Tourism Finance Corporation of India Limited has received significant credit rating upgrades from Infomerics Valuation and Ratings Ltd., marking a positive development for the Delhi-based non-banking financial company. The rating agency announced the upgrades on March 24, 2026, covering facilities totaling ₹575.00 crore across multiple instruments.

Credit Rating Upgrades and Assignments

Infomerics upgraded the company's credit ratings across several key facilities, reflecting improved financial performance and asset quality. The rating actions demonstrate strengthened creditworthiness and operational efficiency.

Significant Asset Quality Improvement

The rating upgrade reflects substantial improvement in the company's asset quality metrics during 9MFY26. Gross Non-Performing Assets (GNPA) declined significantly to 0.38% from the peak level of 3.22% as of March 31, 2025. Net Non-Performing Assets (NNPA) improved dramatically to 0% from 1.61% in the previous period.

The company's collection efficiency remained robust at 97.09% for the twelve months ended February 28, 2026. The on-time portfolio performance strengthened to 98.99% as of December 31, 2025, compared to 94.80% as of March 31, 2025, indicating enhanced recovery mechanisms and better portfolio management.

Strong Financial Performance

Tourism Finance Corporation of India demonstrated robust financial performance across key metrics. Net Interest Income (NII) grew to ₹106.69 crore in FY25, supported by healthy interest spreads and efficient cost management. In 9MFY26, NII further strengthened to ₹103.60 crore, aided by higher disbursements and improved spreads.

Profitability showed significant improvement with PAT reaching ₹91.44 crore in 9MFY26, representing 24% year-on-year growth. The performance was supported by robust yields, efficient cost management with cost-to-income ratio remaining low at approximately 18%, and prudent credit practices.

Portfolio Growth and Diversification

The company's Assets Under Management (AUM) showed revival after previous declines, growing from ₹1,589 crore in FY24 to ₹1,694 crore in FY25. Strong momentum continued in 9MFY26 with AUM increasing to ₹2,036 crore, driven by disbursements of ₹938 crore and significantly lower delinquencies.

The loan portfolio maintains diversification across sectors as of December 31, 2025:

• Hotels: 54%
• Real Estate: 16%
• Manufacturing: 11%
• Infrastructure and Social Infrastructure: 6%
• Loans Against Securities: 5%
• NBFC Exposure: 4%
• ARC/Other Exposures: 4%

Robust Capitalization

Tourism Finance Corporation of India maintained strong capital buffers supported by internal accruals. The Capital Risk-weighted Assets Ratio (CRAR) stood at comfortable 58.13% as of 9MFY26, while tangible net worth increased steadily to ₹1,272.85 crore in 9MFY26 from ₹1,216.26 crore in FY25.

Gearing remained within comfortable limits at 0.75x in 9MFY26, with the company maintaining strong liquidity through cash and cash equivalents of ₹86.75 crore as of December 31, 2025. The rating agency noted the company's adequately matched Asset-Liability Management (ALM) profile with no negative cumulative mismatches across various buckets.

Rating Outlook and Future Prospects

Infomerics assigned a 'Stable' outlook reflecting expectations that Tourism Finance Corporation of India will sustain AUM growth over FY26-FY27, supported by its established secured wholesale lending model and diversified portfolio mix. The outlook factors in the company's demonstrated expertise in the hospitality sector alongside calibrated exposure to mid-income real estate and selective lending to manufacturing and NBFC segments.

The rating agency expects continued improvement in asset quality profile and resilient franchise in tourism financing to support steady earnings, healthy spreads, and overall credit stability over the medium term. However, ratings remain constrained by inherent NBFC business model risks, intense competition in lending space, and concentration risks with top 10 borrowers accounting for 44.50% of total portfolio.

Tourism Finance Corporation of India Limited has published newspaper advertisements regarding its financial results for the quarter and nine months ended December 31, 2025, in compliance with regulatory requirements. The company issued a formal communication to stock exchanges on January 31, 2026, confirming the publication of these advertisements in Business Standard newspaper.

Regulatory Compliance and Publication

The company's communication, signed by Company Secretary Sanjay Ahuja, was addressed to both BSE Limited and National Stock Exchange of India Limited. This publication follows the Board of Directors' meeting held on January 30, 2026, where the unaudited financial results were approved.

Financial Results Summary

The published advertisement contains the extract of unaudited financial results showing the company's strong performance for Q3 FY26. The comprehensive financial data demonstrates significant growth across key metrics.

Nine-Month Performance Highlights

The nine-month results further reinforce the company's robust financial trajectory with consistent growth momentum maintained throughout the period.

Corporate Actions and Compliance

The financial results reflect the impact of the stock split implemented during the period, where equity shares with face value of ₹10 were split into five equity shares of ₹2 each, effective from September 19, 2025. The earnings per share figures for comparative periods have been restated accordingly to maintain consistency.

Capital Structure and Financial Position

The company maintains a strong financial position with equity share capital of ₹9,259.54 lakh and reserves of ₹1,19,061.57 lakh. The debt-equity ratio stands at 0.75:1, indicating a well-balanced capital structure.

The publication of these results in newspaper format ensures wider accessibility for stakeholders and demonstrates the company's commitment to transparency and regulatory compliance under SEBI (LODR) Regulations, 2015.