Power Finance (PFC) Q3 24/25 earnings summary

Executive summary

• Consolidated profit after tax for nine months FY 2025 reached ₹22,157 crore, up 17% year-over-year, with standalone net profit at ₹12,243 crore, a 20% increase.

• Consolidated loan asset book grew 12% year-over-year to ₹10,69,436 crore.

• Interim dividend of ₹10.25 per share declared for FY 2025.

• Maintained robust asset quality with gross NPA at 2.30% (consolidated) and 2.68% (standalone), and net NPA below 1%.

• Largest renewable energy financier in India, with renewable loan assets up 28% year-over-year to ₹69,423 crore.

Financial highlights

• Yield at 10.07%, cost of funds at 7.47%, spread at 2.60%, and NIM at 3.65% for nine months FY 2025.

• Consolidated net interest income for 9M'25 was ₹28,239 crore, standalone net interest income at ₹13,430 crore.

• Disbursements for the quarter were ₹34,151 crore; cumulative nine-month disbursement at ₹1,297 crore.

• Annualized EPS at ₹49.47, book value per share at ₹267.76, and price-to-earnings ratio at 9.06 for 9M'25.

• Standalone and consolidated net profit margins for nine months were 32.06% and 28.66%, respectively.

Outlook and guidance

• Guidance maintained for loan growth at 12-14%, with disbursements expected to ramp up in Q4.

• Repayments in Q4 expected to be lower than average, aiding growth targets.

• NIM expected to remain stable despite higher renewable mix, though some impact possible with accelerated loan growth.

• Resolution of KSK Mahanadi loan (₹3,300 crore) in advanced stages, expected to further reduce gross NPA ratio to around 2%.

• Funding secured from JBIC (JPY 120 billion) to support renewable energy portfolio and India's energy transition.