Power Finance Corporation Limited — Investor Meet, 28-05-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Power Finance Corporation has announced a board meeting on the financial results for the quarter and half-year.

PFC reported a robust FY25 with consolidated PAT of Rs. 30,514 Cr (+15% YoY) and a loan book exceeding Rs. 11 lakh Cr (+12% YoY). Standalone profit rose 21% to Rs. 17,352 Cr, supported by 24% net interest income growth and provision reversals. Asset quality improved sharply, with net NPA ratio down to 0.38%.

Loan growth was driven by distribution (55%) and renewables (17%), with renewables portfolio up 35% to Rs. 81,031 Cr, reinforcing PFC’s leadership in renewable lending. Management flagged slower DISCOM disbursements and moderated loan growth guidance to 10-11% for FY26 amid sector challenges.

Stable spreads (~2.5%), effective forex hedging (95% coverage), and strong provisioning (~80% on Stage 3 assets) underpin financial health. Project resolutions improved asset quality, while new energy segments offer future growth avenues.

Management appeared confident navigating sector hurdles like delayed PPAs and highlighted shifts in loan mix favoring private renewables. Margin impact from falling repo rates is expected to be limited. Overall, sentiment is optimistic on sustained earnings growth, stable asset quality, and clean energy alignment.