Power Finance Corporation Ltd(PFC)

NSE: PFCBSE: 532810

₹ 316-3.07%refreshed 23 Oct, 03:52 pm ISTMarket cap: ₹ 1.04 L crWebsite: www.pfcindia.comUpdated: 24 Oct 2026

About

Power Finance Corporation (PFC) is a Government of India-owned NBFC set up in 1986 under the Ministry of Power. It mainly finances power projects across generation, transmission, distribution, renewable energy and energy efficiency, and is now also lending to infrastructure and logistics. It describes itself as India's largest power sector financier and its largest renewable financier, with reported FY26 revenue of Rs 115443.61 crore. On a consolidated basis with subsidiary REC, the combined loan book was INR 11.64 lakh crore at end-FY26.^[1][2][3]

Business and products

PFC reports a single business segment: lending to the power, logistics and infrastructure sector (FY26).^[1]
PFC offers long-term, medium-term and short-term loans across the power value chain (FY26).^[1]
As of FY26, its financing also covers battery energy storage, pumped storage, green hydrogen and domestic clean energy manufacturing.^[1]
PFC prices renewable loans 1.0 - 1.5% below its rates for conventional generation projects (FY26).^[1]

Loan book composition

The standalone loan book was about INR 5.8 lakh crore at end-FY26, up 7% YoY. That was below the guided 10 - 11% because banks prepaid loans to refinance commissioned renewable assets.^[3]
The consolidated loan book (PFC + REC) was INR 11.64 lakh crore at end-FY26.^[3]
Infrastructure and logistics loan assets were ₹52,076 crore at March 31, 2026, up from ₹48,448 crore a year earlier (about 7.5% growth). They made up around 9% of the loan mix.^[1]
Non-power infrastructure exposure was 54,188.94 crore EAD as of FY26.^[1]
The private-sector share of the standalone book rose to 23% (INR 1,22,571 crore) at end-FY25, from 19% (INR 91,936 crore) at end-FY24.^[4]
DISCOMs moved from short-tenor RBPF loans (6-month average maturity) to 3 - 7 year medium-term borrowings as of FY26.^[3]

Renewable energy financing

The renewable loan book was 90,135 crore at 31 March 2026, 32% of the generation loan book. It supports nearly 66 GW of installed renewable capacity.^[1]
The consolidated renewable book was INR 1.65 lakh crore at end-FY26.^[3]
As of FY26, PFC had sanctioned about INR 16,000 crore in total for battery storage and pumped storage projects.^[3]

Key operating metrics

NIM was 3.64% in FY25 vs 3.46% in FY24. The interest spread was 2.58% in FY25 vs 2.64% in FY24.^[4]
Yield on earning assets was 10.02% and cost of funds was 7.44% in FY25.^[4]
The standalone net credit-impaired asset ratio fell to 0.15% at end-FY26. 80% of the peak NPA book has been resolved.^[3]
Standalone gross NPA was 1.94% and net NPA 0.39% at end-FY25.^[4]
Provision reversals in FY26 were about INR 1,800 crore.^[3]

Customers and government schemes

Clients include Central and State power utilities, private utilities including IPPs, joint sector utilities, power equipment makers, and infrastructure and logistics companies (FY26).^[1]
PFC sanctioned ₹25,999.60 crore to NPCIL for a nuclear power plant with a total estimated cost of ₹37,142.28 crore (FY26).^[1]
PFC and REC are nodal agencies for the Revamped Distribution Sector Scheme, which had ₹2.83 lakh crore of projects sanctioned as of FY26. The scheme's sunset date was extended to 31.03.2028.^[1]
AT&C losses at DISCOMs fell to 15.04% as of FY26, against the RDSS target of 12 - 15%.^[3]

Planned merger with REC

The restructuring of PFC and REC into a single power-sector financing institution was announced in the Union Budget 2026.^[1]
Under the merger scheme, REC shareholders would receive 88 PFC shares for every 100 REC shares, subject to approvals.^[1]
The merged entity is targeted to exist by 1 April 2027, subject to approvals from MCA, RBI, SEBI, the Cabinet and the President.^[3]

Funding and expansion

PFC is setting up a subsidiary in GIFT CITY to reach global capital markets (FY26).^[1]
PFC secured a JPY 60 billion JBIC loan in 2025.^[1]
PFC secured a USD 180 million ECA-backed facility from Citi, guaranteed by Export Finance Australia (FY26).^[1]
The FY27 target for loan asset growth is about 10% YoY.^[3]

Recent developments

On 28 September 2026, PFC Consulting incorporated Malegaon Power Transmission Limited to develop the 400/220 kV Malegaon (Saundane) substation in Nashik district.^[5]
Pankaj Gupta stepped down as Non-Executive Independent Director on 22 September 2026 when his term ended.^[6]
Sinnar Thermal (INR 3,001 crore exposure) was resolved under NCLT in FY26 with 42% principal recovery.^[3]

Market Cap

₹1,04,283 Cr

High / Low

₹486 / 314

Stock P/E

4.2

Price / Book

0.8

Book Value

₹403

EPS

₹78.5

No. of Shares

330.01 Cr

ROE

20.7%

Debt / Equity

7.62

Sales

₹1,15,444 Cr

Net Profit

₹33,625 Cr

Promoter holding

56.0%

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