Brickwork Ratings Upgrades Tourism Finance Corporation Bonds to AA-/Stable, Citing Asset Quality Improvement and Strong Capitalization

Brickwork Ratings Upgrades Tourism Finance Corporation Bonds to AA-/Stable, Citing Asset Quality Improvement and Strong Capitalization​

Brickwork Ratings (BWR) has upgraded the rating of multiple bond issues belonging to Tourism Finance Corporation of India Ltd (TFCI), assigning them a BWR AA-/Stable rating. This action reflects improvements in the company's asset quality, robust capitalization levels, and growth across various sectors following rigorous performance review.

The rating applies to outstanding Non-Convertible Debentures (NCD) that aggregate Rs 175.00 Crores. The upgrade was announced following a comprehensive assessment of TFCI’s financial performance and operational stability. Instruments previously rated by BWR were reaffirmed or upgraded in line with the improved metrics observed by the rating agency.

Financial Strength and Operational Growth​

The decision to upgrade the bonds is supported by several key credit strengths, including healthy capitalization and significant improvements in asset quality. As of March 31, 2026, TFCI maintained a Capital Adequacy Ratio (CAR) of 55.53%, which is above the minimum regulatory requirement. The company's tangible net worth increased to Rs 1304.84 Crores, up from Rs 1207.28 Crores in FY25.

Financially, TFCI demonstrated a marked improvement in profitability and efficiency. Net Interest Margin (NIM) jumped to 6.43% in FY26, compared to 5.07% in FY25, driven by increased interest income and reduced finance costs. The company also achieved substantial growth in its loan book, which grew by 23.92%.

Regarding asset quality, TFCI showed significant recoveries from non-performing assets (NPAs). Gross Non-Performing Assets (GNPA) ratio dropped dramatically from 3.22% to 0.37%, while the Net NPA (NNPA) ratio fell to zero as of March 31, 2026.

Diversification and Risk Management​

While TFCI was primarily established for business growth within tourism and related sectors, it has successfully diversified its loan portfolio in recent years. As of March 31, 2026, the loan book exposure to tourism stood at 52%, while investments were made across other segments including Manufacturing (12%), Real Estate (19%), NBFC (4%), and social infrastructure.

The company continues to operate with prudent risk management. The strong capitalization levels, coupled with a gearing ratio of 0.83 times (down from 0.72 times in FY25), provide substantial buffers for near-term growth targets. Liquidity remains adequate, with the Loan Coverage Ratio (LCR) at 258% as of March 31, 2026.

Financial Performance Summary​

The financial health indicators highlight steady operational improvements across key metrics:


TFCI was established in 1989 and remains committed to financing tourism-related projects, while also providing finance to various resilient sectors including manufacturing, real estate, and NBFCs for secured onward lending.

TFCILTD Stock Price Movement​

Tourism Finance Corporation of India Limited posted a gain today, with shares rising 1.57% to settle at ₹79.15 in post-market activity. The stock saw strong trading action throughout the session, supported by a total volume of 2,741,938 shares and an intraday range between ₹77.76 and ₹79.99.