Power Finance Corporation
Power Finance Corporation has reported 5% growth in the net profit to Rs 4745.40 crore in the quarter ended June 2026 (Q1FY2027). Net Interest Income (NII) of the company declined 4% to Rs 5234 crore, while the company has maintained stable asset quality in Q1FY2027.
The company has maintained steady in Net Interest Margin (NIM) at 3.54% in Q1FY2027 from 3.55% in the preceding quarter. The interest spreads of the company rose slightly to 2.49% in Q1FY2027 from 2.46% in the preceding quarter and
Quarterly performance
The company has posted flat Income from operations at Rs 13736.40 crore in the quarter ended June 2026. Other income improved 582% to Rs 258.50 crore. Total income increased 2% to Rs 13994.90 crore in the quarter ended June 2026. The interest expense increased 3% to Rs 8502.88 crore.
The employee expenses moved up 12% to Rs 79.03 crore, while the other expenditures fell 92% to Rs 47.30 crore in the quarter ended June 2026. The ensuing Gross Profit stood at Rs 5365.69 crore in the quarter ended June 2026, showing an increase of 11% on yoy basis.
The depreciation during the quarter under review stood at Rs 8.60 crore down from Rs 4.82 crore in Q1FY2026. Provisions amounting to Rs 556.0 crore were reversed in Q1FY27 lower than reversals of Rs 681.82 crore in Q1FY2026. The Profit before Tax rose 7% to Rs 5913.09 crore in the quarter ended June 2026. An effective tax rate was higher at 19.7% in Q1FY2027 compared with 18.3% in Q1FY2026. PAT increased 5% to Rs 4745.40 crore in Q1FY2027 over Q1FY2026.
Highlights:
Loan assets of the company increased 4% to Rs 570045 crore at end June 2026, as the generation loan book moved up 4% to Rs 270117 crore, while transmission loan book moved up 16% to Rs 44161 crore and distribution declined 2% to Rs 190021 crore at end June 2026.
As per the borrower segment wise classification, the private sector loan book rose 4% to Rs 133209 crore, while the government sector loan book moved up 4% to Rs 436836 crore end June 2026.
Disbursement of the company declined 44% to Rs 20177 crore in Q1FY2027, as the generation disbursement declined 51% to Rs 5413 crore, while distribution disbursements declined 57% to Rs 9837 crore in Q1FY2027. As per the borrower segment wise classification, the private sector disbursements declined 25% to Rs 6006 crore, while the government sector disbursements dipped 50% to Rs 14170 crore in Q1FY2027.
Outstanding Borrowings increased by 3% to Rs 475463 crore at end June 2026, driven by bonds borrowing rising 4% to Rs 382807 crore at end June 2026. Term loans rose 7% to Rs 92656 crore at end June 2026.
NIM of the company declined 14 bps yoy to 3.54% in Q1FY2027. The yield on assets eased 45 bps to 9.56%, while cost of funds dipped 33 bps yoy to 7.07%.
The gross stage 3 asset was steady at 1.11% end June 2026 from 1.09% a quarter ago, which entirely related to private sector exposure. Net stage 3 asset was flat at 0.15% end June 2026 from 0.15% a quarter ago.
Capital Adequacy Ratio stood at 23.35% at end June 2026 compared to 22.37% a year earlier.
Book value of the company stood at Rs 328.9 per share at end June 2026. Adjusted Book value (net of net stage 3 assets) stood at Rs 326.3 per share at end June 2026.
Financial Performance FY2026
For the year ended March 2026 (FY2026), Power Finance Corporation reported 10% increase in Income from Operations at Rs 55072.80 crore, while interest expense increased 9% to Rs 33176.92 crore, leading to a 13% rise in NII to Rs 21895.88 crore. Other income increased 7% to Rs 3468.79 crore. The Staff cost rose 13% to Rs 268.58 crore, while the other expenditure jumped 121% to Rs 671.83 crore. The ensuing Gross Profit moved up 6% to Rs 22982.25 crore in FY2026. The Depreciation stood at Rs 24.18 crore, while provisions reversals was strong at 1816.36 crore in FY2026. The profit before Tax to jumped 17% to Rs 24774.43 crore in FY2026. The Tax expense increased 24% to Rs 4723.09 crore. PAT improved 16% to Rs 20051.34 crore in FY2026.
?| Power Finance Corporations: Standalone Results | ||||||
| Particulars | 2606 (3) | 2506 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Income from operations | 13736.40 | 13738.89 | 0 | 55072.80 | 49874.70 | 10 |
| Other Income | 258.50 | 37.89 | 582 | 3468.79 | 3253.06 | 7 |
| Total Income | 13994.90 | 13776.78 | 2 | 58541.59 | 53127.76 | 10 |
| Interest Expenses | 8502.88 | 8269.73 | 3 | 33176.92 | 30511.94 | 9 |
| Other expenses | 126.33 | 670.89 | -81 | 2382.42 | 966.51 | 146 |
| Gross profit | 5365.69 | 4836.16 | 11 | 22982.25 | 21649.31 | 6 |
| Depreciation | 8.60 | 4.82 | 78 | 24.18 | 19.83 | 22 |
| Provisions | -556.00 | -681.82 | -18 | -1816.36 | 457.11 | LP |
| Profit before tax | 5913.09 | 5513.16 | 7 | 24774.43 | 21172.37 | 17 |
| Provision for tax | 1167.69 | 1011.66 | 15 | 4723.09 | 3820.18 | 24 |
| Net profit | 4745.40 | 4501.50 | 5 | 20051.34 | 17352.19 | 16 |
| EPS*(Rs) | 57.5 | 54.6 | ? | 60.8 | 52.6 | ? |
| Equity | 3300.1 | 3300.1 | ? | 3300.1 | 3300.1 | ? |
| Adj BV (Rs) | 326.3 | 281.8 | ? | 308.0 | 269.2 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, figures in Rs Crore, PL: Profit to Loss, LP: Loss to Profit | ||||||
| Source: Capitaline Corporate Database | ||||||
Powered by Capital Market - Live News