Power Finance Corporation (PFC) Q2 FY26 Financial Results Analysis & Dividend Announcement

Power Finance Corporation Ltd. (PFC) has released its financial results for the second quarter ending September 30, 2025. The quarter was characterized by robust growth in core income and a continued, steady improvement in the company's asset quality profile. Key Financial Highlights (Q2 FY26 vs. Q2 FY25) Net Profit: Consolidated Net Profit saw a modest 2.0% year-over-year (YoY) increase, concluding the quarter at ₹4,462 crore, compared to ₹4,370 crore in the corresponding period last year. Net Interest Income (NII): The company demonstrated significant strength in its core operations. NII registered a substantial 20.0% YoY growth, climbing to ₹5,290 crore from ₹4,407 crore, indicating strong underlying operational performance. Asset Quality and Portfolio Health PFC maintained its positive trajectory in strengthening its balance sheet, reporting sequential improvements in its key asset quality metrics: Gross Credit Impaired Assets (GCIA): The GCIA ratio improved to 1.87% as of September 30, 2025, a reduction from the 1.92% recorded at the end of the previous quarter (June 2025). Net Credit Impaired Assets (NCIA): The NCIA ratio also saw a sequential improvement, declining to 0.37% from 0.38% in the prior quarter, reflecting strong provisioning and recovery mechanisms. Provisioning and Risk Management In its regulatory disclosures, PFC noted the classification of a specific loan account with a total exposure of ₹263 crore as "fraud." The corporation has prudently established 100% provisioning against this account, fully mitigating its financial impact. Shareholder Value: Interim Dividend Declared Reinforcing its commitment to delivering shareholder returns, the Board of Directors has approved the payment of an interim dividend for the financial year. Dividend Amount: ₹3.65 per equity share. Record Date: November 26, 2025 Payment Date: The interim dividend will be credited to all eligible shareholders on or before December 6, 2025.