Power Finance Corporation (PFC), India’s leading Maharatna PSU and non-banking financial corporation, delivered a robust financial performance for the fiscal year 2025, reinforcing its position as a key player in the power financing sector. The company reported an 11% year-on-year surge in its consolidated net profit for Q4 FY25, reaching ₹8,358 crore, up from ₹7,556.4 crore in the same quarter of the previous fiscal year. This stellar performance, coupled with a recommended dividend of ₹2.05 per share, has caught the attention of investors and market analysts alike.
Key Financial Highlights for Q4 FY25
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Net Profit: PFC’s consolidated net profit rose 11% to ₹8,358 crore in Q4 FY25, compared to ₹7,556.4 crore in Q4 FY24.
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Total Income: The company’s total income for the quarter surged 21.1% to ₹29,285.45 crore, up from ₹24,176.34 crore in the corresponding quarter of FY24.
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Net Interest Income (NII): PFC saw a remarkable 41% year-on-year increase in NII, reaching ₹12,681 crore, compared to ₹8,987.7 crore in Q4 FY24.
For the full fiscal year 2025, PFC’s consolidated net profit climbed to ₹30,514.40 crore from ₹26,461.18 crore in FY24, while total income grew to ₹1,06,598.70 crore from ₹91,174.87 crore in the previous year. These figures underscore PFC’s ability to maintain strong growth momentum in a competitive financial landscape.
Dividend Announcement
The board of PFC has recommended a final dividend of ₹2.05 per equity share (face value ₹10) for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). This is in addition to the interim dividends of ₹13.75 per share, already paid in four tranches during FY25. If approved, the final dividend will be disbursed within 30 days of the AGM, with the record date set for June 13, 2025, to determine eligible shareholders.
Growth in Loan Portfolio
PFC’s loan asset book grew by 12.81% year-on-year, reaching ₹5,43,120 crore as of March 31, 2025, compared to ₹4,81,462 crore in Q4 FY24. The company’s renewable loan portfolio saw significant expansion, crossing ₹80,000 crore to reach ₹81,031 crore. Notably, PFC highlighted that its renewable portfolio has more than doubled over the past five years, reflecting its commitment to supporting India’s renewable energy goals.
Market Reaction
Following the announcement of these strong financial results, PFC shares surged 2.29% on the National Stock Exchange (NSE), trading at ₹415.55 per share on May 21, 2025. The positive market response underscores investor confidence in PFC’s growth trajectory and its strategic focus on the power and renewable energy sectors.
About Power Finance Corporation
Established on July 16, 1986, Power Finance Corporation Ltd is a Schedule-A Maharatna CPSE headquartered in New Delhi, with regional offices in Mumbai and Chennai. As a leading non-banking financial corporation (NBFC), PFC plays a pivotal role in financing India’s power sector, offering financial assistance for power generation, transmission, and distribution projects. Its focus on renewable energy and sustainable growth aligns with India’s vision for a greener future.
Why This Matters for Investors
PFC’s strong financial performance, driven by robust growth in net profit, total income, and net interest income, highlights its operational efficiency and strategic focus on high-growth sectors like renewable energy. The proposed dividend of ₹2.05 per share, combined with the interim dividends, makes PFC an attractive option for income-seeking investors. Additionally, the significant expansion of its loan portfolio, particularly in renewables, positions PFC as a key beneficiary of India’s push towards sustainable energy.
However, investors should monitor macroeconomic factors, such as interest rate trends and government policies in the power sector, which could impact PFC’s performance. The company’s ability to maintain its growth momentum while navigating these challenges will be critical.
Looking Ahead
With a solid financial foundation and a growing presence in the renewable energy space, PFC is well-poised to capitalize on India’s increasing energy demands. The company’s focus on expanding its renewable loan book and maintaining strong profitability signals a bright outlook for FY26. Investors should keep an eye on the upcoming AGM and any updates on PFC’s strategic initiatives in the power financing sector.
