Power Finance Corporation (PFC) reported a consolidated net profit of ₹7,012 crore for the first quarter of FY27, marking a 2.12% increase from ₹6,866 crore in the corresponding quarter of the previous financial year. However, the company's net interest income (NII) declined 3.3% year-on-year to ₹10,696 crore from ₹11,061 crore in the year-ago period. According to the latest quarterly results, PFC managed to deliver modest profit growth despite pressure on its core lending income, reflecting resilient profitability during the quarter. The decline in NII, which is the difference between interest earned on loans and interest paid on borrowings, can indicate pressure on lending spreads or borrowing costs, making sustained profit growth more challenging.
State-owned Power Finance Corporation has informed stock exchanges that its Board of Directors will consider a proposal for an interim dividend for the financial year 2026-27 at its meeting scheduled for August 7, 2026. The board has now approved an interim dividend of ₹3.90 per equity share for FY27, with the company fixing Thursday, August 27, 2026, as the record date for determining shareholder eligibility. Shareholders whose names appear in the company's records as of this record date will be eligible for the dividend payout, with the interim dividend to be paid on or before September 6, 2026 in accordance with applicable regulations. The dividend will be paid subject to applicable tax deductions.
PFC's sales declined 0.43% to ₹28,312.95 crore in Q1 FY27 compared to ₹28,436.25 crore in the corresponding quarter of the previous year. Despite the revenue decline, the company maintained strong operational efficiency with an Operating Profit Margin (OPM) of 100.63% in the June 2026 quarter, compared to 99.62% in the June 2025 quarter. The company's Profit Before Depreciation and Tax (PBDT) rose 1% to ₹11,278.06 crore from ₹11,213.24 crore year-on-year, while Profit Before Tax (PBT) increased 1% to ₹11,260.08 crore from ₹11,198.99 crore in the previous year. These operational metrics demonstrate PFC's ability to maintain profitability despite challenging market conditions.
Despite declining net interest income, PFC continued to expand its lending portfolio and maintain its leadership position in financing clean energy projects. The renewable energy loan book stood at ₹1.63 lakh crore at the end of the June quarter, making PFC the country's largest renewable energy financier. This significant portfolio in renewable energy financing demonstrates the company's continued focus on supporting India's power and renewable energy sectors. The company has also incorporated new wholly-owned subsidiaries including Benchigere Transmission Limited for the 400kV Benchigere transmission system in Tumakuru District and Kushtagi Transmission Limited for the 765kV Kushtagi transmission project.
The PSU stock closed 0.48% higher at ₹420 per share on Friday following the announcement of Q1 results and interim dividend declaration. As reported by NDTV Profit, the shares have fallen 1.03% in one week but rose 1.66% in one month. The stock has delivered strong performance with 15.65% gains year-to-date and 2.7% growth in the last one year. The results were announced after market close, with shareholders and stakeholders closely observing the outcome of this meeting regarding the potential distribution of interim dividends, which directly impacts shareholder value and returns. Going forward, investors are likely to watch trends in lending growth, interest margins and asset quality, alongside the company's continued focus on financing India's power and renewable energy sectors.
