PFC Q4 profit up 11% to Rs 8,358 cr; makes Rs 263 cr provision for Gensol losses

Mumbai: State-owned Power Finance Corporation on Wednesday reported 10.61 per cent growth in consolidated net profit at Rs 8,358 crore mainly on the back of higher interest income.

Chairman and Managing Director Parminder Chopra said the company had to make a full provision on its Rs 263 crore outstanding from the crisis-struck Gensol Engineering and added that every avenue of recovery is being deliberated.

The company's net interest income rose 38 per cent to Rs 12,092 crore on the back of a 12.8 per cent loan growth and benefitted by Rs 1,200 crore after the resolution of KSK Mahanadi account, Chopra said.

Net interest margin on earning assets widened to 3.64 per cent in FY25 from 3.46 per cent in the year-ago period.

Chopra said the company is targeting 10-11 per cent loan growth in FY26, which is lower than the one attained in FY25, and attributed the same to the bigger book size.

She said there is no dearth of demand, and that it has a loan pipeline of Rs 3 lakh crore.

The company will depend on private renewable sector investments for a bulk of the loan growth in FY26, she said, adding that it also sees significant opportunities in the thermal and nuclear power generation sectors over the medium term.

The company will go slow on the infrastructure funding, and will prefer to focus on the power sector, she said.

On the expenses front, the impairment on financial instruments suffered a huge spike at Rs 1,221 crore in the March quarter as against a write-back of Rs 1,071 crore, which restricted the profit growth.

On the Gensol account, Chopra said the company had disbursed Rs 352 crore for helping the company get 3,000 electric vehicles on lease, and 2,741 of the EVs have been procured and hypothecated to PFC.

It invoked securities including term deposits to recover Rs 44 crore in the account, and the overall outstanding stands at Rs 307 crore.

The company has other securities including personal guarantees and corporate guarantees, which will be invoked to recover more of the outstanding, she said.

Chopra insisted that the challenges in the account should not be seen as reflective of drawbacks in PFC's credit appraisal as this is a promoter-driven drawback.

The company will borrow Rs 1.4 lakh crore in FY26, and over a fifth of it will be through international sources, Chopra said.