This article first appeared on GuruFocus .
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Consolidated Profit After Tax:INR 16,816 crore, a 17% increase year-on-year.
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Group Loan Assets Book:10% growth year-on-year, reaching INR 1,143,370 crore as of September 30, 2025.
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Consolidated Gross NPA:1.45% for H126.
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Net NPA:0.30% for H126.
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Standalone Loan Asset Book:14% growth, now at INR 561,210 crore.
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Disbursements:INR 86,000 crore, a 30% increase from the previous half-year.
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Net Profit for H126:INR 8,960 crore, compared to INR 8,088 crore in H125.
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Net Profit for Q226:INR 4,462 crore.
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Interim Dividend:INR 3.65 per share, cumulative interim dividend for FY26 at INR 7.35 per share.
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Yield for H126:9.98%.
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Cost of Funds:7.43%.
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Spread and NIM:2.55% and 3.62% respectively.
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CRAR:21.62% with Tier One Capital at 19.89% as of September 30, 2025.
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Outstanding Borrowing:INR 4,774,430 crore, with 20% in foreign currency borrowings.
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Foreign Currency Borrowing:USD 10.4 billion, with 95% hedging for exchange risk.
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Exchange Loss:INR 1,100 crore due to euro-USD exchange rate movement.
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Renewable Sector Financing:INR 84,680 crore as of September 30, 2025.
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Release Date: November 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Power Finance Corp Ltd ( BOM:532810 ) reported a 17% year-on-year increase in consolidated profit after tax, reaching INR 16,816 crore.
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The company's loan asset book grew by 14% in H126, driven by strong disbursements of INR 86,000 crore, a 30% increase from the previous half-year.
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The net NPA ratio is at its lowest level in the last 10 years, standing at 0.37%, indicating improved asset quality.
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Power Finance Corp Ltd ( BOM:532810 ) entered its first cross-border financing deal in Bhutan, marking a significant expansion in its lending business.
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The company declared an interim dividend of INR 3.65 per share, with a cumulative interim dividend for FY26 at INR 7.35 per share, reflecting a commitment to shareholder returns.
Negative Points
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The company experienced an exchange loss of around INR 1,100 crore due to unfavorable euro-USD exchange rate movements.
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There is increased competition in the market from other financial institutions, which could pressure margins and spreads.
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The company faces challenges with prepayments, particularly in the generation segment, which could impact loan book growth.
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There is uncertainty regarding the impact of new RBI guidelines on provisioning and risk weights for infrastructure exposures.
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The company has not received any prepayments from the Kaleshwaram project, which remains in stage 2, indicating potential risk exposure.
Q & A Highlights
Q: Could you provide an update on the Kaleshwaram project and any prepayments received? A: We have not received any prepayments from the Kaleshwaram project, and our exposure is approximately INR 26,000 crore. Normal repayments are occurring, but no prepayment requests have been made by the borrower. - Parminder Chopra, Chairman and Managing Director
Q: There was a mention of a fraud amounting to INR 262 crore in your filings. Could you elaborate on this? A: The fraud pertains to a general exposure that was clarified in the last quarter. - Parminder Chopra, Chairman and Managing Director
Q: Can you explain the impact of foreign exchange losses and the potential for recovery? A: The exchange loss was primarily due to the appreciation of the EUR against the USD. We expect these losses to be reversed gradually if the EUR weakens against the USD, as our loans have long-term maturities. - Parminder Chopra, Chairman and Managing Director
Q: How do you view competition from other infrastructure lenders like IRSC, and how does it affect your growth outlook? A: There is competition from various fronts, including IRSC and others, but there is enough scope for business growth. We aim to maintain our spreads and margins despite the competition. - Parminder Chopra, Chairman and Managing Director
Q: With the current return on equity and growth rates, is there a possibility of increasing dividend payouts or considering a buyback? A: We are maintaining a balance between investor returns and company growth, distributing dividends at around 30% of profit after tax. Currently, there are no plans for a buyback. - Parminder Chopra, Chairman and Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
