Power Finance Corporation's Q1 FY 2025-26 Quarterly Results

Result Summary

• Power Finance Corporation Ltd reported a 18.4% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 15.7%.
• Its expenses for the quarter were up by 19.6% QoQ and 22.2% YoY.
• The net profit increased 18.9% QoQ and increased 25.1% YoY.
• The earnings per share (EPS) of Power Finance Corporation Ltd stood at 20.8 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Power Finance Corporation Ltd (PFC) is a leading financial institution in India, primarily engaged in providing financial assistance to the power sector. As a non-banking financial company (NBFC), PFC plays a crucial role in the development of the power infrastructure in India. It offers a range of financial products and services, including project term loans, lease financing, and consultancy services. PFC caters to a diverse clientele, including state electricity boards, private power companies, and central power utilities. The company operates within the public sector, with the Government of India holding a significant stake. In recent years, PFC has focused on expanding its lending portfolio and supporting government initiatives to enhance India's power generation and distribution capabilities.

Revenue

For Q1FY26, Power Finance Corporation Ltd reported a total income of ₹28,628.92 crores, marking a substantial increase of 18.4% from the previous quarter (Q4FY25), where the total income was ₹24,176.34 crores. Year-on-year, the total income grew by 15.7% from Q1FY25's figure of ₹24,736.68 crores. This growth in total income indicates a robust performance in the company's revenue-generating activities over the past year and quarter. The increase in total income could be attributed to higher lending volumes or improved interest margins. However, specific drivers of revenue growth are not detailed in the provided data.

Profitability

In Q1FY26, Power Finance Corporation Ltd achieved a profit before tax of ₹11,198.99 crores, which is a 16.7% increase from the ₹9,597.18 crores recorded in Q4FY25. Compared to Q1FY25, there was a notable year-on-year growth of 25.9% from ₹8,893.67 crores. The company's profit after tax stood at ₹8,981.45 crores for Q1FY26, representing an 18.9% quarter-over-quarter increase from Q4FY25's ₹7,556.43 crores and a 25.1% year-over-year growth from ₹7,182.06 crores in Q1FY25. The tax expense for Q1FY26 was ₹2,217.54 crores, an increase from both the previous quarter and the same quarter last year. The earnings per share for Q1FY26 was reported at ₹20.80, marking a 22.4% increase from Q4FY25 and a 23.8% rise from Q1FY25. This data reflects positive trends in profitability metrics over both quarterly and annual periods.

Operating Metrics

The total expenses for Power Finance Corporation Ltd in Q1FY26 were ₹18,721.54 crores, showing a 19.6% increase from Q4FY25's expenses of ₹15,649.84 crores. Year-on-year, total expenses rose by 22.2% from ₹15,314.23 crores in Q1FY25. Despite the increase in expenses, the company maintained a solid growth in profits, suggesting effective cost management or increased efficiency in operations. The rise in expenses could be attributed to higher interest expenses, increased operational costs, or other financial obligations, which are not specified in the financial data provided.