Tour. Fin. Corp. Q1 FY27 Results (NSE: TFCILTD)
Signal: Earnings grew
The read
Q1FY27 headline PAT doubled, but earnings quality is low: 56% of PBT stems from a one-off tax refund interest (₹34 Cr), and a massive ₹41.2 Cr provision for bad debts was booked. Excluding these, underlying profitability is masked.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.15 Cr | 75.0% | 55.7% |
| EBIT | ₹79.52 Cr | 108.4% | |
| Net profit | ₹61.21 Cr | 100.3% | |
| EPS | ₹1.32 | 100.3% | |
| EBIT margin | 69.1% |
P&L walk
Pre-provision profit doubled but 56% of PBT is a one-off tax refund interest; large provision of ₹41.2 Cr offsets core earnings.
Key positives
- Total income grew 75% YoY to ₹115.15 Cr, led by 29% YoY growth in interest income.
- Pre-provision profit (PPOP) doubled to ₹79.52 Cr, reflecting strong core revenue expansion.
- EPS improved to ₹1.32 from ₹0.66 YoY, aided by the one-off but still showing earnings per share growth.
Key concerns
- 56% of PBT is from a non-recurring tax refund interest (₹34 Cr in other income) — core earnings quality is weak.
- Company booked a ₹41.2 Cr provision for bad debts (vs nil in Q1FY26), indicating potential asset quality stress.
- Net NPA reported at 4% (if correct) is elevated for an NBFC; debt-equity ratio at 0.75 suggests moderate leverage but rising credit costs.
Earnings quality: includes non-operating other income
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