Power Finance Corporation Limited Earnings Summary — Q4 FY2026

• Net Profit for the quarter reached ₹8,598 crore, a significant improvement from the previous fiscal quarter and a steady growth YoY despite high base.
• Gross NPA levels have plummeted to a historic low of 0.66%, down from 1.64% in the same quarter last year, reflecting intensive recovery efforts.
• Net NPA has been successfully reduced to 0.13%, indicating almost negligible balance sheet stress compared to 0.38% YoY.
• Financing Margin remained robust at 39%, reflecting superior yield management and efficiency in fund deployment despite marginal revenue contraction.
• The acquisition of REC Limited continues to yield operational synergies, with the consolidated entity maintaining a dominant market share in power financing.
• Capital adequacy levels remain significantly above regulatory requirements, supporting the transition toward renewable energy financing.

Management is shifting focus toward India’s energy transition (Renewables) and aggressive NPA resolution. The vision is to leverage the REC merger for balance sheet optimization and operational synergy.

Improving

The dramatic decline in NPAs to near-zero levels (0.13% Net NPA) marks a fundamental improvement in credit quality compared to historical performance.

The company is well-positioned as a backbone of India's power reforms. The pivot to green energy financing and the merger with REC Limited provide a clear pathway for sustainable double-digit growth and stock rerating.