Transcript of analyst/investor meet held on May 13, 2026
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. The key strategic development is the proposed merger with REC (52.63% subsidiary), targeted for April 1, 2027, subject to regulatory approvals. Management guided for FY2027 spread of 2.40%-2.50% (slight compression from current 2.46%) and loan growth of around 10%. Asset quality has strengthened with net NPAs at 0.15% and 80% of the NPA book resolved from peak levels. The company faced higher-than-expected prepayments due to declining interest rates and bank competition in refinancing commissioned assets. Management also discussed geopolitical risks impacting forex volatility and hedging strategies.
Strong financial performance with highest-ever profits; however, the merger integration, margin compression guidance, and prepayment pressures from bank competition could impact near-term profitability and loan growth trajectory.