Power Finance Corporation Ltd

- Power Finance Corporation (PFC) is focused on financing growth across multiple segments within the power sector rather than a single area. - Key strategic investment areas include renewable energy, thermal power capacity addition, and nuclear generation expansion. - The government plans to add 80 GW of thermal generation capacity and 100 GW of nuclear capacity by 2047, representing medium-to-long-term financing opportunities for PFC. - On renewables, integrated projects such as solar-wind hybrids coupled with battery or pumped energy storage are emphasized, with government mandates for energy storage systems enhancing project viability. - PFC is committed to supporting emerging technologies in energy storage, mirroring the early support for solar PV projects, to ensure sustainable growth. - Infrastructure funding will continue gradually, focusing on realistic, resilient, and robust loan growth. - The PM Surya Ghar Mufti Bijli Yojana aims to add 27 GW rooftop solar capacity by 2027, contributing to strategic renewable investments. - Continued support for power distribution schemes such as RDSS and RBPF is expected to drive disbursements and growth.

- PFC expects loan growth of 10-11% for FY26, moderating from prior guidance of 12-13%, due to expanded loan book base. - Growth will be driven by multiple segments, primarily power distribution (55% of disbursements) and renewable energy (17%). - Renewable energy capacities, including solar and wind, are increasing, with total renewable installed capacity at around 220 GW (45% of total capacity). - The government's schemes like RDSS and new measures supporting distribution sector will be key growth drivers. - Financing opportunities are expected in thermal capacity addition (80 GW planned by government) and nuclear expansion (100 GW by 2047). - Growth is planned to be realistic, resilient, and robust, focusing on sustainable long-term performance and maintaining asset quality. - PFC remains focused on emerging technologies in renewables, including integrated energy storage, to support future growth.

- PFC expects loan growth of 10-11% in FY26, reflecting a gradual but realistic and resilient growth approach. - For FY25, PFC posted a consolidated PAT of Rs. 30,514 crore, a 15% increase over FY24. - The company aims to maintain a spread guidance around 2.5% for FY26, signaling stable net interest margins. - Asset quality remains strong, with net NPA ratio reduced to 0.39%, supporting sustained profitability. - Growth drivers include continuing investments in renewable energy, power distribution, and upcoming thermal & nuclear capacity financing. - Dividend payouts grew with Rs. 15.80 per share declared for FY25, reflecting confidence in continued earnings growth. - Overall, PFC is focused on steady bottom-line growth by balancing risk, maintaining robust asset quality, and capitalizing on India’s energy transition.

- As of FY25, Power Finance Corporation (PFC) had a strong sanction pipeline, with sanctions around ₹2.8 lakh crore, slightly higher than ₹2.5 lakh crore reported in Q3 FY25. - The sanctions are primarily driven by renewable energy projects, refinancing, and distribution sectors. - The majority of sanctions now come from numerous smaller renewable projects with lower capital expenditure compared to the earlier large thermal projects. - Disbursements have been strong, with 55% towards distribution and 17% towards renewable energy during the current financial year. - Movement from sanction to disbursement has slowed compared to a decade ago due to more project approvals and operational complexities. - Future disbursement growth may moderate slightly due to completion of some major schemes and sectoral challenges like land acquisition and PPA issues. - The company expects steady but moderated loan growth of 10-11% in FY26, supported by continued government focus on power infrastructure.

- In FY25, PFC successfully raised funds amounting to ₹1.11 lakh crore. - Approximately 76% of fundraising came from domestic sources; 24% from foreign currency borrowings. - The company maintains a well-diversified funding portfolio, with active treasury management to hedge forex risks (95% portfolio hedged). - Fundraising strategy includes primarily bond market borrowings with an average liability period of 4-4.5 years. - No specific mention of new or upcoming equity raising plans was highlighted. - Going forward, fresh borrowings will be aligned with current market rates as older borrowings mature (~25% repaid annually). - PFC expects to continue raising funds through a mix of domestic and foreign currency debt to support growing loan disbursements while managing cost of funds effectively.