Power Finance Corporation Ltd logo

Power Finance Corporation Ltd

PFC NSE

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]

AI Verdict: BUY Confidence: 8%

PFC trades at an extremely attractive PE of 4.2x with a consistent 21% ROE over 3-5 years, supported by unanimous analyst buy ratings (15/15). The stock offers a compelling combination of deep value, strong profitability, and a healthy 3.39% dividend yield, though low interest coverage and muted sales growth warrant monitoring.

Key Fundamentals

LargecapFinancial InstitutionFinancial Services
Market Cap
1.4L Cr
Volatility
Moderate
P/E Ratio
5.51
EBITDA
1.1L Cr
Return on Equity
19.7%
Debt to Equity
8.38
Book Value
₹402.6
EPS
₹62.81
52W High
₹486.5
52W Low
₹329.9

Technical Indicators

Key Insights

Strengths

4
  • Stock is trading at 1.09 times its book value
  • Stock is providing a good dividend yield of 3.61%.
  • Company has been maintaining a healthy dividend payout of 24.6%
  • Company's working capital requirements have reduced from 18.3 days to 12.4 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

Revenue Growth
7.09% ↗
Net Income Growth
15.59% ↗
Cash Flow Change
5.67% ↗
ROE
-0.15% ↘
ROCE
-0.86% ↘
EBITDA Margin (Avg.)
0.76% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2d ago
BUY
Risk medium

PFC trades at an extremely attractive PE of 4.2x with a consistent 21% ROE over 3-5 years, supported by unanimous analyst buy ratings (15/15). The stock offers a compelling combination of deep value, strong profitability, and a healthy 3.39% dividend yield, though low interest coverage and muted sales growth warrant monitoring.

Bull Case 8
  • Trades at a PE of just 4.2x, significantly below sector and market averages, indicating deep value
  • Consistent ROE of 21% maintained over 1-year, 3-year, and 5-year periods demonstrates durable profitability
  • Unanimous analyst consensus with 100% buy ratings (15 out of 15 analysts) signals strong institutional conviction
  • Compounded profit growth of 18% over 3 years and 17% over 5 years shows accelerating earnings trajectory
  • Dividend yield of 3.39% with a sustainable 24.6% payout ratio provides income with room for future increases
  • Price-to-book of 1.07x means the stock trades near book value despite delivering 21% ROE, a clear valuation disconnect
  • Stock CAGR of 39% over 3 years and 34% over 5 years reflects strong price momentum and wealth creation
  • Working capital days reduced from 18.3 to 12.4 days, indicating improved operational efficiency and cash conversion
Bear Case 7
  • Low interest coverage ratio raises concerns about ability to service debt in a rising rate environment
  • 5-year compounded sales growth of only 10% suggests limited topline expansion for a financial services company
  • Potential capitalization of interest costs may overstate reported profitability and asset quality
  • TTM revenue growth of just 8% shows deceleration from the 3-year CAGR of 14%
  • As a government-owned NBFC focused on power sector lending, concentration risk in a single sector is elevated
  • Market cap of Rs 1,43,142 crore with near-book valuation implies market prices in structural risks to the lending book
  • 1-year stock CAGR of only 5% versus 39% over 3 years suggests momentum fatigue and possible re-rating limits

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 4
  • Shares fell on merger news Jun 10

    PFC shares fell 4.2% to ₹413.40 and REC dropped 3.6% to ₹336.40 after presidential approval was announced, with final swap ratio still undisclosed.

  • RBI large exposure constraint Jun 11

    Post-merger, bank exposure limit drops to 20% for the combined entity from 25% at group level, a constraint that previously made the merger unworkable.

  • Government stake dilution risk Jun 11

    Approximately 34% equity dilution needed to accommodate REC shareholders could push government stake from 56% to ~42%, below the 50% government company threshold.

  • Integration execution risk Jun 11

    Seven-year gap between PFC's 2019 acquisition and current merger, with complex multi-regulator approvals (SEBI, RBI, NCLT) and differing risk cultures (PFC provisioning 86% vs REC 51%) to harmonize.

Positives 6
  • Presidential approval for REC merger Jun 10

    President Murmu granted approval on June 10, 2026 for REC-PFC merger, creating a combined loan book exceeding ₹10 lakh crore and targeting completion by April 1, 2027.

  • Board to consider merger scheme Jun 23

    PFC board will meet June 28, 2026 to consider the formal merger scheme with REC Limited, advancing the consolidation process.

  • India's largest power financier Jun 11

    Merged entity will command 40-50% power sector market share with combined renewable portfolio of ~₹1.65 lakh crore, eliminating holding company discount from PFC's 52.63% REC stake.

  • Technical breakout targets ₹469 Jun 5

    PFC surged 5% in three days from ₹408 low; Bajaj Broking recommends buy in ₹418-428 range with ₹469 target (11% upside) within 30 days, supported by 200-DEMA support.

  • $300M global bond issuance Jun 23

    PFC priced $300 million 5.32% notes due June 30, 2031 under its Global Medium Term Note Programme, demonstrating continued access to international debt markets.

  • Cost synergies from merger Jun 11

    Merger expected to reduce cost of funds (REC at 7.34% vs PFC at 7.50%), consolidate IT spend by 30-40%, and eliminate redundancies across 600-700 overlapping roles.

Neutral 6
  • Bihar Infrapower subsidiary struck off Jun 22

    Bihar Infrapower Limited, incorporated in 2015 for Banka UMPP, struck off by RoC following Ministry of Power approval on November 27, 2025.

  • PFC Projects deregistered Jun 2

    PFC Projects Limited fully struck off by Registrar of Companies effective June 1, 2026, completing formal deregistration.

  • Three subsidiary transfers completed May 29

    PFC transferred TUMKUR II RE to Power Grid for ₹15.46 crore, Kurnool IV REZ to Resonia for ₹20.94 crore, and NERGS III to Dineshchandra Agrawal for ₹19.7 crore.

  • Pankaj Gupta appointed director Jun 22

    Pankaj Gupta appointed as part-time Non-Official Director for three months starting June 22, 2026.

  • Director (Commercial) appointed Jun 2

    Shri V. Packirisamy assumed charge as Director (Commercial) on PFC board effective June 2, 2026.

  • Executive Director retires Jun 1

    Shri G. Jawahar retired as Executive Director on May 31, 2026 upon superannuation.

TL;DR: PFC is dominated by the landmark REC merger, which received Presidential approval on June 10 and targets completion by April 2027, creating India's largest power sector financier with a combined loan book exceeding ₹10 lakh crore. The stock trades at an attractive 6.99x PE with technical support near ₹408-415, but faces near-term uncertainty from undisclosed swap ratios, government stake dilution mechanics, and complex integration challenges. The company continues raising capital globally ($300M bond) and cleaning up dormant subsidiaries. The trend is structurally positive if execution proceeds smoothly, but merger-related volatility and regulatory hurdles will persist through FY27.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
20,061
21,009
22,391
23,572
24,141
24,717
25,722
26,798
29,265
28,539
28,890
29,095
28,920
Expenses
-339
-65
-551
791
-589
310
366
429
2,148
212
1,514
1,031
416
Financing Profit
7,763
7,404
8,629
7,954
9,577
8,886
9,348
9,807
10,550
11,123
10,062
10,492
11,170
Fin. Margin %
39%
35%
39%
34%
40%
36%
36%
37%
36%
39%
35%
36%
39%
Other Income
13
9
13
22
35
20
33
24
20
90
11
27
-63
Interest
12,637
13,670
14,313
14,827
15,154
15,521
16,008
16,562
16,567
17,204
17,314
17,572
17,333
Depreciation
14
12
13
14
15
12
13
15
16
14
15
18
16
PBT
7,762
7,401
8,629
7,961
9,597
8,894
9,368
9,816
10,554
11,199
10,057
10,502
11,092
Tax %
21%
19%
23%
21%
21%
19%
23%
21%
21%
20%
22%
22%
22%
Net Profit
6,129
5,982
6,628
6,294
7,556
7,182
7,215
7,760
8,358
8,981
7,834
8,212
8,598
EPS in Rs
14.17
13.87
14.65
14.33
17.04
16.8
16.07
17.66
19.14
20.81
17.4
19.07
21.21
Gross NPA %
3.66%
3.54%
3.4%
3.13%
3.02%
2.97%
2.62%
2.3%
1.64%
1.47%
1.45%
1.26%
0.66%
Net NPA %
1.03%
1%
0.98%
0.86%
0.85%
0.84%
0.8%
0.73%
0.38%
0.31%
0.3%
0.23%
0.13%
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
24,988
27,861
27,581
48,624
54,106
62,189
71,656
76,262
77,807
91,508
1,07,106
1,15,444
Expenses
1,103
2,042
5,538
6,583
1,696
7,332
7,102
8,215
4,290
-33
3,833
3,181
Financing Profit
8,429
9,162
5,275
11,752
17,783
14,012
19,871
23,338
26,501
33,573
38,603
42,848
Fin. Margin %
34%
33%
19%
24%
33%
23%
28%
31%
34%
37%
36%
37%
Other Income
25
25
30
42
94
105
46
79
47
69
85
65
Interest
15,456
16,657
16,768
30,289
34,627
40,845
44,684
44,709
47,017
57,968
64,670
69,415
Depreciation
8
20
41
15
15
24
25
35
52
53
56
63
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
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
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
Div. Payout %
20%
30%
59%
31%
0%
35%
22%
23%
22%
23%
23%
29%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
771
CWIP
2
47
105
129
199
288
336
53
22
39
88
128
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
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-21,455
-13,298
1,795
-57,148
-80,252
-42,148
-59,143
4,904
-74,717
-97,820
-92,269
-4,504
Investing
-491
-1,973
-667
1,409
-13,463
-73
1,741
-547
-1,694
-3,409
-2,312
-3,441
Financing
26,916
10,383
1,950
52,018
93,616
43,399
60,424
-8,371
75,537
1,01,261
94,258
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
-74,840
-98,143
-93,110
-4,841
CFO/OP
-79
-40
23
-124
-144
-71
-83
15
-94
-100
-82
3
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
20%
18%
6%
17%
23%
15%
21%
21%
20%
21%
21%
21%

Shareholding Pattern

As of Mar 2026
Promoters 55.99%
FIIs 19.64%
DIIs 15.05%
Public 7.40%
Others 1.92%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
55.99%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
16.85%
17.86%
17.19%
17.93%
17.74%
18.04%
18.84%
18.66%
18.84%
18.33%
19.64%
DIIs
19.55%
19.38%
13.66%
13.57%
13.58%
12.74%
17.23%
17.93%
18.67%
17.60%
17.89%
17.52%
18.26%
17.08%
17.48%
17.16%
16.18%
16.12%
16.03%
15.48%
15.05%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
5.15%
5.51%
5.18%
6.29%
7.27%
8.17%
7.92%
7.11%
6.81%
6.45%
7.15%
6.80%
6.83%
7.31%
7.14%
7.06%
7.28%
7.46%
7.40%
8.35%
7.40%
Others
19.31%
19.12%
25.16%
24.14%
23.16%
23.10%
18.86%
18.97%
18.53%
19.96%
2.11%
1.83%
1.72%
1.69%
1.65%
1.74%
1.70%
1.76%
1.74%
1.85%
1.92%
No. of Shareholders
3,08,651
3,43,690
3,21,594
3,83,046
4,17,337
4,45,834
4,60,893
4,19,122
4,29,397
4,32,084
5,11,724
5,97,315
7,07,579
10,04,150
10,34,390
10,91,110
11,26,260
11,28,200
10,97,220
11,30,350
10,54,200

Documents

Frequently Asked Questions about Power Finance Corporation Ltd

What does Power Finance Corporation Ltd do?
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]
Where is Power Finance Corporation Ltd (PFC) listed?
Power Finance Corporation Ltd is listed on the Indian stock exchanges. It is listed on NSE: PFC and BSE: 532810. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Power Finance Corporation Ltd belong to?
Power Finance Corporation Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Power Finance Corporation Ltd?
Power Finance Corporation Ltd has a market capitalisation of approximately ₹144346.45 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Power Finance Corporation Ltd?
The Price-to-Earnings (PE) ratio of Power Finance Corporation Ltd is 5.51. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Power Finance Corporation Ltd?
Over the past 52 weeks, Power Finance Corporation Ltd has traded between a low of ₹329.9 and a high of ₹486.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Power Finance Corporation Ltd pay dividends?
Yes, Power Finance Corporation Ltd has a dividend yield of 3.34%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Power Finance Corporation Ltd?
Power Finance Corporation Ltd has a Return on Equity (ROE) of 19.70%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Power Finance Corporation Ltd on Tapetide?
On Tapetide, you can view Power Finance Corporation Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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]

Website pfcindia.com
CEO Ms. Parminder Chopra
Employees 540
Listed 2007-02-23
Face Value ₹ 10
Issued Size 3,30,01,01,760

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