TMB posts record ₹412 cr quarterly profit, lifts FY27 guidance
Q1 net profit jumps 35%, NPAs drop to 0.7%. Management now sees 20% business growth for the full year.
— 4 earlier stories on Tamilnad Mercantile Bank Ltd. →What's new
- Net profit of ₹412 crore, up 35% YoY – a record for the bank.
- Total business grew 23% to ₹121,715 crore.
- Management raised full-year guidance: business growth 20%, advances 21–22%, NIM >4%, ROA >2%.
Why this matters
The guidance upgrade signals that management sees the momentum continuing and expects a shift toward volume-led growth after a period of margin improvement. With gross NPAs at 0.7% and net NPAs at 0.3%, the bank has room to accelerate lending without compromising asset quality, making the new targets credible.
What we're watching
- Whether TMB can sustain 20%-plus business growth for the rest of FY27.
- NIM trajectory: the guidance of above 4% suggests stable funding costs.
- Gold loan portfolio strategy (mentioned but not detailed in the call).
The full read
Tamilnad Mercantile Bank just posted its best quarter ever: net profit of ₹412 crore, up 35% year on year. That is a record. Total business rose 23% to ₹121,715 crore. Asset quality kept improving. Gross NPAs fell to 0.7% and net NPAs to 0.3%. Yet the real news came from the guidance. Management now expects full-year business growth of 20% (up from 18%), advances of 21–22%, a net interest margin above 4%, and a return on assets above 2%. The numbers themselves were already out; the upgrade signals management's confidence that the momentum is real and sustainable. For a bank trading at 8.7 times trailing earnings, the bar has just been raised. The next test is delivery.
Questions answered
- What drove the 35% profit growth in Q1?
- The profit jump came from a combination of strong loan growth (23% in total business) and improving asset quality, which lowered provisions. The bank also benefited from stable margins.
- How does the new guidance compare to previous targets?
- Management previously targeted total business growth of 18% for FY27. The revised 20% target reflects confidence in sustaining the current momentum, especially in advances (21-22% vs earlier 19-20%).
- Is the raised guidance achievable given the current environment?
- With gross NPAs at just 0.7% and net NPAs at 0.3%, the bank has a strong balance sheet to support lending. The key risk is if economic growth slows, but the bank's conservative underwriting suggests it can absorb shocks.
- What was said about the gold loan portfolio?
- The concall summary mentions a gold loan portfolio strategy was discussed, but no specific details were provided in the filing. This is an area to watch for future updates.
- How does TMB's valuation look after this result?
- TMB trades at a trailing P/E of 8.7 with an ROE of 14%. The raised guidance could support re-rating if the bank delivers on the upgraded targets.
Tamilnad Mercantile Bank Ltd.
Latest quarter · Mar 2026
Returns & growth
Story so far
All notes on TMB →- 27 Jul 2026 · 6:21 PM IST TMB posts record ₹412 cr quarterly profit, lifts FY27 guidance
- today TMB Q1 profit up 35% to ₹411 cr, NPA drops to 0.69%
- today TMB net profit rises 35% to ₹411.51 crore, NPAs improve
- today TMB net profit jumps 35% to ₹411.5 crore, NPAs improve
- 26d ago TMB advances jump 27% YoY, total business crosses ₹1,21,715 cr