Power Finance Corporation Ltd
Power Finance Corporation Ltd
Financial Services F&OKey Fundamentals
LargecapFinancial InstitutionFinancial ServicesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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22 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
Key Insights
Strengths
4- Stock is trading at 0.84 times its book value
- Stock is providing a good dividend yield of 5.10%.
- Company has been maintaining a healthy dividend payout of 23.0%
- Company's working capital requirements have reduced from 19.2 days to 14.8 days
Weaknesses
3- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 10.0% over past five years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
Power Finance Corporation trades at a PE of 3.6x and 0.84x book value with a market cap of ₹1,20,157 Cr, reflecting deep value characteristics for a government-owned power sector lender. The company has delivered consistent 21% ROE over 3 and 5 years with 18% compounded profit growth over 3 years, though revenue growth has moderated to 5% TTM and the stock has declined 9% over the past year.
- Trades at 0.84x price-to-book, significantly below book value, indicating deep value territory for a profitable NBFC
- PE ratio of 3.6x is exceptionally low, suggesting earnings are being acquired cheaply relative to market norms
- Consistent ROE of 21% maintained across 3-year, 5-year, and last year periods, showing stable profitability
- Dividend yield of 5.11% provides meaningful income, well above market averages
- Compounded profit growth of 18% over 3 years and 17% over 5 years demonstrates sustained earnings expansion
- Working capital days reduced from 19.2 to 14.8 days, reflecting improved operational efficiency
- 10-year compounded sales growth of 15% and profit growth of 15% show long-term structural growth trajectory
- Market cap of ₹1,20,157 Cr with government backing provides institutional stability and low counterparty risk perception
- Low interest coverage ratio raises concerns about ability to service debt comfortably in a rising rate environment
- TTM sales growth has decelerated sharply to just 5%, down from 14% 3-year CAGR, signaling slowing momentum
- Potential capitalization of interest costs may overstate reported profitability and asset quality
- Stock has declined 9% over the past 1 year, underperforming broader markets significantly
- 5-year compounded sales growth of only 10% is modest for a power sector financier during India's infrastructure push
- Dividend payout ratio of 23% is relatively conservative given the high profitability, limiting shareholder returns
- As a concentrated power sector lender, PFC carries sectoral concentration risk tied to state discom health
- Debt-to-equity data unavailable but the business model inherently involves high leverage, amplifying balance sheet risk
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- CLSA cuts target, PAT estimate down Aug 10
CLSA cut target price to ₹500 and revised FY27 PAT estimate down 2%-3% after Q1 results showed core margins softening QoQ.
- Flat revenue, slow loan growth Aug 10
Q1 revenue flat at ₹138B YoY and loan growth only 4% YoY, partly due to RBPF portfolio run-down.
- Record PAT in FY26 Aug 8
PFC reported record standalone PAT of ₹20,051 crore and consolidated PAT of ₹33,625 crore in FY26, with merger with REC targeted for April 2027.
- Q1 net profit up YoY Aug 7
Q1 net profit rose to ₹47.45B from ₹45B YoY, reflecting continued profit growth despite flat top-line.
- Final dividend of ₹3.95/share Aug 8
Board recommends final dividend of ₹3.95 per share for FY25-26; 40th AGM scheduled for August 31, 2026.
- ₹30 crore block trade on NSE Aug 10
Institutional block trade of ~7.65 lakh shares at ₹393.10/share worth ₹30.07 crore executed on NSE.
- Two transmission SPVs transferred Aug 3
PFC transferred Ananthpuram and Krishnagiri REZ Transmission subsidiaries to Apraava Energy and PGCIL for nearly ₹40 crore.
- New transmission SPVs incorporated Jul 28
PFC Consulting incorporated Benchigere Transmission (400kV, Tumakuru) and Kushtagi Transmission (765KV, Karnataka) as SPVs for competitive bidding.
TL;DR: PFC delivered record profitability in FY26 and continued YoY profit growth in Q1, with benign asset quality and a transformative REC merger on track for April 2027. However, margin compression and tepid 4% loan growth are near-term concerns that prompted analyst estimate cuts. The transmission SPV pipeline signals steady infrastructure deal flow. Trend is stable with upside hinging on merger execution and loan growth re-acceleration.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 21,009 | 22,391 | 23,572 | 24,141 | 24,717 | 25,722 | 26,798 | 29,265 | 28,539 | 28,890 | 29,095 | 28,920 | 28,527 |
| Expenses | -65 | -551 | 791 | -589 | 310 | 366 | 429 | 2,148 | 212 | 1,514 | 1,031 | 416 | 35 |
| Financing Profit | 7,404 | 8,629 | 7,954 | 9,577 | 8,886 | 9,348 | 9,807 | 10,550 | 11,123 | 10,062 | 10,492 | 11,170 | 11,242 |
| Fin. Margin % | 35% | 39% | 34% | 40% | 36% | 36% | 37% | 36% | 39% | 35% | 36% | 39% | 39% |
| Other Income | 9 | 13 | 22 | 35 | 20 | 33 | 24 | 20 | 90 | 11 | 27 | -63 | 36 |
| Interest | 13,670 | 14,313 | 14,827 | 15,154 | 15,521 | 16,008 | 16,562 | 16,567 | 17,204 | 17,314 | 17,572 | 17,333 | 17,250 |
| Depreciation | 12 | 13 | 14 | 15 | 12 | 13 | 15 | 16 | 14 | 15 | 18 | 16 | 18 |
| PBT | 7,401 | 8,629 | 7,961 | 9,597 | 8,894 | 9,368 | 9,816 | 10,554 | 11,199 | 10,057 | 10,502 | 11,092 | 11,260 |
| Tax % | 19% | 23% | 21% | 21% | 19% | 23% | 21% | 21% | 20% | 22% | 22% | 22% | 20% |
| Net Profit | 5,982 | 6,628 | 6,294 | 7,556 | 7,182 | 7,215 | 7,760 | 8,358 | 8,981 | 7,834 | 8,212 | 8,598 | 8,998 |
| EPS in Rs | 13.87 | 14.65 | 14.33 | 17.04 | 16.8 | 16.07 | 17.66 | 19.14 | 20.81 | 17.4 | 19.07 | 21.21 | 21.25 |
| Gross NPA % | 3.54% | 3.4% | 3.13% | 3.02% | 2.97% | 2.62% | 2.3% | 1.64% | 1.47% | 1.45% | 1.26% | 0.66% | 0.66% |
| Net NPA % | 1% | 0.98% | 0.86% | 0.85% | 0.84% | 0.8% | 0.73% | 0.38% | 0.31% | 0.3% | 0.23% | 0.13% | 0.13% |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 24,988 | 27,861 | 27,581 | 48,624 | 54,106 | 62,189 | 71,656 | 76,262 | 77,568 | 91,508 | 1,06,502 | 1,15,450 | 1,15,431 |
| Expenses | 1,103 | 2,042 | 5,538 | 6,583 | 1,696 | 7,332 | 7,102 | 8,215 | 4,051 | -33 | 3,255 | 3,171 | 2,996 |
| Financing Profit | 8,429 | 9,162 | 5,275 | 11,752 | 17,783 | 14,012 | 19,871 | 23,338 | 26,501 | 33,573 | 38,603 | 42,864 | 42,966 |
| Fin. Margin % | 34% | 33% | 19% | 24% | 33% | 23% | 28% | 31% | 34% | 37% | 36% | 37% | 37% |
| Other Income | 25 | 25 | 30 | 42 | 94 | 105 | 46 | 79 | 47 | 69 | 85 | 49 | 12 |
| Interest | 15,456 | 16,657 | 16,768 | 30,289 | 34,627 | 40,845 | 44,684 | 44,709 | 47,017 | 57,968 | 64,644 | 69,415 | 69,470 |
| Depreciation | 8 | 20 | 41 | 15 | 15 | 24 | 25 | 35 | 52 | 53 | 56 | 63 | 67 |
| PBT | 8,446 | 9,167 | 5,264 | 11,779 | 17,862 | 14,093 | 19,891 | 23,382 | 26,496 | 33,588 | 38,632 | 42,850 | 42,911 |
| Tax % | 29% | 33% | 58% | 25% | 29% | 33% | 21% | 20% | 20% | 21% | 21% | 22% | — |
| Net Profit | 6,004 | 6,184 | 2,236 | 8,797 | 12,640 | 9,477 | 15,716 | 18,768 | 21,179 | 26,461 | 30,514 | 33,625 | 33,642 |
| EPS in Rs | 18.19 | 18.74 | 6.78 | 20.27 | 30.06 | 21.58 | 35.6 | 42.47 | 48.15 | 59.88 | 69.67 | 78.49 | 78.93 |
| Div. Payout % | 20% | 30% | 59% | 31% | 0% | 35% | 22% | 23% | 22% | 23% | 23% | 24% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 1,320 | 1,320 | 2,640 | 2,640 | 2,640 | 2,640 | 2,640 | 2,640 | 2,640 | 3,300 | 3,300 | 3,300 |
| Reserves | 31,091 | 34,708 | 34,205 | 37,194 | 44,481 | 46,760 | 58,127 | 69,036 | 81,518 | 97,847 | 1,14,438 | 1,29,561 |
| Borrowing | 1,87,795 | 2,00,660 | 2,02,993 | 4,41,151 | 5,39,488 | 5,96,561 | 6,59,682 | 6,60,476 | 7,51,158 | 8,61,961 | 9,71,758 | 10,12,503 |
| Other Liabilities | 8,705 | 10,531 | 19,700 | 41,546 | 42,260 | 48,560 | 55,257 | 58,848 | 60,796 | 75,770 | 88,590 | 99,214 |
| Total Liabilities | 2,28,912 | 2,47,220 | 2,59,537 | 5,22,531 | 6,28,869 | 6,94,521 | 7,75,707 | 7,91,000 | 8,96,112 | 10,38,877 | 11,78,086 | 12,44,579 |
| Fixed Assets | 102 | 198 | 296 | 161 | 196 | 238 | 341 | 719 | 782 | 764 | 761 | 755 |
| CWIP | 2 | 47 | 105 | 129 | 199 | 288 | 336 | 53 | 22 | 39 | 88 | 144 |
| Investments | 528 | 2,230 | 3,145 | 5,493 | 4,604 | 4,404 | 3,499 | 3,774 | 5,973 | 10,971 | 12,792 | 15,549 |
| Other Assets | 2,28,280 | 2,44,745 | 2,55,990 | 5,16,749 | 6,23,871 | 6,89,590 | 7,71,530 | 7,86,454 | 8,89,334 | 10,27,102 | 11,64,445 | 12,28,131 |
| Total Assets | 2,28,912 | 2,47,220 | 2,59,537 | 5,22,531 | 6,28,869 | 6,94,521 | 7,75,707 | 7,91,000 | 8,96,112 | 10,38,877 | 11,78,086 | 12,44,579 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -21,455 | -13,298 | 1,795 | -57,148 | -80,252 | -42,148 | -59,143 | 4,904 | -74,699 | -97,820 | -92,270 | -4,504 |
| Investing | -491 | -1,973 | -667 | 1,409 | -13,463 | -73 | 1,741 | -547 | -1,694 | -3,409 | -2,212 | -3,441 |
| Financing | 26,916 | 10,383 | 1,950 | 52,018 | 93,616 | 43,399 | 60,424 | -8,371 | 75,518 | 1,01,261 | 94,159 | 9,265 |
| Net Cash Flow | 4,970 | -4,888 | 3,079 | -3,720 | -98 | 1,179 | 3,023 | -4,014 | -874 | 32 | -323 | 1,319 |
| Free Cash Flow | -21,498 | -13,456 | 1,614 | -57,237 | -80,351 | -42,277 | -59,234 | 4,604 | -74,821 | -98,143 | -93,110 | -4,841 |
| CFO/OP | -79 | -40 | 23 | -124 | -144 | -71 | -83 | 15 | -94 | -100 | -82 | 3 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 20% | 18% | 6% | 17% | 23% | 15% | 21% | 21% | 20% | 21% | 21% | 21% |
Documents
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Company Information
Power Finance Corporation Limited is a Systemically Important Non-Deposit taking NBFC registered with the RBI as an Infrastructure Finance Company. It is engaged in extending financial assistance to the Indian power sector. [1]