Announcement
Announcement under Regulation 30 (LODR)-Change in Management 1 Oct - Executive Director (Projects) Rajesh Kumar Shahi superannuated effective 30.09.2026 afternoon.
Source: Bse
Power Finance Corporation Limited (PFC)
Large CapFinancial Services stocks · Large cap · NSE
Power Finance Corporation Ltd. (PFC) is a leading Indian NBFC, a Government of India Undertaking, primarily focused on financing the power sector. It holds a 52.63% stake in REC and is undergoing a strategic merger process to create a unified financial institution for India's power sector.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result16 Aug, 01:14 am IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags03 May 2026
Coverage12/14 · 86%
Valuation2026-07-20 · Rf 6.8% · Financial Services P/E 17.0 (n=243)
Technical timing lens
Trend score and candlestick chart
33Bearishfull bear SMA stack · SMA20 -5.3% / mo · MACD + · near 52W low
Stock trend: 26
Sector RS: 44
Sector 3M: -5.8% vs Nifty 500 -5.6%
Financial Services FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
PFCD candles · FIT view-29.2%Latest close ₹332.40 on 2026-10-19
Bar
-0.5%
RSI
43
MACD hist
2.44
52W pos
11%
2026-10-19O ₹334.20H ₹337.55L ₹330.30C ₹332.40Vol 78.9L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
PFCNifty Financial ServicesNifty 500
- PFC
- -19.7%
- Nifty 500
- -5.6%
- Nifty Financial Services
- -6.0%
- Vs Nifty 500
- -14.1 pp
Chart stats
19 Oct 2026- From 52W high
- -31.7%
- 52W range position
- 11%
- ATR (14)
- 2.4%
- Volume vs 20D
- 0.76x
- Avg traded value
- ₹340 Cr
- 20D price channel
- ₹313.4 - ₹350
₹486.5
₹313.4 - ₹486.5
₹8.1
Latest completed session
20-session average
23.5% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend argues for patience, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · UNDERVALUED60
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad0
Revenue -0.0% · PAT +0.2% YoY
Technical
Bearish33
Price trend and sector-relative-strength timing.
Valuation
Legacy model+83.5%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence58
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 0/100Rev -0% YoY · PAT +0% YoY
Filed 30 Jun 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹28,527 Cr | -0.0% | -1.4% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹8,998 Cr | +0.2% | +4.7% |
| PAT margin | 31.5% | +7 bps | +181 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 4.37
- P/B
- 0.80
- EV/EBITDA
- 16811.54
- Market Cap
- 113870.00Cr
Profitability
- ROE
- 20.70%
- ROCE
- 9.71%
- ROA
- 2.70%
- Dividend Y
- 5.37%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- 18.00%
Balance Sheet
- Debt/Equity
- 7.62
- Interest Coverage
- —
- Altman Z
- 0.25
- Book Value
- 433.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- -4504.00 Cr
- EPS TTM
- 78.93
Shareholding
- Promoter Hold
- 55.99%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 18%
Financial History
Updated 19/10/2026
Revenue
₹ CrLatest: 28.5k-1.4% vs prev
Net Profit
₹ CrLatest: 8,998+4.7% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 43.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.6% over last month) — short-term momentum negative.
- RSI(14) at 43 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 32% off 52W high · 6% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
20
RS percentile
Stage 4 Downtrend
1M return
-3.0%
3M return
-19.7%
6M return
-29.3%
1Y return
-15.8%
RS 1D
+2
RS 20D
+7
Sector rank
#9
Industry rank
#20
Stage evidence
- Price is 17.4% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -2.5%.
- Both 3-month and 6-month returns are negative.
50-DMA
price below
200-DMA
price below
Sector
neutral
Industry
lagging
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 86.21+0.77%
RS vs Nifty 50086
Valuation & peers
U-Score 60 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 60 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Deep Value
Fundamental score breakdown
U band · UNDERVALUEDValuation29/30
Growth16/25
Quality10/20
Balance Sheet2/15
Cash Flow1/10
Piotroski
3/9 (+1)
Penalties
1
Raw sum
60
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
60/100 · legacy band UNDERVALUED
Positive drivers
- Fair-value margin of safety is positive at 83.5%.
- Valuation contributes 29/30 to the score.
- Growth contributes 16/25 to the score.
Main drags
- Altman Z is 0.3, in distress territory.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Balance sheet is weaker at 2/15; verify the latest quarterly trend.
Sector valuation model
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Primary lens
P/B adjusted for ROA/ROE and leverage quality.
Secondary checks
AUM growth, spreads, credit cost, liquidity and ALM risk.
Main risk check
Fast growth with weak asset quality deserves a discount.
PE
4.4
PB
0.8
EV/EBITDA
16811.5
ROE
20.7%
ROCE
9.7%
FCF Yield
—
Debt/Equity
7.6
MoS
+83.5%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
60
Previous: 60
Legacy U-Score band
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+83.5%
Previous: +83.5%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
60
60
60
60
60
60
60
60
60
60
60
60
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹876.91
+62.1% MoS
Growth-justified P/E
25.5
Growth-justified Value
₹2,012.72
+83.5% MoS
PEG
0.25
Comparable companies
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
BAJAJHFL
Large
Bajaj Housing Finance Limited
NBFC
match 137
27
24.7
12.1%
+4%
OVERVALUED
HDBFS
Large
HDB Financial Services Limited
NBFC
match 136
35
14.4
14.7%
+44%
WATCHLIST
ABCAPITAL
Mid
Aditya Birla Capital Limited
NBFC
match 134
24
26.0
12.0%
+3%
OVERVALUED
AADHARHFC
Large
Aadhar Housing Finance Limited
NBFC
match 134
40
16.8
15.9%
+33%
WATCHLIST
HOMEFIRST
Large
Home First Finance Company India Limited
NBFC
match 133
35
20.0
15.7%
+26%
WATCHLIST
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-06-13T07:55:41.698Z
Management commentary snapshot
PFC reports highest-ever standalone net profit of INR 20,051 crore (+16% YoY) in FY26, driven by NII growth and provision reversals. Consolidated loan book reached INR 11.64 lakh crore with net NPAs at a new low of 0.13%.
PFC delivered robust FY26 results with record profitability and significant asset quality improvement. The proposed merger with REC is a strategic move to create a larger, more efficient entity, targeting 10% loan growth for FY27. Prepayment pressures and forex volatility remain key areas to monitor.
Growth engines
PFC-REC Merger
A unified institution will help unlock better scale, strong capital efficiency, faster decision-making, deeper sector reach and larger financing capabilities.
Renewable Energy Financing
Focus on adding hybrid renewable projects, renewable energy with storage solutions such as battery and pump storage.
Distribution Sector Lending
Largely see opportunities in short to medium term loan requirements of distribution companies.
Conventional Energy & Infrastructure
Opportunities emerging across thermal and nuclear capacity expansion aligned with national goals. Lending in the infrastructure sector will also contribute.
Capacity and execution
Energy Storage Solutions Sanctioned
Cumulatively, sanctioned around INR 16,000 crores towards battery and pump storage projects.
Tailwinds
Power Sector Growth
India's power sector will be a key growth engine for 'Viksit Bharat 2047'. India ranks third globally in renewable energy installed capacity.
Strong Electricity Demand
Electricity demand in India continues to remain strong. Peak power demand touched all-time high of 256 GW in April '26.
Improving DISCOM Performance
AT&C losses reduced to 15.04%. For the first time, DISCOMs reported positive PAT of approximately INR 2,700 crore at an all-India level.
Moderating Prepayment Pressures
RBI has kept repo rate unchanged at 5.25% for the second consecutive meeting, maintaining a neutral stance, suggesting prepayment pressures should moderate.
Headwinds
Prepayment Pressure
Declining interest rate cycle and competitive pressure from banks led to disproportionate prepayments in FY26, particularly in the commissioned segment.
Forex Market Volatility
Volatility in forex market led to some pressures on the overall funding cost and higher translation losses in FY26.
Geopolitical Situation
Middle East crisis led to sharp depreciation in Rupee against USD and EUR during the financial year.
Risk radar
Competition and Refinancing Risk
Banks are aggressively refinancing commissioned assets, especially in the renewable portfolio, posing a constant competition threat.
Foreign Currency Exchange Rate Volatility
Abnormal movement in exchange rates can impact hedging costs and lead to notional losses, despite 97% of foreign currency portfolio being hedged.
Interest Rate Sensitivity
PFC's 65% fixed-rate, longer-tenor borrowing means its interest liability is not as flexible as market rates, leading to prepayment pressure in declining rate cycles.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
Annual financial results like PAT and NII are best understood YoY for overall performance. However, asset quality ratios, spreads, and NIM are crucial QoQ to track sequential momentum, management's pricing strategy, and the impact of a changing interest rate environment.
Sector KPIs management disclosed
Consolidated Loan Book
Largest NBFC loan book at around INR 11.64 lakh crore.
Standalone Net Profit
Highest ever net profit of INR 20,051 crore with a 16% increase year-on-year basis.
Net Interest Income (NII) Growth
Driven by a healthy net interest income growth of 13% along with provision reversals.
Net Non-Performing Assets (NNPA)
Consolidated net NPAs at around 0.13%. Standalone net credit impaired asset ratio at new low at 0.15%.
Management forward view
Loan Growth Target
Targeting a loan growth of around 10% in Financial Year '27.
PFC-REC Merger Timeline
Targeting for the merged entity to come into existence by 1st of April 2027, subject to regulatory approvals.
Government Company Status
Government has committed to maintain the status of the merged entity as a government company, despite potential shareholding changes.
Funding Strategy
Will continue to diversify funding sources, balancing cost optimization and diversification of funds.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Loan Growth | 7% in FY26 (standalone) | Achievement of 10% loan growth target in FY27, indicating effective management of prepayment pressures and competitive intensity. |
| Spreads | 2.46% in FY26 | Maintenance of spreads within the guided range of 2.40%-2.50% for FY27, reflecting successful calibration of lending rates and funding costs. |
| PFC-REC Merger Progress | In-principle approval, advisors appointed | Timely receipt of regulatory approvals (MCA, RBI, SEBI, Cabinet, Presidential) and clarity on the detailed merger structure and government shareholding. |
| Foreign Exchange Volatility Impact | Higher translation losses in FY26 due to Rupee depreciation | Effectiveness of risk mitigating actions and hedging strategies in managing future forex volatility and its impact on funding costs and profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
58Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 22nd percentile of the scored universe and 38th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 20 Oct 2026
management-trust-v1
28 docs text-extracted · 20 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
22nd percentile
overall median 67 · Financial Services: 38th pctile, median 62 · Large: 13th pctile, median 73
Evidence depth
Financial-only
28 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Needs extra due diligence; demand valuation comfort and recent improvement.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
40
weak · profit to cash conversion
Balance sheet
22
weak · leverage and solvency
Discipline
76
strong · capital discipline
Results
75
strong · quarterly consistency
Trust positives
- ▸Promoter holding is 56%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-4504 Cr.
- ▸Debt/equity is 7.62.
- ▸Altman Z is 0.25.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Power Finance Corporation Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Appointment of Statutory Auditor/s 9 Sep - CAG appoints Thakur Vaidyanath Aiyar & Co and Mehra Goel & Co as joint statutory auditors for FY 2026-27.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Change in Management 1 Jun - Executive Director Shri G. Jawahar retired on superannuation effective 31.05.2026.
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2026 from bse
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.