PFC - Power Fin.Corpn.
📢 Recent Corporate Announcements
Power Finance Corporation (PFC) has completed the transfer of its wholly-owned subsidiary, NES Pune East New Transmission Limited, to Power Grid Corporation of India Limited (PGCIL). The transaction, finalized on March 12, 2026, involved a total consideration of approximately ₹8.05 crore. This SPV was established for the development of a transmission network expansion scheme in Maharashtra. Since this is a routine business activity for PFC's consulting arm, the financial impact on the company's overall turnover is negligible.
- Transfer of NES Pune East New Transmission Limited completed on March 12, 2026
- Total consideration received for the sale is ₹8,04,74,138
- The buyer is Power Grid Corporation of India Limited, the successful bidder
- SPV was created for the 765/400 Kv Pune East transmission network expansion in Maharashtra
- The subsidiary's contribution to PFC's total turnover and net worth is negligible
Power Finance Corporation (PFC) has completed the transfer of its step-down subsidiary, NES Dharashiv Transmission Limited, to Montecarlo Limited on March 12, 2026. The transaction was executed for a total consideration of approximately Rs 3.61 crore following a successful bidding process. This SPV was specifically established for the development of a network expansion scheme in Maharashtra to facilitate the evacuation of renewable energy. As per the filing, the financial contribution of this unit to PFC's overall turnover and net worth is negligible.
- Total consideration received for the transfer is Rs 3,61,11,559.
- The buyer, Montecarlo Limited, is an independent entity not belonging to the promoter group.
- The project involves RE power evacuation from Dharashiv and Beed districts in Maharashtra.
- The transfer was completed on March 12, 2026, in accordance with Ministry of Power guidelines.
Power Finance Corporation (PFC) has announced the formal dissolution and strike-off of its wholly-owned subsidiary, Sakhigopal Integrated Power Company Limited (SIPCL), effective March 9, 2026. SIPCL was originally incorporated in 2008 as a Special Purpose Vehicle (SPV) for a 4,000 MW Ultra Mega Power Project in Odisha. Following the decision to cancel the project, the Ministry of Power granted approval for the closure in November 2025. PFC has clarified that SIPCL was not a material subsidiary, ensuring no significant impact on the parent company's consolidated financials.
- SIPCL was struck off by the Registrar of Companies effective March 9, 2026, under Section 248 of the Companies Act 2013.
- The subsidiary was an SPV for a 4,000 MW Ultra Mega Power Project in Odisha that was subsequently cancelled.
- Ministry of Power, Govt of India, gave its approval for the closure of the company on November 27, 2025.
- PFC confirmed that SIPCL was not a material subsidiary and its dissolution will not affect core operations.
Power Finance Corporation (PFC) has successfully completed the transfer of its step-down subsidiary, Saswad Transmission Limited, to Maharashtra State Electricity Transmission Company Limited. The transaction was finalized on February 26, 2026, following a competitive bidding process for the development of a substation project in Pune. PFC received a total consideration of approximately ₹3.79 crore for the sale. This move is part of PFC's standard business model of incubating project-specific Special Purpose Vehicles (SPVs) and transferring them to successful bidders.
- Sale of Saswad Transmission Limited completed on February 26, 2026
- Total consideration received for the transfer is ₹3,79,31,992
- Buyer identified as Maharashtra State Electricity Transmission Company Limited, a non-promoter entity
- The SPV was established for the development of a 400/220 kV AIS Substation in Pune, Maharashtra
- Financial impact is negligible as the subsidiary contributed minimally to PFC's total turnover and net worth
The Board of Power Finance Corporation (PFC) has approved an in-principle proposal to merge with its subsidiary, REC Limited. This move follows the Union Budget 2026-27 announcement aimed at restructuring public sector NBFCs to achieve greater scale and operational efficiency. PFC currently holds a 52.63% stake in REC, and the merged entity will continue to be classified as a Government Company. A detailed merger scheme is currently being finalized and will be subject to further regulatory approvals.
- Board grants in-principle approval for the merger of PFC and REC Limited.
- Restructuring follows the Union Budget 2026-27 vision for Public Sector NBFCs.
- PFC currently holds 52.63% of the Government's holding in REC.
- The consolidated entity will remain a 'Government Company' under the Companies Act, 2013.
- Detailed merger scheme and swap ratios are yet to be finalized and disclosed.
The Board of Power Finance Corporation (PFC) has provided in-principle approval for a merger with its subsidiary, REC Limited, following a directive in the Union Budget 2026-27. PFC currently holds a 52.63% stake in REC, and the consolidation aims to enhance scale and operational efficiency among public sector NBFCs. The merged entity will continue to be classified as a Government Company. A detailed merger scheme is currently being finalized and will be subject to further regulatory and statutory approvals.
- In-principle approval granted for the merger of PFC and REC Limited to create a larger lending entity.
- Restructuring follows the Union Budget 2026-27 proposal (Para 43) for public sector NBFC efficiency.
- PFC currently owns a 52.63% controlling stake in REC Limited.
- The combined entity will remain a Government Company under the Companies Act, 2013.
- Detailed merger scheme and share exchange ratios are yet to be finalized and disclosed.
The Board of Power Finance Corporation (PFC) has granted in-principle approval for a merger with its subsidiary, REC Limited, following a proposal in the Union Budget 2026-27. This restructuring aims to achieve greater scale and improve operational efficiency within public sector NBFCs. PFC currently holds a 52.63% stake in REC, and the merged entity will continue to be classified as a Government Company. A detailed merger scheme is currently being finalized and will be subject to further regulatory and shareholder approvals.
- PFC Board approved the in-principle merger with REC Limited to enhance scale and efficiency.
- The move follows the Union Budget 2026-27 announcement regarding the restructuring of Public Sector NBFCs.
- PFC currently maintains a 52.63% controlling interest in REC Limited.
- The combined entity will remain a 'Government Company' under the Companies Act, 2013.
- A detailed merger scheme and swap ratios are yet to be finalized and disclosed.
Power Finance Corporation (PFC) reported a robust performance for Q3 FY26, with standalone net profit increasing 14.6% YoY to ₹4,763.33 crore. Total revenue from operations grew to ₹14,655.84 crore, primarily driven by a 12% rise in interest income. The company declared its third interim dividend of ₹3.50 per share for FY26, with a record date of February 20, 2026. Asset quality remains healthy with a high provision coverage ratio of 84.23% on Stage 3 assets and a total loan book of ₹5.69 lakh crore.
- Standalone Net Profit grew 14.6% YoY to ₹4,763.33 crore for the quarter ended December 31, 2025.
- Declared a third interim dividend of ₹3.50 per share, bringing the total FY26 dividend to ₹10.85 so far.
- Total Revenue from Operations reached ₹14,655.84 crore, up from ₹13,043.69 crore in the same quarter last year.
- Loan assets (principal outstanding) stood at ₹5,69,626.94 crore with a Stage 3 provision coverage of 84.23%.
- Interest income for the nine-month period ended December 2025 rose to ₹41,147.54 crore.
Power Finance Corporation (PFC) reported a robust performance for Q3 FY2025-26, with standalone Net Profit (PAT) growing 14.6% YoY to ₹4,763.33 crore. Revenue from operations increased by 12.3% YoY to ₹14,655.84 crore, primarily supported by a steady rise in interest income. Asset quality continues to trend positively, with Stage 3 assets (GNPA) reducing to 1.64% compared to 1.94% in March 2025. The Board also declared a third interim dividend for the financial year, maintaining its commitment to shareholder returns.
- Net Profit (PAT) increased 14.6% YoY to ₹4,763.33 crore in Q3 FY26.
- Total Revenue from Operations grew 12.3% YoY to ₹14,655.84 crore.
- Stage 3 (GNPA) assets improved to 1.64% of total loans from 1.94% in March 2025.
- Provision Coverage Ratio (PCR) for Stage 3 assets remains high at 84.23%.
- Total loan book (principal outstanding) reached ₹5,69,627 crore as of December 31, 2025.
Power Finance Corporation (PFC) reported a strong performance for Q3 FY26, with standalone net profit growing 14.6% YoY to ₹4,763.33 crore. Total revenue from operations increased by 12.4% YoY to ₹14,655.84 crore, primarily driven by a rise in interest income. The company declared a third interim dividend of ₹3.50 per share, bringing the total interim dividend for FY26 to ₹10.85 so far. Asset quality continues to improve, with Stage 3 (NPA) loans decreasing to ₹9,348 crore from ₹10,517 crore in March 2025.
- Net Profit for Q3 FY26 stood at ₹4,763.33 crore, up from ₹4,154.92 crore in Q3 FY25.
- Declared third interim dividend of ₹3.50 per share (35%) for FY 2025-26.
- Total loan outstanding reached ₹5,69,626.94 crore as of December 31, 2025.
- Stage 3 provision coverage ratio remains robust at 84.23% with absolute Stage 3 assets declining.
- Interest income grew 12.2% YoY to ₹13,935.87 crore during the quarter.
Power Finance Corporation (PFC) has successfully transferred two of its wholly-owned subsidiaries, SR And ER Power Transmission Limited and Morena I SEZ Transmission Limited, to winning bidders. The first SPV was sold to Power Grid Corporation of India for ₹19.63 crore, while the second was sold to Enerica Infra 1 Private Limited for ₹22.36 crore. These entities were created for specific power transmission projects and their divestment is a standard part of PFC Consulting's business model. The financial contribution of these units to PFC's total turnover is negligible.
- Transfer of SR And ER Power Transmission Limited to Power Grid for ₹19.63 crore
- Transfer of Morena I SEZ Transmission Limited to Enerica Infra 1 Private Limited for ₹22.36 crore
- Total consideration received from the two transactions is approximately ₹41.99 crore
- The transactions were completed on February 3, 2026, following Ministry of Power guidelines
Power Finance Corporation (PFC) has clarified that the Union Budget 2026 proposed a restructuring of PFC and REC to enhance efficiency in public sector NBFCs. This follows PFC's 2019 acquisition of a 52.63% stake in REC, which made REC its subsidiary. The company is now scheduling a Board Meeting to discuss the government's vision and determine the next steps for a potential merger. Investors should note that this structural change aims to create a larger, more efficient credit disbursement entity for the power sector.
- Union Budget 2026 proposes restructuring PFC and REC for better scale and efficiency.
- PFC currently owns a 52.63% stake in REC following a March 2019 acquisition.
- Board Meeting to be convened soon to deliberate on the government's restructuring directive.
- Proposal is part of the 'Viksit Bharat' vision for NBFC credit disbursement targets.
Power Finance Corporation (PFC) has informed the exchanges about a change in its senior management team. Shri Raj Kumar Malhotra, serving as the Executive Director, retired from the services of the corporation effective January 31, 2026. The retirement is a result of superannuation, which is a routine administrative process for reaching the age of retirement. This transition is part of the standard personnel cycle within the government-owned undertaking.
- Shri Raj Kumar Malhotra, Executive Director, retired effective January 31, 2026
- The retirement is based on attaining the age of superannuation as per company policy
- The intimation was filed under Regulation 30 of SEBI (LODR) Regulations, 2015
- No immediate successor for the specific Executive Director role was named in this filing
Power Finance Corporation (PFC) has announced the promotion of Sh. Deepak Jain to the position of Executive Director, effective January 16, 2026. Mr. Jain, who previously served as Chief General Manager, has over 26 years of experience in project financing and deal structuring. His expertise also extends to stressed asset resolution and resource mobilization, which are critical areas for a non-banking financial company (NBFC) like PFC. This appointment is at the senior management level, positioned one level below the Board of Directors.
- Promotion of Sh. Deepak Jain to Executive Director effective January 16, 2026
- Deepak Jain possesses over 26 years of experience in Project Financing and deal structuring
- Expertise includes critical functions such as stressed asset resolution and resource mobilization
- Educational background includes a B.E. from Delhi Institute of Technology and an MBA from IMT Ghaziabad
- The role is designated as Senior Management, one level below the Board of Directors
Power Finance Corporation (PFC) has announced a public issue of secured, non-convertible debentures (NCDs) with a base size of ₹500 crore and an option to retain oversubscription up to ₹4,500 crore. The total Tranche I issue limit is ₹5,000 crore, which is part of a larger ₹10,000 crore shelf limit. The NCDs offer tenors of 5, 10, and 15 years with coupon rates ranging from 6.85% to 7.30% per annum depending on the investor category. The issue is scheduled to open on January 16, 2026, and close on January 30, 2026.
- Total Tranche I issue size of ₹5,000 crore, including a ₹4,500 crore green shoe option.
- Coupon rates range from 6.85% to 7.30% p.a. across 5, 10, and 15-year tenors.
- Includes Series III Zero Coupon NCDs with a face value of ₹1,00,000.
- NCDs are secured by a first pari-passu charge on book debts with 100% security cover.
- Subscription period is set from January 16, 2026, to January 30, 2026.
Financial Performance
Revenue Growth by Segment
Total operating income grew 14.7% YoY from INR 46,113 Cr in FY24 to INR 52,889 Cr in FY25. For Q1FY26, income stood at INR 13,276 Cr. Growth is driven by a 13% YoY expansion in the gross loan book, which reached INR 5,43,120 Cr in FY25.
Geographic Revenue Split
Not specifically disclosed by region, but operations are concentrated in India with a shift in borrower profile: Government sector loans decreased from 81% (March 2024) to 77% (June 2025), while private sector exposure increased from 19% to 23% in the same period.
Profitability Margins
Net Interest Margins (NIMs) improved from 3.3% in FY24 to 3.6% in FY25 due to healthy yields on advances and low cost of funds. Return on Average Total Assets (RoTA) was 3.2% in FY25 and improved to 3.3% (annualized) in Q1FY26.
EBITDA Margin
Not applicable for NBFC; however, PAT grew 21% YoY to INR 17,352 Cr in FY25. Interest coverage ratio improved from 1.63x in FY24 to 1.69x in FY25, reflecting stronger debt-servicing capacity relative to earnings.
Capital Expenditure
As a financial institution, PFC focuses on loan disbursements rather than traditional CapEx. Gross loan book stood at INR 5,49,786 Cr as of June 30, 2025, with a 13% growth rate in FY25.
Credit Rating & Borrowing
Maintains 'CARE AAA; Stable' and 'CRISIL AAA/Stable' ratings. Borrowings totaled INR 4,65,763 Cr as of March 31, 2025, with 57% sourced from domestic bonds and 19% from rupee term loans, benefiting from quasi-sovereign status to access cost-effective rates.
Operational Drivers
Raw Materials
Capital/Funds are the primary 'raw material'. Borrowing mix as of June 2025: Domestic bonds (57%), Foreign currency borrowings (20%), Rupee term loans (19%), 54EC bonds (2%), and Subordinate liabilities (1%).
Import Sources
Funds are sourced domestically and internationally through external commercial borrowings and international agencies to diversify the resource base and optimize interest costs.
Key Suppliers
Major lenders include Mizuho Bank (INR 250 Cr), IDFC First Bank (INR 350 Cr), ICICI Bank (INR 6,000 Cr), and HDFC Bank (INR 3,500 Cr) for working capital demand loans.
Capacity Expansion
Loan book capacity reached INR 5,49,786 Cr as of June 2025. Infrastructure lending is a new venture with INR 12,881 Cr (2% of book) as of June 2025, with a regulatory cap of 30% for non-power infrastructure.
Raw Material Costs
Cost of funds is minimized by quasi-sovereign status. Borrowings increased 14% YoY in FY25 to INR 4,65,763 Cr. Opex/ATA remains very low at 0.13% for FY25 due to a wholesale lending model.
Manufacturing Efficiency
Wholesale lending model allows for high efficiency with limited manpower, reflected in the low Opex/ATA ratio of 0.13%.
Logistics & Distribution
Not applicable; distribution is handled through a wholesale lending model to central/state utilities and private developers.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
PFC is diversifying into the infrastructure sector (roads, ports, metro rail) and expanding its green energy portfolio. It acts as a nodal agency for the Revamped Distribution Sector Scheme (outlay of INR 3,03,758 Cr) and is increasing private sector lending (now 23% of book) to capture renewable energy growth.
Products & Services
Rupee term loans, foreign currency loans, short-term loans, equipment lease financing, and transitional financing for power and infrastructure projects.
Brand Portfolio
Power Finance Corporation (PFC), REC Limited (subsidiary), PFC Consulting Limited (subsidiary).
New Products/Services
Lending to non-power infrastructure (e-vehicle fleets, charging infra, smart cities) and logistics, currently contributing 2% to the loan book with significant headroom for expansion.
Market Expansion
Expanding into the infrastructure and logistics sectors. Incorporated NERGS III Siang Basin Transmission Limited in Nov 2025 as a SPV for transmission project development.
Market Share & Ranking
Significant market player in India's power financing; nodal agency for major GoI power schemes.
Strategic Alliances
Acquired a 52.63% stake in REC Limited. Transferred KPS III HVDC Transmission Limited to Adani Energy Solutions Limited in December 2025 following a competitive bidding process.
External Factors
Industry Trends
Shift toward green energy transition; PFC is expanding financing for renewable energy projects (15% of current book) to align with India's carbon reduction goals.
Competitive Landscape
Primary competition from REC Limited (now a subsidiary) and major commercial banks, though PFC's specialized focus and government linkages provide a distinct advantage.
Competitive Moat
Durable moat derived from 'Quasi-Sovereign' status, which ensures a lower cost of capital than private competitors and a mandate as a nodal agency for government schemes, making it indispensable to India's power infrastructure.
Macro Economic Sensitivity
Highly sensitive to Indian government power sector policies and interest rate cycles. Strategic importance to GoI (55.99% ownership) provides a safety net for credit stability.
Consumer Behavior
Increasing demand for renewable energy and infrastructure financing from private developers is shifting the loan book away from purely state-backed entities.
Geopolitical Risks
Exposure to international capital markets for funding; however, 57% of borrowing is domestic, providing a buffer against global liquidity shocks.
Regulatory & Governance
Industry Regulations
Regulated by RBI as an Infrastructure Finance Company (NBFC-ND-IFC). Allowed to run off existing exposures exceeding concentration norms until maturity per RBI letter dated August 24, 2022. Permissible exposure is 30% of Tier-I capital for single borrowers.
Environmental Compliance
Indirectly exposed to environmental risks through its power portfolio; mitigating this by significantly expanding financing for renewable energy projects.
Taxation Policy Impact
Not specifically detailed, but subject to standard Indian corporate tax rates for NBFCs.
Legal Contingencies
Asset quality improvements driven by resolutions through the National Company Law Tribunal (NCLT). GNPA reduced from 9.4% in 2019 to 1.94% in March 2025 through successful legal and structural resolutions.
Risk Analysis
Key Uncertainties
Potential for significant asset quality deterioration if Stage II assets slip, given the low total PCR of 2.5%. Sectoral concentration in power remains a primary risk.
Geographic Concentration Risk
100% concentrated in India, with high exposure to weak financial profiles of certain State Power Utilities (SPUs).
Third Party Dependencies
High dependency on the Government of India for credit support and the Ministry of Power for strategic direction.
Technology Obsolescence Risk
Cybersecurity is identified as a key monitorable social risk that could affect regulatory compliance and reputation.
Credit & Counterparty Risk
Net NPA ratio is low at 0.39% (June 2025), but private sector exposure is rising (23%), which typically carries higher credit risk than government-backed loans.