Power Finance Corp Q1 profit grows 25% to Rs 8,981 crore

The company's board declared an interim dividend of Rs 3.70 per share of face value of Rs 10 each for FY26.

Power Finance Corporation (PFC) on Wednesday reported 25 per cent rise in consolidated net profit at Rs 8,981 crore for June quarter 2025-26, mainly on account of higher net interest income.

PFC, a government-owned NBFC, had logged a net profit (profit after tax) of Rs 7,182 crore in April-June 2024-25, the company said in a statement.

In the first quarter, the company's consolidated loan asset book grew 13 per cent to Rs 11,34,347 crore from Rs 10,04,735 crore as on June 30, 2024.

Total income rose to Rs 28,628.92 crore from Rs 24,736.68 crore in the year-ago quarter. Expenses were at Rs 17,429.93 crore as against Rs 15,843.01 crore.

The company's board also declared an interim dividend of Rs 3.70 per share of face value of Rs 10 each for FY26.

Gross NPA declined from 2.97 per cent in Q1FY25 to 1.47 per cent in Q1FY26.

In the quarter, PFC reported a standalone net profit of Rs 4,502 crore, marking 21 per cent Y-o-Y growth, primarily driven by 26 per cent increase in net interest income, Director (Finance) Sandeep Kumar said.

"Our financial position remains resilient, underpinned by a healthy capital adequacy ratio and continued improvement in asset quality," he added.

Chairman and Managing Director Parminder Chopra said the quarter marked the company's highest ever first-quarter disbursements. "We recorded a robust year-on-year growth of 16 per cent, with our renewable energy portfolio growing impressively by 36 per cent." Under Ministry of Power, PFC is a nodal agency for the development of Integrated Power Development Scheme, Ultra Mega Power Projects and Bid Process Coordinator for Independent Transmission Projects.