Power Finance Corporation's Q1 FY26 Results and Interim Dividend Declaration

Power Finance Corporation's Q1 FY26 Results and Interim Dividend Declaration​

Power Finance Corporation Limited (PFC) announced its un-audited financial results for the quarter ending June 30, 2026, and declared an interim dividend. The company also provided updates on its merger with REC Limited and detailed performance metrics across all key operational areas.

Financial Performance Highlights (Standalone)​

The Board of Directors of Power Finance Corporation Ltd., in a meeting held on August 7, 2026, considered and approved the un-audited financial results for the quarter ended June 30, 2026.

Key takeaways from the standalone results include:

• Total Income: Rs 13,994.90 crore (up from Rs 13,776.64 crore in the prior year).
• Total Expenses: Rs 8,081.81 crore.
• Profit Before Tax: Rs 5,913.09 crore.
• Net Profit After Tax: Rs 4,745.40 crore.
• Earnings Per Share (Basic & Diluted): Rs 14.38 per equity share.

The company also declared an interim dividend of Rs 3.90/- (Rupees Three Paisa Ninety only) per equity share, which amounts to 39% of the face value and is applicable for FY 2026-27. The 'Record Date' for this interim dividend was set as August 27, 2026, with payment scheduled on or before September 6, 2026.

Consolidated Results and Dividend​

For the consolidated results of the Group, the total income stood at Rs 28,563.17 crore, with a net profit after tax of Rs 8,997.92 crore for the quarter. The company declared first interim dividend @ 29'/. on the paid-up equity share capital (i.e., Rs 3.90/- per equity share) for FY 2026-27.

Merger Update​

PFC confirmed that its Board of Directors approved a Draft Scheme of merger by absorption involving Power Finance Corporation Limited (the Transferee Company) and REC Limited (the Transferor Company).
The key terms of the draft scheme include:

• Share Exchange Ratio: 88 equity shares of PFC for every 100 equity shares of REC.
• Appointed Date: April 01, 2027.

The merger is subject to obtaining requisite approvals from statutory and regulatory authorities, shareholders, and creditors.

Financial Health Metrics (Standalone)​

A review of the Standalone Balance Sheet as of June 30, 2026, indicates strong operational indicators:

• Net Worth: Rs 1,08,547.95 crore.
• Debt to Equity Ratio: 4.34 times.
• Operating Margin: 42.24%.
• Net Profit Margin: 33.91%.

The company maintained a security cover of 1.02 times for all secured non-convertible debt securities.

Credit Impairment Details (PFC and REC)​

Impairment Loss Allowance (ILA) on loan assets was provided in accordance with the Board approved Expected Credit Loss (ECL) policy and based on a report from an independent agency appointed by the respective companies.

Operational Segment Reporting and Financial Management​

The company confirmed that its operations comprise only one business segment: lending to the power, logistics, and infrastructure sector.

Investments:

• Total investments stand at Rs 21,239.26 crore as of June 30, 2026.
• These include substantial holdings in subsidiaries and associates (Rs 15,000.65 crore).

PFC reported a conservative stance on its financial liabilities, with the total debt securities standing at Rs 3,28,270.91 crore as of June 30, 2026.

Financial Statements Overview (Consolidated)​

The Consolidated Balance Sheet reports total assets at Rs 12,46,149.52 crore, with total liabilities and equity standing at the same figure. The financial reports confirm that the company's business model is centered on generating cash flows from its lending portfolio across the power, logistics, and infrastructure sectors.

The Group’s financial statements were prepared in accordance with Indian Accounting Standard 34 ('Interim Financial Reporting').

PFC Stock Price Movement​

On Friday, Power Finance Corporation Limited shares edged higher to close at ₹420.00, gaining 0.48% in the market session. The stock saw robust activity with 4.42 million shares traded during the day.