Power Finance (PFC) Q2 25/26 earnings summary

Executive summary

• Consolidated profit after tax for H1 FY26 reached ₹16,816 crore, up 17% year-over-year, with standalone profit at ₹8,963 crore.

• Group loan assets grew 10% year-over-year to ₹11,43,370 crore as of September 30, 2025.

• Standalone loan asset book grew 14% year-over-year to ₹561,210 crore, driven by strong disbursements.

• Net worth increased 15% year-over-year to ₹1,66,821 crore as of September 30, 2025.

• Board declared a second interim dividend of ₹3.65 per share, totaling ₹7.35 per share for FY26.

Financial highlights

• Net interest income for H1 FY26 was ₹21,809 crore (consolidated), up from ₹18,399 crore in H1 FY25; standalone net interest income rose 23% year-over-year to ₹10,759 crore.

• Standalone net profit for Q2 FY26: ₹4,461.94 crore; H1 FY26: ₹8,963.44 crore, up from ₹8,088.32 crore in H1 FY25.

• Highest ever half-yearly disbursement at ₹85,994 crore in H1 FY26, a 30% increase year-over-year.

• Yield for H1 FY26 was 9.98%, with cost of funds at 7.43%; spread and NIM were 2.55% and 3.62%, respectively.

• Basic and diluted EPS (standalone) for H1 FY26: ₹27.16; (consolidated): ₹38.21.

Outlook and guidance

• Loan book growth guidance for FY26 maintained at 10%-11%.

• Management expects to maintain spreads and margins despite increased competition.

• Focus on diversifying funding sources and strengthening global partnerships, including collaboration with Export Finance Australia for a $180 million initiative.

• Continued emphasis on supporting India's clean energy transition and expanding renewable financing.

• No plans for buyback; dividend payout maintained at around 30% of profit after tax.