Power Finance Corporation Limited (IN:PFC)
:PFC
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Power Finance Corporation Limited
(PFC)
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Rating:66Neutral
Price Target:
₹487.00
▲(29.56% Upside)
Action:Downgraded
Date:05/15/26
The score is primarily driven by strong profitability and growth trends but is held back by persistently high leverage and highly volatile cash-flow generation. Valuation is a major positive (very low P/E with a solid dividend yield), while technical signals are mixed with neutral momentum and weaker short-term trend versus the medium-term trend.
Positive Factors
Revenue & Margin Improvement
Sustained top-line growth and a multi-percentage-point rise in net margins strengthen core earnings capacity. Durable higher margins increase the buffer against credit costs and support internal capital generation, improving ability to fund lending and absorb cyclical stress over the medium term.
Negative Factors
Very High Leverage
Debt-equity at multi-turn levels materially increases refinancing, interest-rate and credit-cycle vulnerabilities. High leverage narrows the margin for error on asset-quality shocks, raises funding sensitivity, and limits strategic flexibility in a downturn, elevating medium-term financial risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Improvement
Sustained top-line growth and a multi-percentage-point rise in net margins strengthen core earnings capacity. Durable higher margins increase the buffer against credit costs and support internal capital generation, improving ability to fund lending and absorb cyclical stress over the medium term.
Read all positive factors
Power Finance Corporation Limited (PFC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.42T
Dividend Yield4.62%
Average Volume (3M)186.17K
Price to Earnings (P/E)4.8
Beta (1Y)1.32
Revenue Growth5.79%
EPS Growth12.66%
CountryIN
Employees545
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)75.01
Shares Outstanding3,300,101,800
10 Day Avg. Volume259,974
30 Day Avg. Volume186,168
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)0.94
Price to Sales (P/S)1.11
P/FCF Ratio2.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)60.15
Revenue Forecast (FY)₹270.11B
Power Finance Corporation Limited Business Overview & Revenue Model
Company Description
Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory, and other services to the power sector in India. The company offers fund based financial policies/products, including guidelines fo...
How the Company Makes Money
PFC primarily makes money through financial intermediation in the power sector. Its main revenue stream is interest income earned on loans and advances extended to borrowers such as generation companies, transmission utilities, and distribution co...
Power Finance Corporation Limited Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11T | 1.13T | 1.06T | 915.34B | 745.34B | 749.46B |
| Gross Profit | 435.42B | 428.02B | 416.78B | 335.66B | 275.17B | 302.37B |
| EBITDA | 416.87B | 429.13B | 386.88B | 336.42B | 265.48B | 234.17B |
| Net Income | 247.55B | 259.01B | 229.91B | 197.61B | 158.89B | 140.15B |
Balance Sheet | ||||||
| Total Assets | 12.23T | 12.45T | 11.78T | 10.39T | 8.96T | 7.91T |
| Cash, Cash Equivalents and Short-Term Investments | 60.33B | 46.73B | 95.85B | 33.89B | 1.28B | 9.14B |
| Total Debt | 10.30T | 10.13T | 9.72T | 8.62T | 7.51T | 6.60T |
| Total Liabilities | 10.56T | 10.71T | 10.23T | 9.05T | 7.84T | 6.95T |
| Stockholders Equity | 1.27T | 1.33T | 1.18T | 1.01T | 841.58B | 716.76B |
Cash Flow | ||||||
| Free Cash Flow | -89.22B | 550.63B | -931.10B | -981.44B | -748.40B | 46.03B |
| Operating Cash Flow | -86.76B | 554.00B | -922.69B | -978.20B | -747.17B | 49.04B |
| Investing Cash Flow | -15.64B | -633.46B | -23.12B | -34.09B | -16.94B | -5.47B |
| Financing Cash Flow | 157.54B | 92.65B | 942.58B | 1.01T | 755.37B | -83.71B |
Power Finance Corporation Limited Technical Analysis
Neutral
375.90
Price Trends
431.96
Negative
405.37
Positive
392.28
Positive
Market Momentum
-0.71
Positive
41.83
Neutral
11.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PFC, the sentiment is Neutral. The current price of 375.9 is below the 20-day moving average (MA) of 454.35, below the 50-day MA of 431.96, and below the 200-day MA of 392.28, indicating a neutral trend. The MACD of -0.71 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 11.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PFC.
Power Finance Corporation Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ₹1.42T | 4.84 | ― | 4.62% | 5.79% | 12.66% | |
65 Neutral | ₹19.28B | 4.83 | ― | ― | -18.77% | 47.18% | |
64 Neutral | ₹411.29B | 7.92 | ― | 2.92% | 19.73% | 48.94% | |
62 Neutral | ₹355.93B | 16.79 | ― | ― | 29.45% | 19.37% | |
62 Neutral | ₹876.60B | 6.35 | ― | 5.56% | 5.53% | 2.67% | |
53 Neutral | ₹1.27T | 16.27 | ― | 1.52% | 0.67% | 7.82% |
* Financial Sector Average
IN:PFC
Power Finance Corporation Limited
429.10
39.07
10.02%
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205.45
-15.93
-7.20%
IN:IREDA
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126.70
-44.00
-25.78%
IN:IRFC
Indian Railway Finance Corp. Ltd.
97.15
-37.08
-27.62%
IN:PFS
PTC India Financial Services Limited
30.02
-6.12
-16.93%
IN:RECLTD
REC Limited
332.90
-48.21
-12.65%
Power Finance Corporation Limited Corporate Events
Power Finance Corporation Schedules Investor Meet After FY 2025-26 Results
May 8, 2026
Power Finance Corporation Limited has scheduled an investor and analyst meet on Wednesday, May 13, 2026, at 3:30 p.m., following the announcement of its fourth-quarter and full-year 2025-26 financial results. The session will be led by the company...
PFC Sets Up New SPV for Fatehgarh-II Transmission Project
May 7, 2026
Power Finance Corporation Limited has announced the incorporation of FATEHGARH II Transmission Limited as a wholly owned subsidiary of its unit PFC Consulting Limited, to act as a special purpose vehicle for a new transmission scheme. The project ...
PFC arm floats four SPVs to anchor new power transmission projects
Apr 14, 2026
Power Finance Corporation’s wholly owned unit PFC Consulting Limited has incorporated four new special purpose vehicles—Babai Transmission, Bikaner Transmission, Humnabad Power Transmission, and Hebbani Power Transmission—as whol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.