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.

Power Finance Corporation , a Government of India Undertaking, delivered a strong financial performance in Q4 and for the full financial year ended March 31, 2026. On a standalone basis, total income from operations for Q4 stood at ₹15,318.97 crore compared to ₹14,938.86 crore in the same period last year, while standalone net profit after tax for the quarter rose to ₹6,324.57 crore versus ₹5,108.95 crore year-on-year, surpassing analyst estimates of ₹50B. The Board of Directors, in its meeting held on May 13, 2026, approved the standalone and consolidated audited financial results for the quarter and financial year ended March 31, 2026. The Joint Statutory Auditors have not expressed any modified opinion in their audit reports for the financial year. Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the newspaper publication of the annual audited financial results was scheduled on May 15, 2026.

Q4 Financial Highlights

The latest quarterly results reflect a notable improvement across key financial metrics on both standalone and consolidated bases. The following table presents the Q4 performance:

Full-Year FY26 Performance

For the full financial year ended March 31, 2026, Power Finance Corporation reported robust growth across both standalone and consolidated metrics. Standalone total income from operations grew to ₹58,503.73 crore from ₹53,099.22 crore in the prior year, while standalone net profit after tax increased to ₹20,051.34 crore from ₹17,352.19 crore. On a consolidated basis, total income from operations reached ₹1,15,443.61 crore versus ₹1,06,501.62 crore in the previous year, with consolidated net profit after tax rising to ₹33,625.34 crore from ₹30,514.40 crore.

Key Balance Sheet Metrics

As at March 31, 2026, Power Finance Corporation's standalone net worth stood at ₹1,02,531.94 crore, up from ₹90,936.87 crore a year earlier. The company's loan book reached ₹5,80,115 crore, reinforcing its position as India's largest renewable financier. The standalone debt-equity ratio improved to 4.75 from 5.12, while outstanding debt stood at ₹4,88,516.02 crore versus ₹4,65,763.08 crore in the prior year.

Dividend Declaration

Alongside the results, the Board recommended a final dividend of ₹3.65 per equity share (at 30.5% on paid-up equity share capital of ₹10 each) for FY 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. This is in addition to interim dividends of ₹14.60 per equity share already declared and paid during the year. The final dividend, if approved, will be paid within the statutory period of 30 days from the date of AGM approval. Dividend payments will be made exclusively through electronic mode, as the provision for remitting dividends via physical instruments such as cheques or warrants has been discontinued.

Shareholder Action Required

Shareholders are advised to update their bank account details to enable seamless credit of dividends. For shares held in demat form, shareholders should contact their Depository Participant and register or update bank details in their demat account. For shares held in physical form, shareholders should contact the Company's RTA and register or update their KYC and bank account details in their folio by submitting the requisite documents.

Meeting Details

The Board meeting was held on May 13, 2026. The company also scheduled an Investor Meet on the same day to discuss the annual financial performance with the investor and analyst community. The newspaper publication of the annual audited financial results (standalone and consolidated) for the quarter and year ended March 31, 2026 was scheduled on May 15, 2026.

Source: Power Finance Corporation Ltd / INE134E01011