“Profit up, provisions down – PFC’s Q3 surprise!”

📌 Power Finance Corporation (PFC) Q3 FY26 – Key Points - Net Profit: ₹4,763 crore (+15% YoY) – driven by lower provisions & strong loan growth - Revenue from Operations: ₹14,656 crore (+12.4% YoY) – higher interest income - Net Interest Income (NII): ₹5,606 crore (+19.4% YoY) – loan book expansion - Loan Book: ₹5.69 lakh crore (+13.1% YoY) – power sector financing momentum - Asset Quality: - Gross Stage 3 Assets: 1.64% (improved from 1.87%) - Net Stage 3 Assets: 0.37% - Coverage Ratio: 84.2% – strong provisioning buffer - Capital Adequacy (CRAR): 22.39% – healthy solvency position - Dividend: 3rd interim dividend ₹4/share; cumulative FY26 dividend ₹11.35/share - Provisions: Dropped sharply to ₹5 crore (vs ₹242 crore in Q2) - Stock Reaction: Shares rallied ~8% ahead of results, trading around ₹402–₹406 🔎 Investor Watchouts - Heavy reliance on power sector borrowers - Regulatory changes could impact lending dynamics - Interest rate environment remains a key sensitivity 🚀 Strategic Outlook - Continued leadership in power sector financing - Strong subsidiaries (REC, etc.) add to consolidated strength - Focus on asset quality improvement and sustainable dividend payouts - Adequate capital buffer supports future growth ✅ Bottom Line for Investors: PFC delivered a solid Q3 with strong profitability, improved asset quality, and attractive dividends. The stock remains a high-yield PSU finance play, but investors should monitor sector risks and regulatory changes.