PFC Q4 results: Profit rises 11% to ₹8,358 crore on interest income gains

PFC posts 11 per cent YoY profit rise in Q4 FY25; interest income and loan growth drive earnings; asset quality improves and renewable book rises 35 per cent

State-owned Power Finance Corporation (PFC) reported an 11 per cent year-on-year increase in its consolidated net profit for the fourth quarter of the financial year 2024-25 (FY25), reaching ₹8,358 crore, compared to ₹7,556 crore in the corresponding period of the previous year.

 

The profit growth was driven by higher interest income, supported by a 12.8 per cent year-on-year increase in loan assets.

 

However, Chairman and Managing Director Parminder Chopra stated that PFC is projecting a loan growth of 10–11 per cent for the current financial year due to the company’s expanding loan book, which makes higher growth rates incrementally harder to sustain. Chopra also said that demand remains strong, with a loan pipeline of ₹3 trillion in place.

 

 

The company’s net interest income (NII) rose by 41 per cent to ₹12,681 crore during the quarter, up from ₹8,987 crore in the corresponding quarter of the previous financial year.

 

She said that the PFC benefited from a ₹1,200 crore gain following the resolution of the KSK Mahanadi account.

 

“KSK definitely for us is a revenue booster for this quarter,” she said. “Going forward, we are expecting resolution of… two assets in NCIT, Sinar Thermal and India Power Company. We are expecting to have a resolution of those two assets in the coming financial year. There are two assets, Shiga and TRN Energy, which we are expecting the resolution outside NCIT,” she added.

 

On the asset quality front, the gross non-performing asset (NPA) ratio improved, declining to 1.94 per cent from 2.68 per cent in the previous quarter. Similarly, the net NPA ratio, which factors in provisions for bad loans, fell to 0.39 per cent from 0.71 per cent sequentially. 

 

The total income rose to ₹29,285 crore during the reported quarter, from ₹24,176 crore in the same period a year ago.

 

Chopra said that the company has made a full provision on the ₹263 crore outstanding from Gensol Engineering. She added that all possible recovery options are being examined. She also stated that the issue is promoter-specific rather than indicative of a broader industry problem.

 

The company had disbursed ₹352 crore to Gensol for leasing 3,000 electric vehicles, of which 2,741 were delivered and hypothecated. However, the final tranche of 259 vehicles was delayed, she said. Despite the shortfall, the payment for the undelivered vehicles had already been made to the dealer, with recoveries of ₹44 crore made through the invocation of bank guarantees and the TRA account.

 

The company’s renewable energy portfolio reached ₹81,031 crore, a 35 per cent increase from the previous year. Distribution and renewable energy segments accounted for 55 per cent and 17 per cent of disbursements, respectively.

 

“The main growth drivers were distribution and renewable, which contributed 55 per cent and 17 per cent to the disbursements,” Chopra said.

 

As of March 31, 2025, PFC's borrowing mix showed a diversified funding portfolio, with total outstanding borrowings at ₹4,65,763 crore. Of this, ₹2,61,398 crore or 56 per cent was raised through domestic bonds. Foreign currency borrowings and term loans (RTL) from banks and financial institutions each accounted for 19 per cent, at ₹89,132 crore and ₹88,877 crore, respectively.

 

Chopra said that PFC hedged 95 per cent of the exchange risk on its foreign currency portfolio.

 

“Right now, 95 per cent of our portfolio is hedged for exchange risk. Nearly 100 per cent exchange risk is hedged for USD denominated portfolio,” she said.

 

For FY26, the company aims to borrow ₹1.4 trillion. “Our board has already approved a borrowing plan for the next financial year, 1.4 trillion. So that is going to be a mix of domestic as well as international sources we have been maintaining in order to diversify our borrowing portfolio, we will be raising around 15 to 20 per cent through foreign currency borrowing. It will be a mix of different instruments, bonds, terminals, short-term instruments,” she said.

 

The company’s assets under management (AUM) stood at ₹5.43 trillion, reflecting a year-on-year growth of 12.8 per cent and a sequential (quarter-on-quarter) increase of 7.8 per cent.