Power Finance Corporation (PFC) announced a strong financial performance for H1’26, with a consolidated Profit After Tax (PAT) of ₹16,816 crores, marking a 17% increase year-on-year. The group loan asset book grew by 10% to ₹11,43,370 crores. Net NPA ratio is at the lowest level in the last 10 years and is at 0.37%. PFC also declared an interim dividend of ₹3.65 per share.
Financial Performance Highlights
Power Finance Corporation (PFC) reported a consolidated Profit After Tax (PAT) of ₹16,816 crores for the first half of FY26 (H1’26), reflecting a robust 17% year-on-year increase. The group’s loan asset book also demonstrated healthy growth, reaching ₹11,43,370 crores as of September 30, 2025, a 10% increase compared to the previous year.
Asset Quality
PFC continues to demonstrate improvements in asset quality. The consolidated gross NPA level for H1’26 stood at 1.45%, while the net NPA was at 0.30%.
Standalone Performance
On a standalone basis, PFC’s loan asset book registered a 14% growth in H1’26, reaching ₹5,61,210 crores. This growth was supported by strong disbursements of approximately ₹86,000 crores, a 30% increase compared to the previous half-year. A significant portion of the H1 disbursements, around 57%, was directed towards the distribution segment, with 30% allocated to the generation segment, which encompasses both renewable and conventional energy projects.
Dividend Announcement
Reflecting its commitment to shareholder returns, PFC’s board has declared an interim dividend of ₹3.65 per share, bringing the cumulative interim dividend for FY’26 to ₹7.35 per share.
Key Financial Indicators
Key financial indicators for H1’26 include a yield of 9.98% and a cost of funds at 7.43%. The spread and Net Interest Margin (NIM) remained within the guided range, at 2.55% and 3.62% respectively. As of September 30, 2025, PFC’s Capital to Risk-Weighted Assets Ratio (CRAR) stood at 21.62%, with Tier 1 capital at 19.89%, well above regulatory requirements.
Cross-Border Financing
PFC has expanded its footprint with its first-ever cross-border financing deal in Bhutan, approved by the Reserve Bank of India. This involves a ₹4,800 crores deal to finance the 600 MW Khorlochhu Hydro Power Project, a strategic partnership between Druk Green Power Corporation Limited and Tata Power Company.
Renewable Energy
PFC maintains its position as the largest renewable sector financier in India, with a renewable loan book of ₹84,680 crores as of September 30, 2025.
Borrowings
As of September 30, 2025, PFC’s outstanding borrowing stood at ₹4,74,430 crores, with approximately 20% being foreign currency borrowing. Outstanding foreign currency borrowing amounted to USD 10.4 billion, of which 68% is USD denominated, 19% JPY, and 11% in EUR. The company maintains a 95% hedging ratio on its total foreign currency portfolio.
Guidance
PFC reaffirmed its loan book growth guidance of 10%-11% for FY26.
Source: BSE
