Q2 2026 Power Finance Corporation Ltd Earnings Call Transcript
Key Points
- Power Finance Corp Ltd (BOM:532810) reported a 17% year-on-year increase in consolidated profit after tax, reaching INR 16,816 crore.
- The company's loan asset book grew by 14% in H126, driven by strong disbursements of INR 86,000 crore, a 30% increase from the previous half-year.
- The net NPA ratio is at its lowest level in the last 10 years, standing at 0.37%, indicating improved asset quality.
- Power Finance Corp Ltd (BOM:532810) entered its first cross-border financing deal in Bhutan, marking a significant expansion in its lending business.
- The company declared an interim dividend of INR 3.65 per share, with a cumulative interim dividend for FY26 at INR 7.35 per share, reflecting a commitment to shareholder returns.
- The company experienced an exchange loss of around INR 1,100 crore due to unfavorable euro-USD exchange rate movements.
- There is increased competition in the market from other financial institutions, which could pressure margins and spreads.
- The company faces challenges with prepayments, particularly in the generation segment, which could impact loan book growth.
- There is uncertainty regarding the impact of new RBI guidelines on provisioning and risk weights for infrastructure exposures.
- The company has not received any prepayments from the Kaleshwaram project, which remains in stage 2, indicating potential risk exposure.
Ladies and gentlemen, good day and welcome to Power Finance Corporation Q2 FY26 earnings call hosted by Motila Loswal Financial Service Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the con fence over to Abhijit Tibrewal from Motila Luswal.
Thank you and over to you, sir.
Yeah, thank you, Daesh. Good afternoon, everyone. I am Abhijit Tiriwal from Motila Loswal, and it is our pleasure to welcome you all to this earnings call.
Thank you very much for joining us for the Power Finance Corporation call to discuss their Q2 FI26 earnings. To discuss the company's earnings, I am pleased to welcome the senior management team at PFC represented by Ms. Parminder Chopra, Chairman and managing director.
Mr. Rajeev Ranjanha, director of projects, Mr. Manoj Sharma, director of commercial, Mr. Sandeep Kumar, director of finance, on behalf of Motila Loswal, we thank the senior management and the investor relations team of Power Finance
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