Tourism Finance Corporation of India Q1 FY26 Profit Rises by 20 Per Cent, Driven by High Interest Income

Tourism Finance Corporation of India Ltd (TFCI) has reported a significant 20 per cent rise in net profit for the quarter ended June 30, 2025, posting Rs 3,055.89 lakh, up from Rs 2,539.78 lakh in the same period last year. The performance reflects a steady uptick in interest income, reduced costs and a sharper focus on asset quality and risk management.

According to unaudited financial results approved by the Board of Directors on August 4, 2025, total income for Q1 FY26 stood at Rs 6,581.95 lakh, compared to Rs 6,184.11 lakh in Q1 FY25. Of this, interest income alone contributed Rs 5,584.69 lakh, reflecting TFCI’s stable lending portfolio. Fee and commission income came in at Rs 271.20 lakh, while gains from fair value changes were Rs 515.32 lakh.

Operating expenses were largely under control, with total expenses recorded at Rs 2,766.06 lakh — lower than Rs 2,944.33 lakh in the corresponding quarter of the previous year. This helped profit before tax (PBT) to touch Rs 3,815.89 lakh, up from Rs 3,189.78 lakh, a rise of nearly 20 per cent.

The company’s net profit margin increased to 46.43 per cent, up from 41.07 per cent in Q1 FY25, reflecting improved operational efficiency and a higher yield on assets.

TFCI’s asset quality remained strong, with gross NPAs at just 0.24 per cent, significantly lower than 2.81 per cent in the same quarter last year. The net NPA position was nil, underscoring effective recovery mechanisms and prudent lending practices. The provision coverage ratio (PCR) rose to 100 per cent, from 45.11 per cent in Q1 FY25.

The company’s capital adequacy ratio (CRAR) also improved to 62.68 per cent, compared to 58.29 per cent, offering a strong buffer against future credit risks and indicating financial strength.

The debt-to-equity ratio stood at 0.71:1 as on June 30, 2025, better than 0.90:1 last year, signalling improved leverage and a healthier balance sheet. The total debt to total assets ratio reduced to 41.15 per cent from 45.97 per cent.

TFCI's total equity share capital remained stable at Rs 9,259.54 lakh, with earnings per share (EPS) for the quarter at Rs 3.30, up from Rs 2.74 in Q1 FY25.