Power Finance Corporation (PFC) has announced its financial results for the fiscal year 2025-26, reporting a record net profit of ₹20,051 crore. This marks a 16% increase compared to the previous year, driven by a 13% growth in net interest income and provision reversals amounting to approximately ₹1,800 crore.
The company’s consolidated performance highlights its position as a leader in the non-banking financial company (NBFC) sector, with a loan book valued at ₹11.64 lakh crore and a renewable energy financing portfolio of ₹1.65 lakh crore. PFC’s consolidated profit after tax (PAT) stands at ₹33,625 crore, the highest among NBFCs, with net non-performing assets (NPAs) maintained at a low 0.13%.
PFC’s Chairperson and Managing Director, Smt. Parminder Chopra, emphasised the company’s resilience and growth focus despite global uncertainties. She highlighted the strategic restructuring of PFC and REC, a move announced by the Finance Minister in the Union Budget on 1st February 2026. The restructuring aims to create a unified institution that will enhance scale, capital efficiency, and financing capabilities in India’s power sector.
The merger process has commenced, with both PFC and REC boards granting in-principle approval. Legal and transaction advisors, merchant bankers, and registered valuers have been appointed to facilitate the merger, which is targeted for completion by 1st April 2027, subject to regulatory approvals.
PFC’s standalone performance for FY2026 also demonstrates robust financial health, with a capital to risk-weighted assets ratio (CRAR) of 23.44% and Tier-1 capital at 21.93%, providing a solid foundation for future growth. The company’s net worth has surpassed ₹1 lakh crore, reflecting a 13% year-on-year growth.
In terms of shareholder returns, the Board has proposed a final dividend of ₹3.95 per share, bringing the total dividend for the fiscal year to ₹18.55 per share, pending approval at the Annual General Meeting.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).