PTC India Financial Services Limited (PFS) has reported a significant improvement in its financial performance for the quarter ended September 30, 2025, with profit after tax soaring to ₹88.14 crore, marking a 278% increase from ₹24.02 crore in the same period last year.

Key Financial Highlights

• Quarterly Performance: Profit after tax for Q2 reached ₹88.14 crore, up from ₹24.02 crore year-over-year.
• Half-Year Results: For the six-month period, profit after tax stood at ₹224.77 crore, compared to ₹63.41 crore in the previous year.
• Total Income: The company reported a total income of ₹131.86 crore for the quarter.

Asset Resolution and Upgrades

PFS has made significant strides in resolving non-performing assets:

• Received ₹25.00 crore from NSL Nagapatnam Power and Infratech Limited.
• Recovered ₹115.61 crore from Vento Power Infra Private Limited.
• Upgraded IL&FS Tamilnadu Power Co. Limited to standard category following regulatory approval.

Financial Position

The company maintains a strong financial position:

• Capital Adequacy Ratio: 62.63%
• Net Worth: ₹2,978.16 crore as of September 30, 2025

Debt Profile

PTC India Financial Services' debt-to-equity ratio stands at 0.76, indicating a conservative leverage position. The total debt to total assets ratio is 42.04%, suggesting a balanced approach to financing.

Profitability Metrics

Asset Quality

• Gross Stage 3 Ratio: 5.23%
• Net Stage 3 Ratio: 1.32%

These figures indicate the company's improving asset quality and effective management of non-performing assets.

Conclusion

PTC India Financial Services Limited's strong Q2 results reflect its robust financial management and successful efforts in asset resolution. The substantial increase in profitability, coupled with improvements in asset quality, positions the company well in the infrastructure financing sector.

PTC India Financial Services Ltd. (PFS) finds itself in the spotlight as CEO R Balaji responds to recent board resignations and reaffirms the company's commitment to corporate governance and transformation.

Board Resignations and CEO's Response

PFS recently faced the unexpected resignation of three independent directors, who cited difficulties in functioning impartially. CEO R Balaji, addressing the situation, stated that he was unaware of any issues raised by the departing directors and emphasized that board meetings had proceeded harmoniously.

Balaji highlighted the company's dedication to maintaining one of the most independent boards in the country. He confirmed ongoing communication with the former directors who had raised unspecified concerns. Despite the resignations, four independent directors remain on the board, ensuring continued oversight.

Clarifications on Corporate Governance

In response to queries from stock exchanges, PFS provided detailed clarifications regarding the resignations. The company expressed surprise at the unexpected departures and the reasons cited, noting that no grievances or concerns were raised during the 13th meeting of Independent Directors.

The management emphasized that in all board and committee meetings, independent directors had participated openly and fairly, exercising complete freedom to express their views. PFS stated that at no point did any independent director complain of circumstances preventing them from discharging their duties.

Historical Context and Regulatory Oversight

The recent resignations echo a similar event in January 2022, when three independent directors resigned, alleging violations of corporate governance norms. This led to investigations by the Securities and Exchange Board of India (SEBI), resulting in orders against the then Non-Executive Chairman and MD&CEO. Subsequent appeals and rulings by the Securities Appellate Tribunal (SAT) have addressed some of these issues, with certain matters still pending.

Strengthening Governance and Compliance

In response to past concerns, PFS has taken several steps to strengthen its governance and compliance framework:

1. Reconstitution of the board with adequate independent directors
2. Appointment of new Whole-time Directors, including MD&CEO and CFO
3. Strengthening of the Compliance Function
4. Regular filings and disclosures to stock exchanges, including Secretarial Compliance Reports

Four-Pillar Transformation Strategy

Amidst these governance discussions, CEO Balaji outlined the company's transformation strategy built on four key pillars:

1. Improving systems and processes
2. Building institutional capability
3. Broadening employee talent
4. Creating a more granular book to withstand economic shocks

Balaji noted an increase in non-retail holding, interpreting this as a sign of confidence in the company's transformation plan. He expressed management's continued confidence in ongoing efforts and investor support.

Commitment to Ethical Practices

PFS reaffirmed its commitment to upholding the highest standards of governance, transparency, and ethical business practices. The company stated its intention to continue meeting stakeholder expectations while navigating these challenges.

As PFS works through these governance issues and implements its transformation strategy, stakeholders will be watching closely to see how the company balances its growth ambitions with robust corporate governance practices.