PFC's net profit rises 9% to Rs 7,834.39 crore in Q2

New Delhi: State-owned Power Finance Corporation (PFC) on Friday posted a nearly 9 percent rise in its consolidated net profit to Rs 7,834.39 crore in the September quarter compared to a year ago, mainly on the back of higher revenues.

The company had a consolidated net profit of Rs 7,214.90 crore in the quarter ended on September 30, 2024, according to a regulatory filing.

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Total income rose to Rs 28,901.22 crore in the quarter against Rs 25,754.73 crore in the same period a year ago.

The board also declared an interim dividend of Rs 3.65 per share, taking the cumulative interim dividend to Rs 7.35 per share.

The company stated that November 26, 2025 (Wednesday) shall be reckoned as the record date for the purpose of ascertaining the eligibility of shareholders for payment of the second interim dividend for FY 2025-26.

In a statement, the company said it registered a 17 percent increase in consolidated Profit After Tax (PAT) to Rs 16,816 crore for H1 FY26 from Rs 14,397 crore a year ago.

Consolidated net worth, including non-controlling interest, increased by 15 percent from Rs 1,45,158 crore as on September 30, 2024, to Rs 1,66,821 crore as on September 30, 2025.

Around 10 percent growth in the Consolidated Loan Asset Book is recorded from Rs 10,39,472 crore as on September 30, 2024, to Rs 11,43,369 crore as on September 2025.

Consolidated Net NPA (bad loans) is at 0.30 percent in H1 FY26 vis-à-vis 0.80 percent in H1 FY25.

Gross NPA also declined significantly by 117 basis points from 2.62 percent in H1 FY25 to 1.45 percent in H1 FY26.

On a standalone basis, the company registered half-yearly PAT of Rs 8,963 crore in H1 FY26 compared to Rs 8,088 crore in H1 FY25, driven by a 23 percent rise in net interest income.

It stated that 14 percent double-digit growth was registered in the loan asset book to Rs 5,61,209 crore as on September 30, 2025, against Rs 4,93,363 crore as on September 30, 2024.

It registered a 32 percent growth in the renewable loan book from Rs 64,277 crore as on September 30, 2024, to Rs 84,679 crore as on September 30, 2025.

It also stated that PFC continues to maintain comfortable capital adequacy levels quarter after quarter.

As on September 30, 2025, Capital to Risk (Weighted) Assets Ratio (CRAR) was 21.62 percent, with Tier 1 capital at 19.89 percent, well above the minimum regulatory requirement, the company said.

It further said there is a 13.5 percent rise in net worth from Rs 85,924 crore as on September 30, 2024, to Rs 97,525 crore as on September 30, 2025.

The net NPA ratio for H1 FY26 was 0.37 percent, the lowest level in the last 10 years.

Gross NPA ratio also saw a significant reduction of 84 basis points from H1 FY25 and was at less than 2 percent, at 1.87 percent.

With a focus on strengthening global partnership and diversifying funding sources, PFC signed milestone agreements - one with Japan Bank for International Cooperation (JBIC) and another with Export Finance Australia (EFA), marking EFA's first financing initiative in India, its Director (Finance) Sandeep Kumar said.

With our strong asset quality coupled with comfortable capital levels, PFC remains well positioned to capitalise on business opportunities and continues to deliver steady performance quarter on quarter, Kumar added.

PFC recorded a double-digit loan asset growth of 14 percent, supported by the highest-ever half-yearly disbursement of Rs 86,000 crore, its Chairman and Managing Director Parminder Chopra said.

PFC continues to maintain its focus on renewable portfolio, registering an impressive 32 percent increase year-on-year, reinforcing our role as a trusted partner in India's energy transition journey, Chopra added.

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