Highest-ever earnings, dividend of ₹15.80 per share, and asset quality improvement strengthen PFC’s leadership among Indian NBFCs
Power Finance Corporation Ltd. (PFC), the Maharatna public sector enterprise under the Ministry of Power, reported its highest-ever consolidated Profit After Tax of ₹30,514 crore in FY25, marking a 15 percent year-on-year increase over ₹26,461 crore in FY24. PFC continues to retain its position as India’s most profitable non-banking financial company both on consolidated and standalone bases.
The consolidated loan book grew 12 percent year-on-year to ₹11,09,996 crore as of 31 March 2025, and net worth rose 16 percent to ₹1,55,155 crore. Gross NPA at the consolidated level improved to 1.64 percent from 3.02 percent, while Net NPA fell to 0.38 percent, reflecting ongoing asset quality strengthening.
Standalone PAT Surges 21 Percent to ₹17,352 Cr, Renewable Book Expands Sharply
PFC reported a standalone PAT of ₹17,352 crore in FY25, up from ₹14,367 crore in the previous year. Q4 FY25 standalone PAT came in at ₹5,109 crore, compared to ₹4,135 crore in Q4 FY24, reflecting a 24 percent increase.
The renewable energy loan book rose to ₹81,031 crore as of 31 March 2025, up 35 percent year-on-year. The company has more than doubled its renewable portfolio in the last five years, reaffirming its leadership in clean energy financing in India.
According to CMD Parminder Chopra, “PFC continues to set new benchmarks for financial performance and sustainability. With a 13 percent growth in our loan portfolio, we are driving India’s power and infrastructure future with realism, resilience, and robust execution.”
Dividend and Capital Return Strategy
The Board of Directors recommended a final dividend of ₹2.05 per equity share. This adds to the interim dividend of ₹13.75 per share paid in four tranches, taking the total FY25 dividend to ₹15.80 per share. The record date for the final dividend is 13 June 2025.
Loan Growth, Resolution Successes, and Asset Quality Metrics
Loan assets at the standalone level rose by 12.81 percent from ₹4,81,462 crore to ₹5,43,120 crore. The company disbursed ₹1,68,265 crore during the year, up from ₹1,27,656 crore in FY24.
The gross NPA ratio declined to 1.94 percent, while the Net NPA ratio halved to 0.39 percent. This was aided by successful resolution of key accounts including the 3,600 MW KSK Mahanadi project, TRN Energy, and Shiga Energy.
Director (Finance) Sandeep Kumar noted, “Our record PAT of ₹17,352 crore and net NPA of 0.39 percent underscore our execution strength and risk discipline. We remain committed to sustainable growth and stakeholder value creation.”
Balance Sheet Strength and Borrowing Mix
As of 31 March 2025, PFC’s net worth exceeded ₹90,937 crore, growing 15 percent from ₹79,203 crore last year. The company’s capital adequacy ratio (CRAR) stood at 22.08 percent, well above regulatory norms.
Outstanding borrowings stood at ₹4,65,763 crore. Domestic bonds accounted for 56 percent, foreign currency loans 19 percent, and RTLs from banks 19 percent. Notably, 95 percent of foreign currency exposure is hedged.
ESG and Sectoral Commitment
PFC’s environmental, social, and governance framework continues to drive its long-term vision. The company was appointed as nodal agency for key sectoral initiatives and has launched a new IFSC subsidiary focused on green lending from GIFT City.
More than 77 percent of the loan book is government-linked, ensuring lower credit volatility. PFC maintains 80 percent provisioning against stage three assets and is actively pursuing resolution for projects within and outside the NCLT framework.
Outlook and Strategy
The management expressed confidence in FY26, with ₹90,937 crore in net worth and an opening order book of ₹549 crore at the standalone level. The company aims to continue supporting India’s energy transition while maximizing shareholder value and pursuing operational excellence.
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