Tour. Fin. Corp. Q2 FY27 Results (NSE: TFCILTD)
Signal: Earnings grew
The read
The operating trajectory remains positive: Q2 total income grew 22.4% YoY to 8138.79 lakh and pre-provision operating profit grew 32.2% to 4834.11 lakh, with the pre-provision margin expanding 440bps to 59.4%; however, PAT fell 36.9% QoQ to 3859.11 lakh as the 3400.03 lakh tax-refund interest recognized in Q1 did not repeat.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹81.39 Cr | +22.4% | -29.3% |
| EBIT | ₹48.34 Cr | +32.2% | |
| Net profit | ₹38.59 Cr | +32.8% | |
| EBIT margin | 0% |
P&L walk
Standalone Q2FY27 total income rose 22.4% YoY to 8138.79 lakh and pre-provision operating profit increased 32.2% to 4834.11 lakh, but PAT growth to 3859.11 lakh was partly offset by a 120.00 lakh bad-debt/investment provision and sequential normalization after Q1's one-off tax-refund interest.
Key positives
- Pre-provision operating profit increased 32.2% YoY to 4834.11 lakh, 9.8 percentage points faster than total-income growth of 22.4%.
- Pre-provision operating margin expanded 440bps YoY to 59.4%, while employee benefit expense rose only 7.1% and finance cost rose 10.8%.
- Gross NPA improved to 0.37% from 0.41% in the disclosed comparison, with provision coverage at 400.00% and CRAR at 54.68%.
- H1 operating cash flow turned positive at 2527.17 lakh versus negative 3642.01 lakh in H1FY26.
Key concerns
- PAT declined 36.9% QoQ to 3859.11 lakh because Q1 included 3400.03 lakh of interest on an income-tax refund; the sequential profit level is therefore not a clean operating run-rate.
- Interest income declined 10.9% QoQ to 6422.77 lakh, while total income declined 29.3% QoQ to 8138.79 lakh after the one-off income reversal.
- The company recorded a 120.00 lakh bad-debt/investment provision in H1FY27, whereas none was recorded in H1FY26.
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