Power Finance Corporation (PFC) announced a strong financial performance for FY 2025-26, with standalone Profit After Tax (PAT) increasing by 16% to ₹20,051 crore. The company’s total income also saw a growth of 10% to ₹58,541.59 crore. PFC maintained a healthy capital adequacy ratio of 23.44%, reflecting its strong financial position and prudent risk management. These results highlight the company’s continued commitment to financing India’s energy transition and strengthening its ESG practices.
Strong Financial Performance in FY 2025-26
Power Finance Corporation (PFC) has reported a robust financial performance for the fiscal year ended March 31, 2026. The company’s standalone Profit After Tax (PAT) witnessed a substantial increase of 16%, reaching ₹20,051 crore, a significant jump from ₹17,352 crore in FY 2024-25. This consistent growth underscores PFC’s strong earnings profile and its commitment to delivering sustainable value to its stakeholders.
Revenue and Net Worth Growth
PFC’s total income for FY 2025-26 grew by 10% to ₹58,541.59 crore, up from ₹53,127.76 crore in the previous fiscal year. The company’s net worth also saw a notable increase of 12.75%, reaching ₹1,02,531.94 crore as of March 31, 2026, up from ₹90,936.87 crore as of March 31, 2025. This expansion in net worth strengthens the company’s capital base and financial resilience, enabling it to undertake larger projects and support India’s growing energy infrastructure needs.
Key Operating and Profitability Metrics
The company also demonstrated improvements in its operational efficiency and profitability. The operating margin percentage increased from 39.82% in FY 2024-25 to 42.28% in FY 2025-26. Similarly, the net profit margin increased from 32.66% to 34.25%, reflecting effective cost management and strong asset quality. PFC’s commitment to prudent leverage and financial discipline is also evident in the improved net debt-to-equity ratio, which stood at 4.75 times as of March 31, 2026, compared to 5.12 times in the previous year.
Loan Assets and Renewable Energy Focus
PFC’s absolute loan book addition accelerated significantly post-FY23, with nearly ₹30,000 crore added between FY24 and FY26 alone. The renewable energy loan book has more than doubled over the last five years, reflecting PFC’s strong commitment to clean energy financing. Renewable energy assets now account for 32% of PFC’s total outstanding generation loan portfolio, supporting nearly 66 GW of renewable energy capacity across the country.
These positive financial results and strategic initiatives reinforce PFC’s position as a leading financier in India’s energy sector, contributing to the nation’s sustainable development goals.
Source: BSE
