Power Finance Corporation logo

Power Finance Corporation

PFC NSE

Key Fundamentals

LargecapFinancial InstitutionFinancial Services
Market Cap
1.2L Cr
Volatility
Moderate
P/E Ratio
4.48
EBITDA
1.1L Cr
Return on Equity
19.39%
Debt to Equity
7.92
Book Value
₹433.11
EPS
₹62.81
52W High
₹486.5
52W Low
₹329.9

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

4
  • Stock is trading at 0.82 times its book value
  • Stock is providing a good dividend yield of 5.25%.
  • Company has been maintaining a healthy dividend payout of 23.0%
  • Company's working capital requirements have reduced from 19.2 days to 14.8 days

Weaknesses

3
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 10.0% over past five years.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
8.38% lower than 3Y
Net Income Growth
10.19% lower than 3Y
Cash Flow Change
95.12% lower than 3Y
ROE
-1.42% lower than 3Y
ROCE
3.23% higher than 3Y
EBITDA Margin (Avg.)
0.31% higher than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2h ago
AI opinion · based on fundamentals
Risk medium

Power Finance Corporation Ltd trades at a market cap of ₹1,15,058 Cr with a PE of 3.5x and PB of 0.81x, both well below typical financial sector averages. The company has delivered consistent ROE of ~21% over 3, 5, and 10-year periods, though sales growth has been modest at 10% CAGR over five years and the stock has declined 11% over the past year.

Bull Case 8
  • PE ratio of 3.5x is exceptionally low, suggesting the stock is priced at a steep discount relative to its earnings power
  • Price-to-book of 0.81x means the stock trades below its book value, offering a margin of safety on an asset basis
  • Consistent ROE of 21% across 3-year, 5-year, and last-year periods indicates stable and efficient capital deployment
  • Dividend yield of 5.25% is significantly above the broader market average, supported by a 23% payout ratio that leaves room for future increases
  • Compounded profit growth of 18% over 3 years and 17% over 5 years demonstrates sustained earnings momentum
  • Working capital days reduced from 19.2 to 14.8 days, reflecting improved operational efficiency in collections
  • 10-year compounded sales and profit growth of 15% each shows long-term business scalability aligned with India's infrastructure lending theme
  • Stock CAGR of 26% over 5 years and 14% over 10 years indicates strong long-term wealth creation despite recent weakness
Bear Case 8
  • Low interest coverage ratio raises concerns about the company's ability to service its debt obligations comfortably during stress periods
  • Stock has declined 11% over the past 1 year, underperforming the broader market and signaling potential negative sentiment
  • Five-year sales CAGR of just 10% is modest for a lending institution operating in a growing infrastructure economy
  • Possible capitalization of interest costs may be inflating reported asset values and understating true operating expenses
  • TTM sales growth has decelerated to 5%, sharply below the 3-year CAGR of 14%, indicating a slowdown in loan book expansion
  • TTM profit growth of 7% is significantly lower than the 3-year CAGR of 18%, suggesting earnings momentum is fading
  • Debt-to-equity ratio is not disclosed, which limits visibility into the true leverage and balance sheet risk of this infrastructure lender
  • As a government-owned NBFC concentrated in power sector lending, the company carries sectoral concentration risk tied to state discom health and policy changes

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 2h ago
Headwinds 6
  • Morgan Stanley downgrades to equalweight Aug 20

    Morgan Stanley cut PFC from overweight to equalweight on Aug 20, slashing price target 20% to ₹410 from ₹510 and trimming core EPS estimates by 5.5% for FY28 and 7% for FY29. PFC shares fell ~2.9% to ₹363.60 on the day.

  • Loan growth sharply decelerating Aug 20

    PFC loan growth plummeted to 4% YoY in Q1 FY27 from 16% in Q1 FY26, while system bank credit to power sector surged to 23.8% YoY from 7.7%, highlighting a widening competitive gap with banks.

  • NII declining, margins under pressure Aug 20

    PFC's Q1 FY27 net interest income fell 4% YoY to ₹5,233.5 crore. Morgan Stanley flagged a margin-vs-market-share dilemma where competitive pricing limits NII growth.

  • ROE expected to moderate sharply Aug 20

    PFC's core ROE is projected to decline from 20.6% in FY26 to 16.9% in FY27 and 14.3% by FY29, with impaired asset ratios near historical lows leaving little room for recovery-led earnings upgrades.

  • 3-year bond issue withdrawn Aug 20

    PFC withdrew its planned 3-year bond issuance on Aug 20 as investor bids came in at yields higher than acceptable, signaling rising borrowing cost pressures. The 15-year bond was accepted at 7.55% coupon for ₹2,500 crore.

  • Banks reclaiming power lending share Aug 21

    Banks are aggressively returning to power sector lending with structural CASA funding cost advantages, driving system power credit growth to 23.8% YoY while PFC/REC growth stalls at 1-4%.

Positives 4
  • AGM approves FY26 results, dividend Aug 31

    PFC's 40th AGM on Aug 31 approved standalone and consolidated FY26 financials, final dividend payout, and key board appointments including the Finance Director.

  • Merger creates ₹11L Cr loan book Aug 26

    PFC-REC merger blueprint finalised with 88 PFC shares for every 100 REC shares. The combined entity would have a loan book exceeding ₹11 lakh crore, making it one of India's largest power-sector financing institutions.

  • Largest renewable energy financier Aug 21

    PFC holds the position of largest renewable financier with a renewable loan book of ₹1,63,184 crore as of June 30, 2026. Renewable energy focus provides long-term structural growth runway toward India's 500 GW non-fossil target by 2030.

  • Govt retains 51% voting control Aug 26

    The Centre plans to retain 51% voting rights in the merged PFC-REC entity via superior voting rights shares (1 share = 10 votes) and ~63 crore redeemable preference shares, ensuring continued government backing despite ordinary shareholding dropping to ~37%.

Neutral 2
  • Joint statutory auditors appointed Sep 9

    PFC appointed Thakur Vaidyanath Aiyar & Co and Mehra Goel & Co as joint statutory auditors for FY27 under Section 139 of the Companies Act.

  • Fatehgarh II sold for ₹19.11 Cr Aug 29

    PFC transferred its wholly owned SPV Fatehgarh II Transmission Limited to Power Grid Corporation on Aug 28 for ₹19.11 crore, with negligible revenue contribution to the parent.

TL;DR: PFC faces significant near-term headwinds from sharp loan growth deceleration (4% YoY vs 16% a year ago) and intensifying bank competition in power lending, prompting Morgan Stanley's first-ever downgrade with a 20% target cut. The proposed PFC-REC merger creating an ₹11 lakh crore combined loan book is the key strategic response, but execution risks and a 12-24 month timeline limit immediate relief. Fundamentals remain decent with strong asset quality and renewable energy positioning, but the ROE moderation trend (20.6% to projected 14.3% by FY29) and margin-growth tradeoff suggest the stock may grind sideways until loan growth recovers to low double digits.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue
21,009
22,391
23,572
24,141
24,717
25,722
26,798
29,265
28,539
28,890
29,095
28,920
28,527
Expenses
-65
-551
791
-589
310
366
429
2,148
212
1,514
1,031
416
35
Financing Profit
7,404
8,629
7,954
9,577
8,886
9,348
9,807
10,550
11,123
10,062
10,492
11,170
11,242
Fin. Margin %
35%
39%
34%
40%
36%
36%
37%
36%
39%
35%
36%
39%
39%
Other Income
9
13
22
35
20
33
24
20
90
11
27
-63
36
Interest
13,670
14,313
14,827
15,154
15,521
16,008
16,562
16,567
17,204
17,314
17,572
17,333
17,250
Depreciation
12
13
14
15
12
13
15
16
14
15
18
16
18
PBT
7,401
8,629
7,961
9,597
8,894
9,368
9,816
10,554
11,199
10,057
10,502
11,092
11,260
Tax %
19%
23%
21%
21%
19%
23%
21%
21%
20%
22%
22%
22%
20%
Net Profit
5,982
6,628
6,294
7,556
7,182
7,215
7,760
8,358
8,981
7,834
8,212
8,598
8,998
EPS in Rs
13.87
14.65
14.33
17.04
16.8
16.07
17.66
19.14
20.81
17.4
19.07
21.21
21.25
Gross NPA %
3.54%
3.4%
3.13%
3.02%
2.97%
2.62%
2.3%
1.64%
1.47%
1.45%
1.26%
0.66%
0.66%
Net NPA %
1%
0.98%
0.86%
0.85%
0.84%
0.8%
0.73%
0.38%
0.31%
0.3%
0.23%
0.13%
0.13%
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Revenue
24,988
27,861
27,581
48,624
54,106
62,189
71,656
76,262
77,568
91,508
1,06,502
1,15,450
1,15,431
Expenses
1,103
2,042
5,538
6,583
1,696
7,332
7,102
8,215
4,051
-33
3,255
3,171
2,996
Financing Profit
8,429
9,162
5,275
11,752
17,783
14,012
19,871
23,338
26,501
33,573
38,603
42,864
42,966
Fin. Margin %
34%
33%
19%
24%
33%
23%
28%
31%
34%
37%
36%
37%
37%
Other Income
25
25
30
42
94
105
46
79
47
69
85
49
12
Interest
15,456
16,657
16,768
30,289
34,627
40,845
44,684
44,709
47,017
57,968
64,644
69,415
69,470
Depreciation
8
20
41
15
15
24
25
35
52
53
56
63
67
PBT
8,446
9,167
5,264
11,779
17,862
14,093
19,891
23,382
26,496
33,588
38,632
42,850
42,911
Tax %
29%
33%
58%
25%
29%
33%
21%
20%
20%
21%
21%
22%
—
Net Profit
6,004
6,184
2,236
8,797
12,640
9,477
15,716
18,768
21,179
26,461
30,514
33,625
33,642
EPS in Rs
18.19
18.74
6.78
20.27
30.06
21.58
35.6
42.47
48.15
59.88
69.67
78.49
78.93
Div. Payout %
20%
30%
59%
31%
0%
35%
22%
23%
22%
23%
23%
24%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
1,320
1,320
2,640
2,640
2,640
2,640
2,640
2,640
2,640
3,300
3,300
3,300
Reserves
31,091
34,708
34,205
37,194
44,481
46,760
58,127
69,036
81,518
97,847
1,14,438
1,29,561
Borrowing
1,87,795
2,00,660
2,02,993
4,41,151
5,39,488
5,96,561
6,59,682
6,60,476
7,51,158
8,61,961
9,71,758
10,12,503
Other Liabilities
8,705
10,531
19,700
41,546
42,260
48,560
55,257
58,848
60,796
75,770
88,590
99,214
Total Liabilities
2,28,912
2,47,220
2,59,537
5,22,531
6,28,869
6,94,521
7,75,707
7,91,000
8,96,112
10,38,877
11,78,086
12,44,579
Fixed Assets
102
198
296
161
196
238
341
719
782
764
761
755
CWIP
2
47
105
129
199
288
336
53
22
39
88
144
Investments
528
2,230
3,145
5,493
4,604
4,404
3,499
3,774
5,973
10,971
12,792
15,549
Other Assets
2,28,280
2,44,745
2,55,990
5,16,749
6,23,871
6,89,590
7,71,530
7,86,454
8,89,334
10,27,102
11,64,445
12,28,131
Total Assets
2,28,912
2,47,220
2,59,537
5,22,531
6,28,869
6,94,521
7,75,707
7,91,000
8,96,112
10,38,877
11,78,086
12,44,579
Figures in ₹ Crores

Cash Flow

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-21,455
-13,298
1,795
-57,148
-80,252
-42,148
-59,143
4,904
-74,699
-97,820
-92,270
-4,504
Investing
-491
-1,973
-667
1,409
-13,463
-73
1,741
-547
-1,694
-3,409
-2,212
-3,441
Financing
26,916
10,383
1,950
52,018
93,616
43,399
60,424
-8,371
75,518
1,01,261
94,159
9,265
Net Cash Flow
4,970
-4,888
3,079
-3,720
-98
1,179
3,023
-4,014
-874
32
-323
1,319
Free Cash Flow
-21,498
-13,456
1,614
-57,237
-80,351
-42,277
-59,234
4,604
-74,821
-98,143
-93,110
-4,841
CFO/OP
-79
-40
23
-124
-144
-71
-83
15
-94
-100
-82
3
Figures in ₹ Crores

Ratios

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
20%
18%
6%
17%
23%
15%
21%
21%
20%
21%
21%
21%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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Shareholding Pattern

Others1.91%Promot.55.99%Public7.05%DIIs14.51%FIIs20.54%As ofJun 2026

Documents

Frequently Asked Questions about Power Finance Corporation

What does Power Finance Corporation Ltd do?
Power Finance Corporation Limited is a Systemically Important Non-Deposit taking NBFC registered with the RBI as an Infrastructure Finance Company. It is engaged in extending financial assistance to the Indian power sector. [1]
Where is Power Finance Corporation Ltd (PFC) listed?
Power Finance Corporation Ltd trades as PFC on the NSE and under code 532810 on the BSE.
Which sector does Power Finance Corporation Ltd belong to?
Power Finance Corporation Ltd is classified under the Financial Services sector, in the Financial Institution industry.
What is the market capitalisation of Power Finance Corporation Ltd?
Power Finance Corporation Ltd has a market capitalisation of ₹1,15,058 Cr, which places it in the Large Cap band.
What is the PE ratio of Power Finance Corporation Ltd?
Power Finance Corporation Ltd trades at a PE ratio of 4.48, on earnings per share of ₹62.81, against a book value of ₹433.11 per share.
What is the 52-week high and low of Power Finance Corporation Ltd?
Over the last 52 weeks Power Finance Corporation Ltd has traded between ₹329.9 and ₹486.5.
Does Power Finance Corporation Ltd pay dividends?
Power Finance Corporation Ltd has a dividend yield of 1.11%.
What is the Return on Equity (ROE) of Power Finance Corporation Ltd?
Power Finance Corporation Ltd reported a return on equity of 19.39%. Its debt-to-equity ratio is 7.92.

Company Information

Power Finance Corporation Limited is a Systemically Important Non-Deposit taking NBFC registered with the RBI as an Infrastructure Finance Company. It is engaged in extending financial assistance to the Indian power sector. [1]

Website pfcindia.com
CEO Ms. Parminder Chopra
Employees 540
Listed 2007-02-23
Face Value ₹ 10
Issued Size 3,30,01,01,760

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