Power Finance Corporation Ltd Q4 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 31 May 2026 | Finance | Market Cap: ₹1.2L Cr
PFC targets around **10% loan asset growth** in Financial Year 2027, driven by: - Incremental lending on a large existing asset base. PFC targets around 10% loan book growth for FY27, driven by diversified lending across renewable energy, conventional generation (thermal and nuclear), and distribution sectors.
From Power Finance Corporation Ltd's Q4 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹363
Market Cap
₹1.2L Cr
P/E Ratio
4.8
Revenue Rank
Margin Rank
How does Power Finance Corporation Ltd rank in Finance?
Compare Power Finance Corporation Ltd against every Finance company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 3- →PFC targets around **10% loan asset growth** in Financial Year 2027, driven by:
- → - Incremental lending on a large existing asset base.
- → - Diversified opportunities across power sectors including thermal, renewable, nuclear, and distribution.
- → - Emerging opportunities in infrastructure lending and energy storage solutions like battery and pump storage projects.
- →Increasing shift in loan mix from conventional (thermal) to non-fossil fuel (renewable) projects; expected future mix approximately **70% conventional and 30% renewable**.
- →Growth supported by improving DISCOM performance and reduction in AT&C losses.
- →Competitive market with other financial institutions also active but sufficient headroom for growth exists.
- →Continuing focus on short to medium-term loan requirements of distribution companies.
- →Stable funding with diversified borrowing mix supports sustainable growth.
📈 Profitability & Margins
Rank 3- →PFC targets around 10% loan book growth for FY27, driven by diversified lending across renewable energy, conventional generation (thermal and nuclear), and distribution sectors.
- →Net profit for FY26 was INR 20,051 crore, a 16% YoY increase; management expects sustainable growth driven by net interest income and controlled credit costs.
- →Spread guidance for FY27 is 2.40% to 2.50%, reflecting competitive lending rates and cost of funds.
- →Provision reversals and resolution of stressed assets have improved profitability; however, benefit from NPA resolution may moderate going forward.
- →Dividend payout aligned with DIPAM policy at 30% of profits; merged entity post-PFC and REC integration expected to maintain strong financials.
- →ROE outlook is optimistic due to improved asset quality, operational efficiencies, and potential leverage increase (currently around 7.7x-7.8x).
- →Overall, growth in earnings and EPS is expected to be stable, supported by balanced asset growth and prudent risk management.
🏗️ Capital Expenditure Plans
Yes💰 Fundraising & Capital Structure
Yes- →For FY27, Power Finance Corporation (PFC) has taken a borrowing limit approval of INR 1,60,000 crore, reflecting a 10% growth expectation from previous years.
- →Borrowing mix remains diversified with approximately 60% from bond markets, 20% from term loans from banks, and 20% from foreign currency borrowings.
- →Around 65% of borrowings are at fixed rates, providing balance sheet stability amid volatile market conditions.
- →The company's comfortable capital adequacy (CRAR at 23.44%, Tier-1 at 21.93%) and net worth crossing INR 1 lakh crore support capacity for future growth and fundraising.
- →No explicit mention of fresh equity fundraising in the transcript.
- →Provisions for maintaining additional Expected Credit Loss (ECL) as per new RBI norms will be met as required.
- →The merged entity with REC will continue managing borrowings with due consideration to internal limits with banks and capital markets post-merger.
📋 Order Book & Pipeline
No information- →The total unsanctioned (pending) loan book, i.e., sanctioned but not disbursed amount, is broadly estimated to be around INR 2.5 to 3 lakh crores (Page 22).
- →For FY26, sanctions were around INR 2.85 lakh crores (Page 9).
- →Disbursements for FY26 were INR 1.65 lakh crores, which is about one-third of the sanction pool in recent years, indicating a significant spillover in the orderbook (Page 9, 22).
- →The conversion of this unsanctioned book into disbursements is expected over the next 3-4 years, considering project's gestation period (Page 22).
- →Loan growth guidance for FY27 is targeted around 10%, suggesting gradual utilization of the pending sanctions (Page 7, 9, 22).
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were Power Finance Corporation Ltd Q4 FY26 results?
PFC targets around **10% loan asset growth** in Financial Year 2027, driven by: - Incremental lending on a large existing asset base. PFC targets around 10% loan book growth for FY27, driven by diversified lending across renewable energy, conventional generation (thermal and nuclear), and distribution sectors.
What is Power Finance Corporation Ltd share price analysis?
Power Finance Corporation Ltd currently shows a below-average growth signal. The stock trades at a P/E of 4.8 with a market cap of ₹124,084 Cr. Investors should review the full earnings analysis for detailed insights.
Is Power Finance Corporation Ltd planning capital expenditure?
Power Finance Corporation (PFC) is focusing on financing emerging technologies including battery and pump storage projects, having sanctioned around INR 16,000 crores towards these areas, indicating strategic investment in energy storage solutions.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.