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.

• 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.

• Interim dividend of ₹3.65 per share declared, totaling ₹7.35 per share for FY26.

Financial highlights

• Net profit for H1 FY26 was ₹8,963 crore, up from ₹8,088 crore in H1 FY25.

• Net interest income grew 23% year-over-year to ₹10,759 crore (standalone) and ₹21,809 crore (consolidated).

• Q2 FY26 standalone net profit stood at ₹4,462 crore.

• 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%; NIM at 3.62%.

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 a $180 million initiative with Export Finance Australia.

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

• Board remains focused on prudent risk management and maintaining strong capital adequacy.