NSE: PFC · BSE: 532810
POWER FIN CORP LTD.
Operates as a government-owned non-banking financial company that lends to Indian power-sector utilities across generation, transmission, and distribution. Power Finance Corporation (PFC) borrows in domestic and international markets and on-lends at a spread of 2.46% in FY26, with a net interest margin of 3.55%. The consolidated loan book of ₹11.64 lakh crore is the largest among Indian NBFCs, including a renewable-energy book of ₹1.65 lakh crore. The loan mix is shifting from conventional thermal generation (~50% of book now, down from 75%) toward renewables and distribution. Asset quality is at historic lows — net credit-impaired ratio 0.15%, gross 1.09% — with 80% of the peak NPA book resolved. FY26 saw ₹2.85 lakh crore of sanctions against ₹80,000 crore disbursed, reflecting the long gestation of power infrastructure projects. The cost structure is light for an NBFC — employee cost is 0.5% of revenue and other opex 2.8%, with no material inputs — and PFC has approved a merger of REC into itself, targeted April 1, 2027, at a swap ratio of 88 PFC shares per 100 REC shares. AR · MarketPing reader · 2026-08-03
Revenue streams, as the annual report describes them. Lending to power-sector utilities. Spread-driven, government-owned power-sector NBFC with structural long-gestation infrastructure exposure
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 76,262 | 77,568 | 91,097 | 1,06,502 | 1,15,444 |
| EBITDA (ex other income) | 68,065 | 73,508 | 91,526 | 1,03,261 | 1,12,245 |
| margin % | 89.3 | 94.8 | 100.5 | 97.0 | 97.2 |
| Owners' profit | 14,015 | 15,889 | 19,761 | 22,991 | 25,901 |
| EPS, as reported (₹) | 53.08 | 60.19 | 59.88 | 69.67 | 78.49 |
| ROE % · ROCE % | 19.5 · — | 18.9 · — | 19.7 · — | 19.7 · — | 19.4 · — |
| Debt / equity (x) | — | — | — | — | — |
| Cash from operations | 1,632 | (74,699) | (97,820) | (92,269) | (4,505) |
| Capex | (120) | (123) | (323) | (837) | (337) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 25,722 | 26,798 | 29,265 | 28,539 | 28,890 | 29,095 | 28,920 | 28,527 |
| Profit before tax | 9,368 | 9,816 | 10,555 | 11,199 | 10,057 | 10,502 | 11,092 | 11,260 |
| Net profit | 7,215 | 7,760 | 8,358 | 8,981 | 7,834 | 8,212 | 8,598 | 8,998 |
| EPS (₹) | 16.07 | 17.66 | 19.14 | 20.81 | 17.40 | 19.07 | 21.21 | 21.25 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| POWER FIN CORP LTD. ◆ | 1,04,415 | 4.0 | 0.60 | — | 19.4 | — | 10.0 | 100.0 |
| INDIAN RAILWAY FIN CORP L | 97,530 | 13.6 | 1.72 | — | 12.4 | — | — | 101.1 |
| REC LIMITED | 76,363 | 4.8 | 0.90 | — | 19.2 | — | 10.9 | 97.1 |
| HSG & URBAN DEV CORPN LTD | 29,388 | 6.9 | 1.34 | — | 18.4 | — | 12.7 | 97.6 |
| INDIAN RENEWABLE ENERGY | 28,250 | 14.3 | 2.05 | — | 13.6 | — | — | 78.5 |
| IFCI LTD | 15,896 | 92.2 | 1.03 | — | 2.8 | — | 0.0 | 67.2 |
| TOURISM FINANCE CORP. OF | 7,291 | 16.7 | 7.49 | — | 4.6 | — | — | 90.1 |
| HARYANA FINANCIAL CORPORATION | 1,189 | 1145.0 | — | — | — | 4.9 | — | — |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 4.0 | 13.9 | 1 of 8 | 100% |
| P/B | 0.6 | 1.3 | 1 of 7 | 100% |
| ROE | 19.4 | 13.6 | 1 of 7 | 100% |
| EBITDA margin | 100.0 | 97.1 | 2 of 7 | 83% |
| Revenue growth | (0.0) | (0.0) | 4 of 7 | 50% |
| Profit growth | 0.2 | (1.6) | 4 of 8 | 57% |
| Market cap | 104415 | 28250 | 1 of 9 | 100% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 24 Oct 2026 · PFC incorporates Khushkhera Transmission SPV for 400 KV Rajasthan project | strategic transactions | medium | — | — |
| 23 Oct 2026 · Two transmission SPVs incorporated for renewable power projects | strategic transactions | medium | — | — |
| 22 Oct 2026 · PFC subsidiary formed for Northern Region transmission project | strategic transactions | medium | — | — |
| 19 Oct 2026 · PFC gets NOC from BSE and NSE for merger of REC into PFC | strategic transactions | high | — | — |
| 15 Oct 2026 · PFC gets RBI nod for merger of REC into itself; shareholders approval next | strategic transactions | high | — | — |
| 15 Oct 2026 · PFC unit incorporates SPV for Kadapa II REZ transmission project | strategic transactions | medium | — | — |
| 12 Oct 2026 · PFC transfers 3 transmission SPVs to Power Grid and AnantGrid | strategic transactions | medium | — | — |
| 7 Oct 2026 · PFC transfers Satara Power Transmission arm to Adani Energy Solutions | strategic transactions | high | — | — |
| 1 Oct 2026 · PFC Executive Director Shahi retires on superannuation | management changes | medium | — | — |
| 28 Sept 2026 · PFC transfers two transmission SPVs to successful bidders | strategic transactions | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.