Intimation
PFC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Power Finance Corporation reported its highest ever standalone net profit of INR 20,051 crore for FY2026, up 16% YoY, driven by 13% growth in net interest income and INR 1,800 crore in provision reversals. Key financial metrics include yield at 9.96%, cost of funds at 7.50%, spread at 2.46%, and net NPA at a new low of 0.13%. The company announced a major strategic development - the merger of PFC and REC with in-principle board approval, targeting completion by April 1, 2027. Management guided for FY27 loan growth of around 10% and spread in the range of 2.40%-2.50%, slightly lower than current levels due to competitive pressure and prepayment risks from declining interest rates.
The company remains the highest profit-making NBFC in India with strong capital adequacy (CRAR 23.44%). However, guidance for margin compression in FY27 and competitive refinancing pressures from banks may weigh on near-term profitability despite the transformational REC merger expected next year.