Power Finance Corporation Limited Earnings Summary — Q4 FY2026
Power Finance Corporation Achieves Record Asset Quality and Profitability Growth in Q4 FY2026
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 1.4% sequentially in Q1 FY2027.
- Revenue of ₹28,527 Cr is 0.0% higher year-on-year.
- Revenue has compounded at 7.7% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹7,012 Cr is 2.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 10.3% annualised across the period.
- Operating margin stands at 99.9% in Q1 FY2027.
- Operating margin expanded by 62 bps year-on-year.
- Over the last two years operating margin has expanded by 113 bps.
- PBT margin is 39.5%.
- Expense growth of -83.6% remained below revenue growth of 0.0%.
- Operating profit of ₹28,492 Cr is 0.6% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 68/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 28,527 | 28,920 | 29,095 | 28,890 | 28,539 | 29,265 | 26,798 | 25,722 | 24,717 | 24,141 |
| Expenses | Volatile | 35 | 416 | 1,031 | 1,514 | 212 | 2,148 | 429 | 366 | 310 | -589 |
| Operating Profit | Stable | 28,492 | 28,504 | 28,064 | 27,376 | 28,327 | 27,117 | 26,369 | 25,356 | 24,407 | 24,731 |
| Operating Margin | Stable | 99.9% | 98.6% | 96.5% | 94.8% | 99.3% | 92.7% | 98.4% | 98.6% | 98.8% | 102.4% |
| Other Income | Volatile | 36 | -63 | 27 | 11 | 90 | 20 | 24 | 33 | 20 | 35 |
| Interest | Stable | 17,250 | 17,333 | 17,572 | 17,314 | 17,204 | 16,567 | 16,562 | 16,008 | 15,521 | 15,154 |
| Depreciation | Stable | 18 | 16 | 18 | 15 | 14 | 16 | 15 | 13 | 12 | 15 |
| Profit Before Tax | Stable | 11,260 | 11,092 | 10,502 | 10,057 | 11,199 | 10,554 | 9,816 | 9,368 | 8,894 | 9,597 |
| Tax | Stable | 2,262 | 2,494 | 2,290 | 2,223 | 2,218 | 2,196 | 2,057 | 2,153 | 1,712 | 2,041 |
| Net Profit | Stable | 7,012 | 6,999 | 6,292 | 5,743 | 6,866 | 6,316 | 5,829 | 5,302 | 5,543 | 5,624 |
| Net Margin | Stable | 24.6% | 24.2% | 21.6% | 19.9% | 24.1% | 21.6% | 21.8% | 20.6% | 22.4% | 23.3% |
Key Takeaways
- 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 Guidance
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.
Sentiment Shift
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.
Outlook
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.
From the Annual Report (Key Quotes)
“PFC has transformed from a standalone lender into a consolidated financial powerhouse.”
“The company exhibits robust profitability with a Return on Equity (ROE) consistently above 20%.”
“Dramatic improvement in asset quality, reducing Gross NPAs from over 7% to under 2% (now 0.66%).”
Official Quarterly Documents
This summary is AI-generated from Power Finance Corporation Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.