HDFC Bank Limited
NSE: HDFCBANK
Financial Services · Banks - Regional
₹704.90 last close on 12 Oct 2026 −0.33%
Research updated
Power Finance Corporation Ltd.
NSE: PFCFinancial ServicesCredit Services
- Last close
- ₹337.90
- Day change
- +₹10.10 (+3.08%)vs
- Market cap
- ₹1.12 lakh crIndian rupees
- Research updated
- 1 report
About Power Finance Corporation
Power Finance Corporation Ltd. is a leading financial service company that caters primarily to the power sector in India. As a non-banking financial corporation, its primary function is to provide fund and non-fund based financial assistance to power sector projects across the country. Established in 1986, the corporation plays a pivotal role in the financial backbone of India's energy infrastructure, supporting generation, transmission, and distribution initiatives. Power Finance Corporation Ltd. offers a broad array of financial products, including project term loans, lease financing, and consultancy services. Its influence extends across various segments of the energy sector, impacting thermal, hydro, and renewable energy projects. In doing so, it significantly contributes to the enhancement of India's power generation capacity and aids in achieving national energy security goals. Given its strategic importance to the power infrastructure in India, Power Finance Corporation Ltd. operates under the administrative control of the Ministry of Power, ensuring alignment with governmental policies on energy development and sustainability.
- Sector
- Financial Services
- Industry
- Credit Services
- Listing
- NSE: PFC
- Chief executive
- Ms. Parminder Chopra
- Employees
- 552
- Headquarters
- New Delhi, India
- ISIN
- INE134E01011
- Website
- pfcindia.com
Public research · Report of
Business model & financial foundation
PFC (NSE: PFC), Infrastructure finance - power sector term lending (NBFC-IFC, Government-owned, NBFC Upper Layer from Aug 2026): revenue of ₹1,15,444 crore in FY26 (+8.4% on FY25) and net profit of ₹25,901 crore.
- Revenue, FY26 (₹ crore)
- 1,15,444
- consolidated
- Revenue growth, FY26
- +8.4%
- on FY25
- Net profit, FY26 (₹ crore)
- 25,901
- to owners
- Return on equity, FY26
- 15.8%
- on average equity
- Market capitalisation (₹ crore)
- 1,13,771
- at the close of 12 Oct 2026
Company profile
Power Finance Corporation is a Maharatna Government of India NBFC that lends to the Indian power sector — generation (conventional and renewable), transmission and distribution utilities, largely state-owned — plus infrastructure and logistics. With its 52.63% subsidiary REC it runs India's largest NBFC group, with a consolidated loan book of Rs 11.60 lakh crore at 30 June 2026. It funds itself with AAA domestic bonds, bank loans and foreign currency borrowings, and earns a spread of about 2.5%. REC is to be merged into PFC from 1 April 2027.
| Item | Value |
|---|---|
| Legal name | Power Finance Corporation Limited |
| Exchange and ticker | NSE: PFC; BSE: 532810 |
| ISIN | INE134E01011 |
| Sector | Financial Services |
| Industry | Infrastructure finance - power sector term lending (NBFC-IFC, Government-owned, NBFC Upper Layer from Aug 2026) |
| Headquarters | New Delhi, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | Thakur, Vaidyanath Aiyar & Co. and Mehra Goel & Co. (joint statutory auditors, appointed by C&AG) |
| Market capitalisation | ₹1,13,771 crore (12 Oct 2026) |
| Shares outstanding | 330.01 crore shares (FY26) |
| Price | ₹327.8 (close, 12 Oct 2026) |
| 52-week range | ₹313.4 - ₹486.5 (to 12 Oct 2026) |
| Website | https://www.pfcindia.co.in |
Corporate structure and shareholding
Parent: Government of India (President of India, 55.99%).
| Entity | Holding | Business |
|---|---|---|
| REC Limited | 52.63% | Listed power-sector NBFC (NSE: RECLTD); to be merged into PFC at 88 PFC shares per 100 REC shares |
| PFC Consulting Limited | 100% | Consultancy and bid-process coordinator for transmission SPVs |
| PFC Infra Finance IFSC Limited | 100% | Infrastructure lending from GIFT City IFSC |
Associates: Ultra Mega Power Project SPVs (held for transfer). REC has 263.32 cr shares; PFC holds ~138.6 cr (derived).
| Shareholding (% of shares) | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoter | 55.99% | 55.99% | 55.99% | 55.99% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 18.84% | 18.33% | 19.64% | 20.54% |
| Domestic institutions | 16.03% | 15.48% | 15.05% | 14.51% |
| of which mutual funds | 10.58% | 10.09% | 9.29% | 9.34% |
| Retail | 5.85% | 6.57% | 5.92% | 5.67% |
| Other | 3.29% | 3.63% | 3.40% | 3.29% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
PFC is the Government of India's power-sector lender and, through its 52.63% stake in REC, the core of India's largest NBFC group: consolidated loan assets of Rs 11,60,133 cr at 30 Jun 2026. Standalone, 77% of the Rs 5,70,045 cr book is to government (state generation, transmission and distribution utilities), 23% private; renewables are 15%. It borrows through AAA domestic bonds (56% of standalone borrowings), bank term loans (19%) and foreign currency borrowings (21%, USD 10.6bn equivalent, ~97% hedged) and earns a spread of ~2.5% on a ~9.6-10% yield. It controls pricing and credit selection; it does not control state-utility payment behaviour, bank competition for refinancing, or the rate cycle. A board-approved scheme merges REC into PFC at 88 PFC shares per 100 REC shares from 1 Apr 2027.
| Peer | Why the dossier compares them |
|---|---|
| REC Limited (RECLTD) | Same business and regulator, 52.63%-owned subsidiary, merger counterparty |
| Indian Railway Finance Corporation (IRFC) | Government-owned NBFC-IFC funding a single sector, NBFC-UL |
| Indian Renewable Energy Development Agency (IREDA) | Government-owned power/renewable lender competing in RE financing |
| Housing and Urban Development Corporation (HUDCO) | Government-owned infrastructure lender to state entities, NBFC-UL |
| State Bank of India (SBI) | Largest bank, main refinancer and competitor for state-utility and power loans |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations (total) | 30,237 | 27,517 | 91,097 | 1,06,502 | 1,15,444 |
| Other operating costs (vendor classification) * | 690.1 | 751.5 | 948.5 | 1,068 | 1,285 |
| EBITDA (vendor classification) * | 1,12,408 | ||||
| EBIT * | 1,12,265 | ||||
| Profit before tax | 23,382 | 26,496 | 33,588 | 38,632 | 42,850 |
| Total tax expense | 4,614 | 5,317 | 7,127 | 8,118 | 9,224 |
| Profit for the period | 18,768 | 21,179 | 26,461 | 30,514 | 33,625 |
| Diluted EPS (consolidated) (₹) | 42.46 | 48.15 | 59.88 | 69.67 | 78.49 |
| Interest income | 90,085 | 1,05,001 | 1,12,961 | ||
| Finance costs | 57,962 | 64,644 | 69,415 | ||
| Net interest income | 32,123 | 40,357 | 43,546 | ||
| Non-interest income incl. other income | 1,089 | 1,598 | 2,565 | ||
| Operating expenses | 1,586 | 1,748 | 1,986 | ||
| Impairment on financial instruments | -1,551 | 1,479 | -1,585 | ||
| Exceptional items (charge) | 0.00 | 0.00 | 18.3 | ||
| Share of profit of JV/associates | -0.18 | -0.25 | -0.02 | ||
| Profit attributable to owners of PFC | 19,761 | 22,991 | 25,901 | ||
| Profit attributable to NCI | 6,700 | 7,524 | 7,724 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity incl. NCI | 96,275 | 1,11,981 | 1,34,289 | 1,55,155 | 1,73,441 |
| Debt securities + borrowings + subordinated liabilities | 6,89,972 | 7,80,641 | 8,61,961 | 9,71,758 | 10,12,503 |
| Cash and cash equivalents * | 5,289 | 415.7 | 686.1 | 1,038 | 2,737 |
| Trade payables * | 49.8 | 64.3 | 113.7 | 152.2 | 210.6 |
| Net property, plant and equipment * | 56.7 | 60.9 | 68.2 | 72.6 | 99.3 |
| Capital work in progress * | 392.5 | 400.6 | 679.6 | 1,453 | 1,723 |
| Total assets * | 10,38,877 | 11,78,087 | 12,44,579 | ||
| Consolidated loan assets, gross principal outstanding | 9,90,824 | 11,09,996 | 11,63,768 | ||
| Equity attributable to owners (share capital + other equity) | 1,01,147 | 1,17,738 | 1,32,861 | ||
| Non-controlling interest | 33,142 | 37,417 | 40,580 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operations * | 18,702 | 25,151 | 33,510 | 37,747 | -4,505 |
| Free cash flow (vendor definition) * | 4,603 | -74,840 | -98,144 | -93,110 | -4,842 |
| Dividends paid (the provider's sign: an outflow is negative) * | -4,508 | -4,118 | -6,151 | -8,144 | -8,886 |
| Capital expenditure (the provider's sign: an outflow is negative) * | -300.5 | -122.5 | -323.1 | -840.5 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding * | 330.01 | 330.01 | 330.01 | 330.01 | 330.01 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations (total) | 25,722 | 26,798 | 29,265 | 28,539 | 28,890 | 29,095 | 28,920 | 28,527 |
| Other operating costs (vendor classification) * | 297.4 | 336.8 | 187.4 | 227.2 | 244.9 | 280.6 | 563.4 | 272.4 |
| EBITDA (vendor classification) * | 27,546 | 28,416 | 28,536 | 28,805 | ||||
| EBIT * | 27,372 | 28,074 | 28,425 | 28,511 | ||||
| Profit before tax | 9,368 | 9,816 | 10,554 | 11,199 | 10,057 | 10,502 | 11,092 | 11,260 |
| Total tax expense | 2,153 | 2,057 | 2,196 | 2,218 | 2,223 | 2,290 | 2,494 | 2,262 |
| Profit for the period | 7,215 | 7,760 | 8,358 | 8,981 | 7,834 | 8,212 | 8,598 | 8,998 |
| Diluted EPS (consolidated) (₹) | 16.07 | 17.66 | 19.14 | 20.81 | 17.40 | 19.07 | 21.21 | 21.25 |
| Interest income | 25,398 | 26,400 | 28,676 | 28,258 | 28,069 | 28,468 | 28,166 | 27,947 |
| Finance costs | 16,006 | 16,560 | 16,567 | 17,196 | 17,314 | 17,572 | 17,333 | 17,250 |
| Net interest income | 9,392 | 9,841 | 12,109 | 11,061 | 10,756 | 10,896 | 10,833 | 10,696 |
| Non-interest income incl. other income | 356.5 | 421.6 | 609.3 | 371.3 | 831.8 | 672.5 | 690.3 | 616.3 |
| Operating expenses | 448.4 | 484.7 | 507.4 | 398.3 | 412.0 | 448.6 | 726.8 | 462.1 |
| Impairment on financial instruments | -262.3 | -8.92 | 1,221 | -1,292 | 381.7 | 118.8 | -793.8 | -1,523 |
| Exceptional items (charge) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 18.3 | 0.00 | 0.00 |
| Share of profit of JV/associates | 0.00 | 0.01 | -0.26 | 0.00 | 0.00 | 0.00 | -0.02 | 0.00 |
| Profit attributable to owners of PFC | 5,302 | 5,829 | 6,316 | 6,866 | 5,743 | 6,292 | 6,999 | 7,012 |
| Profit attributable to NCI | 1,912 | 1,931 | 2,041 | 2,115 | 2,091 | 1,919 | 1,599 | 1,986 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 12.8% | -9.0% | 231.1% | 16.9% | 8.4% |
| Net margin | 21.7% | 21.6% | 22.4% | ||
| Return on equity | 16.0% | 15.9% | 15.8% | ||
| Return on assets | 1.9% | 2.1% | 2.1% | ||
| Dividend payout | 31.1% | 35.4% | 34.3% | ||
| EPS, diluted (₹) | 42.46 | 48.15 | 59.88 | 69.67 | 78.49 |
| Book value per share (₹) | 291.7 | 339.3 | 406.9 | 470.2 | 525.6 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS (consolidated)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 12 Oct 2026); market data at the close of 12 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Power Finance Corporation includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Power Finance Corporation
- Research reportLatest
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Prices are the last close on the NSE, 12 Oct 2026. Research from Mool’s report of 12 Oct 2026; page updated 13 Oct 2026.
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