Arthneeti

Tamilnad Mercantile Bank Q2 FY27 Share Price & Earnings Call Analysis

₹811.85+2.66% today
Market cap
₹12,856 Cr
P/E
8.91
ROE
13.99%
PEG
0.97
Price to sales
2.11
Debt to equity
6.24
52W high / low
₹942 / ₹483
Sales growth (5Y)
10.03%
EBITDA margin
73.14%
Net profit margin
22.98%
Sales (last year)
₹6,096 Cr

Incorporated in 1921, Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks in India. It offers an array of banking and financial services to retail customers, micro, small, and medium enterprises (MSMEs).[1]

Guidance scorecard · Q2 FY27 call

What T N Merc. Bank's management guided
and where it ranks in Banks

#5of 28 in
Banks
Revenue20–40%MarginsFlatCapexPlannedFundraisingWhat management saidOrder bookRising

RevenueQ1 FY27 call

20–40%
  • Tamilnad Mercantile Bank delivered strong 23% total business growth in Q1 FY27, highest in 14 years.
  • Advances growth is expected at 21-22% for the full year, up from earlier guidance of 20%.
  • Gold loan growth will continue via increasing customer base and loan tonnage, though price-driven growth may plateau.
  • MSME segment is a key growth driver, with over 20% growth expected, supported by structural HR and IT investments.
  • Retail segments like home loans, vehicle loans, and LAP expected to grow significantly, with vehicle loans growing ~25%.
  • IT spending planned at INR280 crores to support digital and cybersecurity enhancements, enabling growth.

2 more points from T N Merc. Bank's call on revenue

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Full Q1 FY27 analysis

MarginsQ1 FY27 call

Flat

See what T N Merc. Bank said on margins — free account, 30 seconds.

Full Q1 FY27 analysis

CapexQ1 FY27 call

Planned
  • Planned IT spending for the current financial year is around INR 280 crores.
  • Significant investments are being made in structural changes, HR, and technology to grow non-gold loan portfolios and MSME lending.
  • Continued focus on modernizing the bank through technology investments.
  • The bank is opening new branches: 60 planned for the year, with 6 already opened (3 in Tamil Nadu and 3 outside).

2 more points from T N Merc. Bank's call on capex

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Full Q1 FY27 analysis

FundraisingQ1 FY27 call

See what T N Merc. Bank said on fundraising — free account, 30 seconds.

Full Q1 FY27 analysis

Order bookQ1 FY27 call

Rising
  • The discussion mainly focuses on banking operations including advances, gold loans, MSME growth, IT spending, provisions, regulatory issues, and financial performance metrics.
  • If you require details about order books or pending orders, it is recommended to consult a different section of the full financial report or direct communications from the bank specifically addressing lending pipelines or new business acquisitions.
Full Q1 FY27 analysis
Full Banks ranking

Ranges are what management guided for revenue growth and margins on the latest earnings call. Not investment advice, and not a forecast of returns.

Potential multibaggers · Q2 FY27

Potential multibaggers in Banks
on management's own guidance

  1. AU Small FinanceGood growth
    2
  2. Canara BankGood growth
    1
  3. IDFC First BankGood growth
    3
See all potential multibaggersWhere does T N Merc. Bank rank?

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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.

Peers

Banks companies ranked on guidance

#CompanyRevenue guidedMargin guidedMarket capP/E
1Canara Bank20–40%Flat₹1.07L Cr5.3
2AU Small Finance20–40%Flat₹74,341 Cr26.0
3IDFC First Bank20–40%Flat₹67,332 Cr29.9
420–40%Flat₹58,716 Cr49.8
5T N Merc. BankThis stock20–40%Flat₹13,576 Cr9.4
620–40%Flat₹6,759 Cr8.6

Sign up free to see every company in the sector ranking and track T N Merc. Bank.

Pro shows every company guiding 40%+ revenue growth →Full Banks ranking

Financials of T N Merc. Bank

Quarterly Results, Profit & Loss, Balance Sheet, Cash Flows, and Ratios are shown below as separate sections.

Shareholder Pattern

T N Merc. Bank

Shareholding breakup across reporting periods.

Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026Sep 2026
FIIs +3.13%3.45%3.67%4.08%4.12%4.22%4.58%4.65%4.95%6.19%6.73%6.85%
DIIs +3.20%2.75%2.73%2.22%2.67%2.66%2.40%2.41%2.47%1.91%1.96%2.07%
Public +93.68%93.79%93.59%93.69%93.22%93.12%93.03%92.94%92.58%91.91%91.32%91.06%
No. of Shareholders1,05,0951,13,6431,16,1861,20,8971,23,2331,27,1541,25,2201,24,4401,19,2031,17,0651,17,1471,19,980

Financials of T N Merc. Bank

Quarterly Results

Quarter-by-quarter operating performance

Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026Sep 2026
Revenue +1,2091,2291,2541,2811,3371,3311,3421,3861,4131,4691,5501,6621,820
Interest6766926877157417617748078168238468971,013
Expenses +347327388417423355382407373375443446431
Financing Profit186210179150173216186173224271262319376
Financing Margin %15%17%14%12%13%16%14%12%16%18%17%19%21%
Other Income +156158164234227189200231208196242238232
Depreciation0000000000000
Profit before tax342368343383400404387404432467504557608
Tax %20%23%26%25%24%26%25%25%27%27%26%26%26%
Net Profit +274284253287303300292305318342374412451
EPS in Rs17.2717.9515.9818.1419.1518.9618.4319.2520.0521.5723.6025.9928.49
Gross NPA %1.70%1.69%1.44%1.44%1.37%1.32%1.25%1.22%1.01%0.91%0.73%0.69%0.61%
Net NPA %0.99%0.98%0.85%0.65%0.46%0.41%0.36%0.33%0.26%0.20%0.18%0.17%0.14%

Financials of T N Merc. Bank

Profit & Loss

Annual income statement trend

Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Revenue +3,2503,2243,4663,6093,8344,0814,8485,2915,8196,502
Interest2,0411,9942,1472,0722,0191,9872,6972,9903,2923,580
Expenses +1,3661,3501,2311,3551,4701,2761,3271,4901,5051,696
Financing Profit-157-120891833468188248111,0221,227
Financing Margin %-5%-4%3%5%9%20%17%15%18%19%
Other Income +506414526644812629645850877908
Depreciation4036302933547586930
Profit before tax3102595857981,1251,3941,3941,5751,8072,136
Tax %28%0%30%24%27%26%23%25%26%
Net Profit +2222594086038221,0291,0721,1831,3381,578
EPS in Rs15.5718.1428.6142.3457.6765.0067.7074.6884.4799.65
Dividend Payout %21%13%0%0%9%8%15%15%15%

Financials of T N Merc. Bank

Balance Sheet

Capital structure and asset base

Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026Sep 2026
Equity Capital143143143143143158158158158158
Reserves3,2623,4763,8374,4375,1936,7707,7638,8509,95210,611
Deposits32,42835,13636,82540,97044,93347,76649,51553,68961,71269,546
Borrowing5130324005251,3015007002,229
Other Liabilities +1,5221,7191,6041,9482,5592,6462,8153,2522,7773,407
Total Liabilities37,86840,47342,73347,49952,82857,86661,55266,45075,30085,951
Fixed Assets +140138128137211246271284311314
CWIP0000000000
Investments10,3649,1079,46711,70313,24214,15615,26315,10115,69318,800
Other Assets +27,36431,22833,13735,65839,37443,46446,01951,06559,29666,837
Total Assets37,86840,47342,73347,49952,82857,86661,55266,45075,30085,951

Financials of T N Merc. Bank

Cash Flows

Operating, investing and financing cash movement

Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Cash from Operating Activity +-3890567-6701,325-1,270-6111,899-101
Cash from Investing Activity +-260-20-37-107-89-100-99-118
Cash from Financing Activity +4720269-324-711,088697-96026
Net Cash Flow580816-1,0311,147-270-14840-193
Free Cash Flow-4140547-7071,218-1,358-7111,800-219

Financials of T N Merc. Bank

Ratios

Working capital efficiency and return ratios

Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %7%7%11%14%17%17%14%14%14%

Guidance history

How T N Merc. Bank's guidance has moved, call by call

CallRevenueMarginsCapexFundraisingOrder book
Q1 FY27 call →20–40%FlatPlanned—Rising
Q4 FY26 call →20–40%FlatPlanned——
Q4 FY26 call →20–40%FlatPlanned——
Q3 FY26 call →10–20%FlatPlanned——

What management guided on each call, newest first. Not investment advice, and not a forecast of returns.

73out of 100

Momentum score · price trend

73 out of 100 — Strengthening

Over the past year its share price has done better than most of the stocks we track.

PeriodShare price changeBetter than … of 1,910 stocks
Last 12 months+64.3%88%
Last 6 months+9.8%67%
Last 3 months−4.7%54%
How we calculate it

“Better than 30%” means that over that period the share price did better than 30 out of every 100 stocks we track (1,910 Indian companies worth ₹500 Cr or more, with at least a year of prices).

The score weighs the longer periods more: 40% × 12-month + 40% × 6-month + 20% × 3-month. For T N Merc. Bank: 0.4 × 88 + 0.4 × 67 + 0.2 × 54 = 73.

Strengthening is 70 and above, Steady 40 to 70, Cooling below 40. Scores are recalculated every night after the market closes.

Full methodology →

This describes only how the share price has moved up to 29 Oct 2026, compared with other stocks. It says nothing about the business, and it is not a prediction, a price target or a recommendation to buy or sell.

Continue your research

What T N Merc. Bank's management said in earlier quarters

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