Power Finance Corporation Q1 Net Profit Up 0.18% to ₹8,997.92 Crore

Power Finance Corporation Ltd (PFC) announced its consolidated net profit for the quarter ended 30 June 2026, standing at ₹8,997.92 crore, a 0.18% increase from the same quarter last year. The company's total consolidated revenue from operations for the quarter was ₹28,526.86 crore, a marginal decrease from the year-ago period.

The Board of Directors declared a first interim dividend of ₹3.90 per equity share for the financial year 2026-27. The record date for determining eligible shareholders for this dividend is 27 August 2026, and the payment is scheduled on or before 6 September 2026.

PFC's board approved a draft scheme of merger by absorption with REC Limited on 28 June 2026. The share exchange ratio for the merger is set at 88 equity shares of PFC Limited for every 100 equity shares of REC Limited. The appointed date for the merger is 1 April 2027, or another mutually agreed date.

On a standalone basis, PFC reported a net profit of ₹4,745.40 crore for the quarter ended 30 June 2026, representing a 5.42% increase from the same quarter last year. Standalone revenue from operations was ₹13,993.13 crore, compared to ₹13,773.42 crore in the year-ago quarter.

The company's total consolidated income for the quarter ended 30 June 2026 was ₹28,563.17 crore, compared to ₹28,628.78 crore in the corresponding quarter of the previous year. Total consolidated expenses for the quarter decreased to ₹17,303.09 crore from ₹17,429.79 crore year-on-year.

Consolidated basic and diluted earnings per equity share for the quarter were ₹21.25, up from ₹20.81 in the quarter ended 30 June 2025. The merger scheme requires requisite approvals from statutory and regulatory authorities, as well as shareholders and creditors.

PFC's performance is a significant indicator of the power sector's financial health in India. As a leading power finance company, PFC's growth and profitability have a direct impact on the sector's development. The company's merger with REC Limited is expected to create a stronger entity, better equipped to support the growth of the power sector.

The power sector is a critical component of India's infrastructure, and PFC's role in financing power projects is vital to the country's economic growth. The company's financial performance and merger plans are closely watched by investors, policymakers, and industry stakeholders.

In conclusion, PFC's Q1 net profit increase and merger plans with REC Limited are significant developments in the power finance sector. The company's performance and growth plans will continue to be closely monitored by stakeholders, and its role in supporting the power sector's development will remain crucial to India's economic growth.