Power Finance Corporation Limited Q4FY25 Result Analysis

Power Finance Corporation Limited is a Government Company engaged in extending financial assistance to power, logistics and infrastructure sector and is registered with Reserve Bank of India (RBI) as an Infrastructure Finance Company (IFC). The Company has been conferred with `Maharatna’ Status by the Govt. of India. The Company provides large range of Financial Products and Services like Rupee Term Loans, Transitional Financing Services, Project Term Loan, Equipment Lease Financing, Direct Discounting of Bills, Short Term Loan, and Consultancy Services etc for various Power projects in Generation, Transmission, and Distribution sector as well as for Renovation & Modernization of existing power projects.

Result Analysis:  Power Finance Corporation Limited  (CMP: Rs. 406)

Result Update: Q4FY25

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Financial Performance:

Shareholding Pattern:

Particulars (In %)	Q4FY25	Q4FY24
Promoter	55.99	55.99
FIIs	19.13	17.46
DIIs	16.18	18.26
Public and Other	8.7	8.28

Management Commentary:

• It has announced dividend of Rs 2.5 per share.
• PFC gave a 10-11% loan book growth guidance for the FY26.
• The company is actively focusing on the clean energy sector, aligning its lending strategy with national  sustainability goals and increasing its exposure to renewable energy projects to support India’s transition to a low-carbon economy.

Outlook:

PFC posted strong financial for Q4FY25, supported by a strong loan book, improving asset quality, and focused lending to the government sector. With a YoY PAT growth of 10.6% and GNPA improve to 1.94%. Its strategic emphasis on clean energy is evident from a renewable loan book at Rs 81,031 crore, more than doubling over five years. The successful resolution of stressed assets like KSK Mahanadi further strengthens recovery and risk management. For FY26, PFC has guided for a 10–11% loan book growth, underlining confidence in the sector’s demand outlook. Continued government infrastructure push, Maharatna status, and diversified financing products will support long-term value creation and sustainable growth. The company reported an EPS of Rs 69.67 in FY25, and the stock is currently trading at a P/E of 5.87x and P/B of 2.75x. And it’s dividend yield stand at 3.8% for FY25.

Results:

Particulars (In Rs. Cr.)	Q4FY25	Q4FY24	Q3FY25	YoY%	QoQ%	FY25	FY24	YoY%
Operating Income	28988.16	24064.14	26554.51	20.5	9.2	105717.48	90495.28	16.8
Other Operating Income	276.87	77.26	243.53	258.4	13.7	784.14	601.44	30.4
Other Income	20.42	34.94	23.81	-41.6	-14.2	97.08	78.15	24.2
Total Income	29285.45	24176.34	26821.85	21.1	9.2	106598.7	91174.87	16.9
Operating Expenditure
Interest	16584	15153.66	16561.64	9.4	0.1	64669.98	57968.07	11.6
Employee Expenses	172.34	126.37	121.63	36.4	41.7	553.17	491.06	12.6
Loss on Forex Transaction	308.62	-12.36	13.41	2596.9	2201.4	674.83	-46.52	1550.6
Other Expenses	429.22	367.5	303.22	16.8	41.6	534.18	671.51	-20.5
TOTAL OPERATING EXPENDITURE	17494.18	15635.17	16999.9	11.9	2.9	66432.16	59084.12	12.4
Operating Profit Before Prov. & Cont.	11791.27	8541.17	9821.95	38.1	20.1	40166.54	32090.75	25.2
Provisions & Write Offs	1221.18	-1070.68	-8.92	214.1	-13790.4	1478.7	-1550.77	195.4
Depreciation	15.76	14.85	14.57	6.1	8.2	55.68	53.4	4.3
TOTAL EXPENDITURE	18731.12	14579.34	17005.55	28.5	10.1	67966.54	57586.75	18
EBT	10554.33	9597	9816.3	10	7.5	38632.16	33588.12	15
Tax	2031.3	1693.29	2000.63	20	1.5	7732.92	6358.33	21.6
Deferred Tax	165.15	347.28	56.11	-52.4	194.3	384.84	768.61	-49.9
PAT	8357.88	7556.43	7759.56	10.6	7.7	30514.4	26461.18	15.3

Source: Company website, EWL Research

 

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