- Revenue Growth YoY
- -18%
- RS vs Nifty 500
- +25.4%
PB: At PeakMomentum Only
What's Happening
📊PB near cycle highs — limited room for further expansion
👔Promoter stake down 4.0% this quarter
🌐FII stake increased 1.8% this quarter
💰Trading 73% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Asset Quality Improvement
CurrentHIGH
2. Operating Leverage Inflection
CurrentHIGH
3. Tam Expansion Changing Consumption
OngoingMEDIUM
Key Risks
1. Cost of borrowing has risen to 9
MEDIUMSector-Specific Signals
Net Interest Margin6.34%+169 bps
Gross NPA Ratio0.38%-523 bps
Net NPA Ratio0.00%-392 bps
Capital Adequacy Ratio58.13%-181 bps
Key Numbers
PAT Growth YoY
-10%
Inflection Down
Revenue YoY
-18%
Inflection Down
Price to Book
3.9
Current Price
₹84
Dividend Yield
0.72%
Fundamental Score
20/100
Weak
3Y PAT CAGR
+2%
Market Cap
3.9K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Tourism Finance Corporation of India Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: CurrentHIGH confidence
What: NIM: 6.34%
“NIM (%) 9MFY26 6.34% 9MFY25 4.65% FY25 5.07%.”
Tam Expansion Changing Consumption
Expected: OngoingMEDIUM confidence
What: Hospitality Sector Exposure: 54%
“Hospitality Financing to remain the thrust area with emphasis on financing commercially viable tourism projects.”
Gross NPL reduction to 0.38%
HIGH confidence
What: Gross NPL reduction to 0.38%
“Gross NPL (%) Dec-25 0.38% Dec-24 5.61%.”
What Are the Key Risks for Tourism Finance Corporation of India Ltd?
Earnings deceleration risks from management commentary
Cost of borrowing has risen to 9
MEDIUMTrigger: Refinancing existing debt in a high-interest-rate environment.
Management view: Partially offset by increasing yields on advances to maintain NIMs.
Monitor: commodity
What Is Tourism Finance Corporation of India Ltd's Management Saying?
Key quotes from recent conference calls
“Gross Loans (Rs. in cr) Sep-25 1,853.14 Sep-24 1,546.56 20% growth. [Previous Loan Book Growth guidance]”
“TFCI is evaluating opportunity for inorganic growth by acquisition of companies having business interest in financial services. [Initiative: Inorganic Growth Acquisition]”
“TFCI has in-principle approved to act as co-sponsor and investor of Alternative Investment Fund (Category II) in the ‘Hospitality’ & ‘Real-Estates’ sector. [Initiative: Alternative Investment Fund (AIF) Sponsorship]”
“Cost of Borrowing (%) 9MFY26 9.75% 9MFY25 9.73% FY25 9.64%. [Risk (commodity): MEDIUM]”
What Did Tourism Finance Corporation of India Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹103.60 Cr
YoY +38.9%QoQ +51.5%
Why: Growth was driven by a 21% increase in the gross loan book and improved yields on advances.
NII growth significantly outpaced loan book growth due to margin expansion.
EBITDA
₹115.06 Cr
YoY +18.9%Margin 56.7%
Why: Operating profit improved due to higher interest income and controlled employee expenses despite business expansion.
PPOP margins remain high as the company leverages its existing infrastructure for a larger loan book.
PAT
₹91.44 Cr
YoY +24.2%QoQ +53.3%
Why: Profitability was bolstered by a sharp reduction in Gross NPLs and zero Net NPLs, leading to lower provisioning requirements.
PAT growth reflects both operational scaling and significant asset quality recovery.
Other Highlights
• Gross AUM reached ₹2,101.76 Cr, a 25% YoY increase.
• Net NPLs reduced to Nil from 3.92% in the previous year.
• NIM improved to 6.34% for 9M FY26 from 4.58% in FY24.
What Sector Metrics Matter for Tourism Finance Corporation of India Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin
6.34%
YoY +169 bpsQoQ +14 bps
Why: Improved yields on the loan book and recovery of interest from NPLs.
Gross NPA Ratio
0.38%
YoY -523 bpsQoQ +16 bps
Why: Significant recovery in the hospitality loan portfolio.
Net NPA Ratio
0.00%
YoY -392 bpsQoQ 0 bps
Why: Full provisioning and successful recoveries led to zero net bad loans.
Capital Adequacy Ratio
58.13%
YoY -181 bpsQoQ +153 bps
Why: Capital consumption due to 21% loan book growth.
Cost of Borrowing
9.75%
YoY +2 bpsQoQ +10 bps
Why: General increase in market interest rates.
Gross AUM
₹2,101.76 Cr
YoY +25.3%QoQ +10.3%
Why: Strong disbursements in both hospitality and non-hospitality sectors.
Debt:Equity Ratio
0.75:1
YoY Not GivenQoQ -0.07x
Why: Increase in net worth through retained earnings.
Book Value per Share
₹27.49
YoY +8.2%QoQ +2.5%
Why: Accretion of profits to reserves.
What Is Tourism Finance Corporation of India Ltd's Management Guidance?
Forward-looking targets from management
Management Tone: BULLISH
How Fast Is Tourism Finance Corporation of India Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -18% | -2% | Inflection Down |
| PAT (Net Profit) | -10% | +2% | Inflection Down |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Finance - PSU Lending Stocks Beating Nifty 500
Frequently Asked Questions: Tourism Finance Corporation of India Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Tourism Finance Corporation of India Ltd's latest quarterly results?
Tourism Finance Corporation of India Ltd's latest quarterly results (Dec 2022) show
- PAT Growth YoY: -10.0% (inflecting downward)
- Revenue Growth YoY: -17.7%
- Net Interest Margin: 49.00%
Is Tourism Finance Corporation of India Ltd's profit growing or declining?
Tourism Finance Corporation of India Ltd's profit is declining with an inflecting downward trend.
- PAT Growth YoY: -10.0% (latest quarter)
- PAT Growth QoQ: -10.0% (sequential)
- 3-Year PAT CAGR: +2.4%
- Trend: Inflecting downward — consistent growth pattern
What is Tourism Finance Corporation of India Ltd's revenue growth trend?
Tourism Finance Corporation of India Ltd's revenue growth trend is inflecting downward.
- Revenue Growth YoY: -17.7%
- Revenue Growth QoQ: -12.1% (sequential)
- 3-Year Revenue CAGR: -2.3%
What is Tourism Finance Corporation of India Ltd's asset quality trend?
Tourism Finance Corporation of India Ltd's asset quality trend is insufficient_data.
What is Tourism Finance Corporation of India Ltd's 3-year profit and revenue CAGR?
Tourism Finance Corporation of India Ltd's long-term compounding rates
- 3-Year Profit CAGR: +2.4%
- 3-Year Revenue CAGR: -2.3%
Is Tourism Finance Corporation of India Ltd's growth accelerating or decelerating?
Tourism Finance Corporation of India Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.
- YoY Acceleration: -0.9% bps
- Sequential Acceleration: +10.0% bps
What is Tourism Finance Corporation of India Ltd's trailing twelve month (TTM) performance?
Tourism Finance Corporation of India Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹85 Cr
- TTM PAT Growth: +4.9% YoY
- TTM Revenue: ₹233 Cr
- TTM Revenue Growth: -8.3% YoY
Is Tourism Finance Corporation of India Ltd overvalued or undervalued?
Tourism Finance Corporation of India Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 45.2x
- Price-to-Book: 3.9x
What is Tourism Finance Corporation of India Ltd's current PE ratio?
Tourism Finance Corporation of India Ltd's current PE ratio is 45.2x.
- Current PE: 45.2x
- Market Cap: 3.9K Cr
- Dividend Yield: 0.72%
How does Tourism Finance Corporation of India Ltd's valuation compare to its history?
Tourism Finance Corporation of India Ltd's current PE is 45.2x.
- Current PE: 45.2x
- Valuation Assessment: Significantly Overvalued
What is Tourism Finance Corporation of India Ltd's price-to-book ratio?
Tourism Finance Corporation of India Ltd's price-to-book ratio is 3.9x.
- Price-to-Book (P/B): 3.9x
- Book Value per Share: ₹22
- Current Price: ₹84
Is Tourism Finance Corporation of India Ltd a fundamentally strong company?
Tourism Finance Corporation of India Ltd is rated Weak with a fundamental score of 20/100. This score is calculated from objective financial metrics
- PAT Growth YoY: -10.0% (20% weight)
- PAT Growth QoQ: -10.0% (15% weight)
- Earnings trend: inflection_down (5% weight)
Is Tourism Finance Corporation of India Ltd debt free?
Tourism Finance Corporation of India Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹920 Cr
What is Tourism Finance Corporation of India Ltd's return on equity (ROE) and ROCE?
Tourism Finance Corporation of India Ltd's return ratios over recent years
- FY2020: ROE 11.0%
- FY2021: ROE 10.0%
- FY2022: ROE 10.0%
Is Tourism Finance Corporation of India Ltd's cash flow positive?
Tourism Finance Corporation of India Ltd's operating cash flow is positive (FY2022).
- Cash from Operations (CFO): ₹139 Cr
- Free Cash Flow (FCF): ₹137 Cr
- CFO/PAT Ratio: 164% (strong cash conversion)
What is Tourism Finance Corporation of India Ltd's dividend yield?
Tourism Finance Corporation of India Ltd's current dividend yield is 0.72%.
- Dividend Yield: 0.72%
- Current Price: ₹84
Who holds Tourism Finance Corporation of India Ltd shares — promoters, FII, DII?
Tourism Finance Corporation of India Ltd's shareholding pattern (Mar 2026)
- Promoters: 3.9%
- FII (Foreign): 2.8%
- DII (Domestic): 0.1%
- Public: 93.3%
Is promoter holding increasing or decreasing in Tourism Finance Corporation of India Ltd?
Tourism Finance Corporation of India Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 3.9% (Mar 2026)
- Previous Quarter: 3.9% (Dec 2025)
- Change: 0.00% (stable)
How long has Tourism Finance Corporation of India Ltd been outperforming Nifty 500?
Tourism Finance Corporation of India Ltd has been outperforming Nifty 500 for 8 consecutive weeks, indicating consistent outperformance.
Is Tourism Finance Corporation of India Ltd a new momentum entry or an established outperformer?
Tourism Finance Corporation of India Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Tourism Finance Corporation of India Ltd?
Tourism Finance Corporation of India Ltd has 4 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — Aggressive recovery efforts in the hospitality sector have cleared the stressed book.
- Operating Leverage Inflection — Yields on advances are rising faster than the cost of borrowings as the book scales.
- Tam Expansion Changing Consumption — The company is capitalizing on the post-pandemic tourism boom in India.
- Gross NPL reduction to 0.38% — Successful recovery and resolution of stressed hospitality assets.
What are the key risks in Tourism Finance Corporation of India Ltd?
Tourism Finance Corporation of India Ltd has 1 key risk worth monitoring
- [MEDIUM] Cost of borrowing has risen to 9 — Refinancing existing debt in a high-interest-rate environment.
What did Tourism Finance Corporation of India Ltd's management say in the latest earnings call?
In Q3 FY26, Tourism Finance Corporation of India Ltd's management highlighted
- "Gross Loans (Rs. in cr) Sep-25 1,853.14 Sep-24 1,546.56 20% growth. [Previous Loan Book Growth guidance]"
- "TFCI is evaluating opportunity for inorganic growth by acquisition of companies having business interest in financial services. [Initiative: Inorgani..."
- "TFCI has in-principle approved to act as co-sponsor and investor of Alternative Investment Fund (Category II) in the ‘Hospitality’ & ‘Real-Estates’ se..."
What is Tourism Finance Corporation of India Ltd's management guidance for growth?
Tourism Finance Corporation of India Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: Not Given for Not Given
- Management tone: bullish
What sector-specific metrics matter most for Tourism Finance Corporation of India Ltd?
Tourism Finance Corporation of India Ltd's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin: 6.34% (YoY +169 bps) (QoQ +14 bps) — Improved yields on the loan book and recovery of interest from NPLs.
- Gross NPA Ratio: 0.38% (YoY -523 bps) (QoQ +16 bps) — Significant recovery in the hospitality loan portfolio.
- Net NPA Ratio: 0.00% (YoY -392 bps) (QoQ 0 bps) — Full provisioning and successful recoveries led to zero net bad loans.
- Capital Adequacy Ratio: 58.13% (YoY -181 bps) (QoQ +153 bps) — Capital consumption due to 21% loan book growth.
- Cost of Borrowing: 9.75% (YoY +2 bps) (QoQ +10 bps) — General increase in market interest rates.
- Gross AUM: ₹2,101.76 Cr (YoY +25.3%) (QoQ +10.3%) — Strong disbursements in both hospitality and non-hospitality sectors.
Is Tourism Finance Corporation of India Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Tourism Finance Corporation of India Ltd may be worth studying
- Cash flow is positive — CFO ₹139 Cr
What is the investment thesis for Tourism Finance Corporation of India Ltd?
Tourism Finance Corporation of India Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Cost of borrowing has risen to 9
What is the future outlook for Tourism Finance Corporation of India Ltd?
Tourism Finance Corporation of India Ltd's forward outlook based on current data signals
- Earnings Trend: inflecting downward
- Revenue Trend: inflecting downward
- Valuation: Significantly Overvalued
- Key Catalyst: Asset Quality Improvement
- Key Risk: Cost of borrowing has risen to 9
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.