NSE: TMB · BSE: 543596
TAMILNAD MERCA BANK LTD
Operates as a private sector bank with Q1 FY27 total business of ₹1,21,715 cr, made up of ₹64,409 cr in deposits and ₹57,306 cr in advances. The retail banking segment is the core earner, making up 69.3% of segment revenue at ₹3,189.28 cr (9-month YTD ending December 2024), driven largely by a gold loan portfolio that represents 47.82% of advances and yields 10.58%. The bank is also growing retail/MSME/agri (RAM) advances at 28.47% YoY, with vehicle loans targeted at 35% growth and home loans at 8-10% in FY27. Treasury operations contribute 21.0% of segment revenue (₹964.85 cr) through investment book gains and yields, while corporate/wholesale banking accounts for 9.7% (₹445.56 cr). Q1 FY27 net profit reached ₹411.51 cr, ROA 2.14%, ROE 15.93%, and NIM 4.29%, with cost-to-income at 39.10%. The main cost drivers are interest paid on deposits (reflected in the bank's deliberate shift to term deposits at 20.73% growth) and planned IT spend of ₹280 cr for FY27, split across infrastructure, software, and cybersecurity. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Retail Banking (69%), Treasury (21%), Corporate / Wholesale Banking (10%), Other Banking Operations (0%). Private sector bank with a gold-loan-anchored retail book, growing RAM (retail/agri/MSME) franchise, and a high capital cushion
Exhibit 1: Financial summary, FY23–FY26 (all audited; no estimate years)
| ₹ crore · standalone | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue | — | — | — | — |
| EBITDA (ex other income) | — | — | — | — |
| margin % | — | — | — | — |
| Owners' profit | 1,029 | 1,072 | 1,183 | 1,338 |
| EPS, as reported (₹) | 68.06 | 67.70 | 74.68 | 84.47 |
| ROE % · ROCE % | — · — | — · — | — · — | — · — |
| Debt / equity (x) | — | — | — | — |
| Cash from operations | (1,270) | (611) | 1,899 | (101) |
| Capex | — | — | — | — |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | — | — | — | — | — | — | — | — |
| Profit before tax | 400 | 404 | 387 | 404 | 432 | 467 | 504 | 557 |
| Net profit | 303 | 300 | 292 | 305 | 318 | 342 | 374 | 412 |
| EPS (₹) | 19.15 | 18.96 | 18.44 | 19.25 | 20.05 | 21.57 | 23.60 | 25.99 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| HDFC BANK LTD | 10,47,596 | 13.2 | — | — | — | — | — | — |
| ICICI BANK LTD. | 9,95,059 | 17.7 | — | — | — | — | — | — |
| KOTAK MAHINDRA BANK LTD | 4,40,141 | 11.5 | — | — | — | — | — | — |
| AXIS BANK LIMITED | 3,75,069 | 13.5 | — | — | — | — | — | — |
| FEDERAL BANK LTD | 84,309 | 18.0 | — | — | — | — | — | — |
| IDBI BANK LIMITED | 83,869 | 9.0 | — | — | — | — | — | — |
| INDUSIND BANK LIMITED | 64,925 | 49.1 | — | — | — | — | — | — |
| IDFC FIRST BANK LIMITED | 61,475 | 27.4 | — | — | — | — | — | — |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 9.0 | 12.3 | 5 of 20 | 79% |
| Profit growth | 35.0 | 29.5 | 8 of 20 | 63% |
| Market cap | 12953 | 41910 | 16 of 20 | 21% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 27 Oct 2026 · Tamilnad Mercantile Bank publishes September quarter unaudited results | compliance | minimal | — | — |
| 26 Oct 2026 · Q2 FY27 net profit rises 42% as lending accelerates | compliance | low | — | — |
| 26 Oct 2026 · Bank posts audio recording of Q2 investor meeting | investor communications | low | — | — |
| 26 Oct 2026 · Q2 FY27 profit rises 42% as asset quality improves | investor communications | medium | — | — |
| 26 Oct 2026 · September quarter profit rises 42% on higher income and lower bad loans | results | high | — | — |
| 17 Oct 2026 · TMB notifies special window for physical share transfer re-lodgement | compliance | minimal | — | — |
| 9 Oct 2026 · Tamilnad Mercantile Bank to open new branch in Kadambur on 12 Oct 2026 | business updates | low | — | — |
| 9 Oct 2026 · TMB schedules earnings call for Q2 FY27 results on Oct 26 | board shareholder meetings | low | — | — |
| 9 Oct 2026 · Board meeting on Oct 26 to consider Q2 FY26-27 results | results | low | — | — |
| 7 Oct 2026 · TMB raises Repo Linked Lending Rate by 25 bps to 8.50 percent, effective Oct 8 2026 | business updates | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.