Tourism Finance Corp Reports 14% Surge in Q2 Net Profit, Explores New Investment Avenues

Tourism Finance Corporation of India Ltd (TFCI) has reported a robust 14% year-over-year increase in its net profit for the second quarter, signaling strong financial performance amidst evolving market conditions. The company's strategic moves and financial results paint a picture of growth and expansion in the tourism and hospitality financing sector.

Financial Highlights

TFCI announced a net profit of 291 million rupees for the quarter, up from 256 million rupees in the corresponding period last year. This significant growth underscores the company's resilience and effective financial management.

Here's a breakdown of TFCI's key financial metrics for Q2:

Metric	Q2 FY2026 (in million rupees)	Q2 FY2025 (in million rupees)	YoY Change
Net Profit	291.00	256.00	+14%
Total Income	6,648.53	6,462.89	+2.87%
Interest Income	5,751.40	5,071.01	+13.42%
Expenses	2,992.00	3,184.81	-6.05%

The company's total income saw a modest increase to 6,648.53 million rupees, up from 6,462.89 million rupees in the same quarter last year. Notably, interest income, a crucial revenue stream for TFCI, grew by 13.42% to 5,751.40 million rupees.

Operational Efficiency

TFCI demonstrated improved operational efficiency with a 6.05% reduction in total expenses, which stood at 2,992.00 million rupees compared to 3,184.81 million rupees in the previous year. This cost management has contributed significantly to the bottom-line growth.

Strategic Initiatives

In a notable development, TFCI's Board of Directors has given in-principle approval to co-sponsor Alternative Investment Fund(s) (Category II) for the 'Hospitality' and 'Real-Estate' sectors. These funds are proposed to be registered with the Securities and Exchange Board of India (SEBI). This strategic move signals TFCI's intent to diversify its investment portfolio and capitalize on opportunities in these key sectors.

Financial Stability

The company's balance sheet remains robust, with a tangible net worth of 124,171.83 million rupees as of September 30, 2025. TFCI maintains a Capital Risk Adequacy Ratio (CRAR) of 56.60%, well above regulatory requirements, indicating strong financial stability and risk management.

Asset Quality

TFCI has shown remarkable improvement in its asset quality. The Gross Non-Performing Assets (NPA) ratio stood at 0.22%, down from 2.82% in the same period last year. Moreover, the Net NPA has been reduced to nil, showcasing the company's effective credit risk management and recovery processes.

Market Position

With a debt-to-equity ratio of 0.82:1, TFCI maintains a balanced capital structure. The company's earnings per share (EPS) for the half-year ended September 30, 2025, stood at 1.29 rupees, reflecting its sustained profitability.

Tourism Finance Corporation of India Ltd continues to strengthen its position in the tourism and hospitality financing sector. The company's robust financial performance, coupled with strategic initiatives to explore new investment avenues, positions it well for future growth in the dynamic Indian financial landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+7.10%	+1.51%	-4.02%	+57.51%	+94.32%	+725.33%

Tourism Finance Corporation of India Limited (TFCI) has taken a significant step towards expanding its financial services portfolio. The company's Board of Directors has granted in-principle approval to enter into an exclusive term sheet with Cosmea Investment Holdco Private Limited (CIHL) for the acquisition of Cosmea Investment Private Limited (CIPL) and its subsidiaries.

Key Details of the Proposed Acquisition

Target: 100% shareholding of Cosmea Investment Private Limited (CIPL)
Scope: Includes specified wholly-owned subsidiaries, step-down subsidiaries, and trusts of CIPL
Acquirer: An affiliate or Special Purpose Vehicle (SPV) of TFCI

Business Verticals of the Target Company

The target company, CIPL, has interests in various financial services sectors:

Asset reconstruction
Stock broking
Wealth/portfolio management
Investment advisory

Conditions for the Acquisition

The proposed acquisition is subject to several conditions:

Satisfactory completion of detailed financial, legal, tax, and corporate due diligence
Verification of all assets and liabilities
Finalization of share purchase consideration and payment mode
Execution of definitive share purchase and related agreements
Receipt of requisite regulatory approvals
Compliance with statutory requirements, including fit and proper criteria

Board Meeting Details

Aspect	Details
Date of Board Meeting	October 6
Meeting Commencement	4:30 PM
Meeting Conclusion	5:50 PM

TFCI has stated that it will make further disclosures in accordance with applicable laws as material developments occur in this acquisition process.

This strategic move by Tourism Finance Corp indicates its intent to diversify and strengthen its position in the financial services sector. The acquisition, if completed, could potentially enhance TFCI's capabilities in areas such as asset reconstruction, stock broking, and wealth management, complementing its existing tourism finance operations.

Investors and stakeholders should note that this is an initial approval, and the final acquisition is contingent on various factors and approvals.