PTC India Financial Services posted a net profit after tax of ₹319.36 crore for FY2025-26, a 47.14% jump from ₹217.05 crore in FY2024-25, driven primarily by a sharp reduction in impairment costs on its loan portfolio.

Financial Performance Overview

Total income declined 18.77% to ₹518.25 crore in FY2025-26 from ₹638.00 crore in FY2024-25, largely reflecting a contraction in the loan book. However, finance costs fell 30.08% to ₹224.49 crore from ₹321.06 crore, significantly cushioning the revenue decline. Total comprehensive income rose 48.41% to ₹319.70 crore from ₹215.42 crore.

The following table summarises the key financial highlights on both standalone and consolidated basis:

Note: Standalone and consolidated figures are identical as the company has no subsidiaries.

Key Operational Metrics

EBITDA increased 2.55% to ₹621.62 crore from ₹606.14 crore. Other expenses reduced 12.99% to ₹20.90 crore from ₹24.02 crore. Impairment on financial instruments recorded a reversal of ₹(151.03) crore in FY2025-26 compared to ₹(11.06) crore in FY2024-25, which was the primary driver of profit growth.

The spread on the earning portfolio (Stage I and II) declined to 1.33% in FY2025-26 from 1.92% in FY2024-25. The Net Interest Margin on Stage I and II earning assets increased slightly to 4.49% from 4.25% in the previous year.

Profit before tax stood at ₹389.70 crore in FY2025-26 versus ₹278.52 crore in FY2024-25. Basic and diluted earnings per share improved to ₹4.97 from ₹3.38.

Portfolio Quality and Capital Adequacy

Portfolio quality improved significantly during the year. Gross Stage III loans decreased from ₹711 crore in FY2024-25 to ₹190.03 crore in FY2025-26. Net NPAs declined from ₹117 crore to ₹46.98 crore. No new NPAs were reported in FY2025-26.

Disbursements rose to ₹1,235 crore in FY2025-26 from ₹916 crore in FY2024-25, a growth of approximately 35%.

The Debt/Equity ratio improved to 0.57 from 1.03 in FY2024-25. The Capital Adequacy Ratio stood at 66.63% as on March 31, 2026, compared to 59.65% as on March 31, 2025. Net Owned Funds aggregated to ₹2,789.89 crore and total Capital Funds to ₹2,803.80 crore as at March 31, 2026.

Reserves and Dividend

Out of profits earned during FY2025-26, the company transferred ₹63.87 crore to Statutory Reserve, bringing the cumulative statutory reserve to ₹556.33 crore. The Board of Directors has not recommended any dividend for FY2025-26.

Board and Governance Changes

Several changes occurred in the Board composition during FY2025-26:

• Shri Pankaj Goel ceased as Nominee Director with effect from June 10, 2025
• Shri Sanjeev Kumar was appointed as Director (Operations) with effect from June 10, 2025
• Smt. Seema Bahuguna, Shri Naveen Bhushan Gupta, and Smt. PV Bharathi resigned as Independent Directors with effect from September 26, 2025
• Smt. Mini Ipe was appointed as Independent Director with effect from October 5, 2025
• Smt. Rashmi Verma was appointed as Independent Director with effect from November 24, 2025
• Shri Pikkili Ramana Murthy was appointed as Independent Director with effect from December 19, 2025

Subsequent to the financial year end, Shri Balaji Rangachari resigned as MD&CEO effective June 30, 2026. Shri Rajiv Malhotra was appointed as Additional Director on April 8, 2026 and re-designated as MD&CEO (Addl. Charge) effective July 1, 2026.

Dr. Manoj Kumar Jhawar, Non-Executive Chairman (Nominee of PTC India Limited), retires by rotation at the 20th Annual General Meeting scheduled for September 24, 2026, and is eligible for re-appointment.

AGM and E-Voting Details

The 20th Annual General Meeting is scheduled to be held on Thursday, September 24, 2026 at 12:00 Noon (IST) through Video Conferencing/Other Audio-Visual Means.

CSR and Other Disclosures

Against a CSR obligation of ₹507.14 lakh for FY2025-26, the company spent ₹186.38 lakh. An amount of ₹319.49 lakh was transferred to the Unspent CSR Account for ongoing projects, and ₹1.27 lakh was transferred to the Clean Ganga Fund.

During FY2025-26, the company transferred 64,630 equity shares and ₹2,86,323 as unclaimed dividend to the IEPF Authority. Interest expenditure in foreign currency stood at ₹0.38 crore, down from ₹2.31 crore in the previous year, while foreign currency borrowing repayments totalled ₹12.54 crore compared to ₹16.72 crore in the previous year.

As of March 31, 2026, the company's infrastructure loan exposure was approximately 56.83% of total assets, below the 75% minimum threshold prescribed for NBFC-IFC classification. The company has obtained an extension from the RBI until September 30, 2026 to achieve compliance.

PTC India Financial Services Limited aims to reach an asset under management (AUM) of ₹5,000 crore by the end of FY27, driven by a sharp acceleration in loan sanctions. While Q1FY27 net profit fell 70.5% to ₹40.24 crore due to lower interest income, management disclosed that loan sanctions in July 2026 alone reached ₹1,200 crore—the highest in 13 quarters—signaling a potential turnaround after a muted start to the fiscal year.

The Board of Directors approved the unaudited financial results on July 28, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Ravi Rajan & Co. LLP. The company also submitted a Security Cover Certificate under Regulation 54 of the SEBI Listing Regulations, confirming its long-term infrastructure non-convertible bonds exceed the required security coverage ratio of 1.00 times.

Financial Performance Breakdown

Interest income, the core revenue driver, decreased to ₹87.21 crore in Q1FY27 from ₹131.52 crore in Q1FY26. Fee and commission income also contracted to ₹1.40 crore from ₹2.59 crore. Conversely, net gain on fair value changes improved significantly to ₹13.89 crore, up from ₹6.61 crore in the prior year quarter. Sale of power revenue remained relatively stable at ₹0.81 crore. The following table summarises the key revenue line items:

On the expense side, finance costs reduced to ₹38.50 crore from ₹65.34 crore in Q1FY26. Impairment on financial instruments showed a credit of ₹3.75 crore, compared to a credit of ₹81.59 crore in the same period last year. Employee benefit expenses rose to ₹6.65 crore from ₹5.33 crore. Total tax expense was ₹14.01 crore, comprising current tax of ₹12.09 crore and deferred tax charge of ₹1.92 crore.

Regulatory Compliance and Asset Quality

A material disclosure in the filing highlights that as of June 30, 2026, PTC India Financial Services did not comply with the minimum 75% infrastructure exposure requirement mandated for NBFC-IFC classification. The company has informed the RBI and is undertaking measures to restore compliance within the stipulated timeline ending September 30, 2026. This non-compliance poses a potential risk to its specialized classification and associated regulatory benefits if not rectified promptly.

Asset quality metrics showed improvement in absolute terms, with gross Stage III assets reducing to ₹190 crore in Q1FY27 from ₹441 crore in Q1FY26. The Provision Coverage Ratio for Stage III assets improved to 75% in Q1FY27 from 62% in Q1FY26. The gross Stage 3 ratio stood at 6.45% and the net Stage 3 ratio at 1.68%. The debt-equity ratio was 0.49, while the total debts to total assets ratio was 32.07%. The company's net worth was reported at ₹3,120.12 crore. Regarding project finance, the number of projects under implementation increased to four accounts with a total outstanding of ₹309.93 crore, up from one account worth ₹236.55 crore at the beginning of the quarter. Loan disbursements totaled ₹117.25 crore in Q1FY27, down from ₹138 crore in Q1FY26.

Operational Momentum and Strategy

Management attributed the low Q1FY27 disbursements to phased infrastructure project timelines and leadership transition delays. Sanjeev Kumar, Director Operations, clarified that expected disbursements of approximately ₹1,000 crore were delayed due to construction holds by borrowers in sectors like oil and gas. However, he noted that sanctions have accelerated, with ₹1,200 crore sanctioned in July 2026 alone. The company has paused its FI and SME book to focus exclusively on infrastructure financing across private sector, PSU, and government entities.

What the Numbers Show

The divergence between revenue decline and margin stability reflects a shift in income composition rather than pure operational contraction. While interest income—the core lending business—dropped nearly 34%, the significant rise in net gains on fair value changes (+110.1%) partially offset this decline, indicating that mark-to-market gains played a larger role in supporting profitability in Q1FY27 compared to Q1FY26. The reduction in finance costs also helped preserve the operating margin at 52.51%, though the net profit margin compressed to 38.95% from 96.3% in the prior year, driven by the base effect of higher impairment credits in Q1FY26. The table below captures the key profitability and balance sheet ratios: