Power Finance Corporation completed the transfer of its wholly owned subsidiary, NERGS III Siang Basin Transmission Limited, to Dineshchandra R. Agrawal Infracon Private Limited on May 26, 2026. The transaction was settled for a consideration of Rs 19,70,61,135 as per the Share Purchase Agreement. The subsidiary was established for the development of the “NERGS-III Siang Basin” project and contributed negligible revenue and net worth during the last financial year.

Transaction Details

The transfer process was finalized on May 26, 2026, with the sale not classified as a slump sale. The consideration was determined in accordance with the guidelines issued by the Ministry of Power, Government of India. The successful bidder, Dineshchandra R. Agrawal Infracon Private Limited, does not belong to the promoter or promoter group of Power Finance Corporation Limited.

Regulatory Disclosures

The transaction does not fall within the purview of related party transactions and was conducted at arm’s length. The disclosure was submitted to the National Stock Exchange of India Limited and BSE Limited on May 27, 2026, by Manish Kumar Agarwal, Company Secretary & Compliance Officer.

Power Finance Corporation has announced its financial results for the year ended March 31, 2026. The company reported its highest ever net profit of INR 20,051 crore, marking a 16% increase year-on-year. This performance was driven by a healthy 13% growth in net interest income and provision reversals of around INR 1,800 crore during the year. The Board has proposed a final dividend of INR 3.95 per share, bringing the total dividend for FY26 to INR 18.55 per share.

Financial Performance

The company's standalone loan book closed at around INR 5.8 lakh crore, reflecting a 7% growth during the year. PFC maintained a strong capital base with a CRAR of 23.44% and Tier-1 capital at 21.93% as of March 31, 2026. The net worth crossed the INR 1 lakh crore milestone, growing by 13% year-on-year. Key financial indicators for the year included a yield of 9.96%, a cost of funds at 7.50%, a spread of 2.46%, and a Net Interest Margin (NIM) of 3.55%.

Asset Quality and Provisions

Asset quality strengthened further with the successful resolution of the Sinnar Thermal Power Project (INR 3,001 crore) and TRN Energy loan (INR 1,139 crore). The net credit impaired asset ratio improved to a new low of 0.15%, while the gross credit impaired asset ratio stood at 1.09%. The company saw provision reversals of approximately INR 1,800 crore, including INR 800 crore from these resolutions and INR 1,000 crore following upgrades in the ratings of 18 power distribution utilities.

Strategic Developments and Outlook

PFC and REC have received in-principle board approval for restructuring via a merger, targeting a merged entity by April 1, 2027. For FY27, PFC targets a loan growth of around 10% and expects spreads to be in the range of 2.40% to 2.50%. The company remains focused on financing renewable energy, storage solutions, and infrastructure projects to support India's power sector growth.