Power Finance Corporation Limited (PFC) AI Stock Analysis

• Market Cap: ₹1.18T
• Dividend Yield: 4.62%
• Average Volume (3M): 186.17K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 1.62
• Revenue Growth: 13.05%
• EPS Growth: 16.78%
• Country: IN
• Employees: 545
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 13.52
• Shares Outstanding: 3,300,101,800
• 10 Day Avg. Volume: 259,974
• 30 Day Avg. Volume: 186,168
• PEG Ratio: 0.36
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -1.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹390.00 ▲(3.75% Upside)

The overall stock score is driven by strong financial performance and attractive valuation, offset by bearish technical indicators. The company's high leverage and negative cash flow are significant risks, while the low P/E ratio and high dividend yield offer potential value.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for PFC's financial services in the power sector, enhancing its market position and stability.

Net Profit Margin

Improved net profit margins reflect operational efficiency and effective cost management, contributing to long-term profitability.

Government Support

Government backing provides PFC with strategic advantages in securing projects and funding, ensuring sustained business growth.

Negative Factors

High Leverage

High leverage poses financial risks, potentially impacting PFC's ability to manage debt obligations and invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates challenges in generating cash from operations, which may affect liquidity and financial flexibility.

Reliance on Debt

Heavy reliance on debt financing could strain PFC's financial resources, limiting its ability to withstand economic downturns or interest rate hikes.

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 for solar and wind power generation projects, as well as for funding private sector independent transmission projects; debt refinancing and prepayment policy for solar wind projects; takeout financing, asset acquisition, bridge and corporate loan, buyer's line of credit, credit facility for purchase of power through power exchange, energy saving project, and project and short-term loan services; financing of fuel supply projects and equipment manufacturers; grants/interest free loans for studies/consultancies; lease financing for the purchase of equipment and wind power projects; line of credit for import of coal; policy for investment in equity of power projects; guidelines for funding grid connected solar thermal private sector power generation projects; policy for underwriting of debt; refinancing of debt of commissioned projects along with additional corporate loans for new-expansion-acquisition of projects; and financial assistance to distribution franchisee. It also provides non-fund based policies/products comprising guarantees, letter of comfort, and policy for guarantee for credit enhancement. In addition, the company offers non-fund based consultancy services. Power Finance Corporation Limited was incorporated in 1986 and is headquartered in New Delhi, India.

How the Company Makes Money

PFC generates revenue through several key streams. The primary source is interest income from loans and advances provided to power sector projects, which are often long-term financing solutions for infrastructure development. Additionally, PFC earns fees and commissions from advisory services and project management. The company also engages in capital market activities, raising funds through the issuance of bonds and debentures, which contribute to its capital base for lending. Significant partnerships with government agencies and state-owned utilities enhance its lending portfolio and mitigate risks, further stabilizing its revenue. Overall, the company's strategic focus on the growing energy sector positions it well for consistent earnings.

Power Finance Corporation Limited Financial Statement Overview

Summary

Power Finance Corporation Limited demonstrates strong revenue and net profit growth, with a robust income statement. However, high leverage and negative operating cash flow pose risks, necessitating cautious financial management.

Income Statement

Power Finance Corporation Limited shows a strong income statement with consistent revenue growth. The revenue increased from 198,661.1 million to 404,500.2 million over five years, reflecting a robust growth trend. Gross profit margins are perfect given the nature of revenue. The net profit margin has improved significantly, reaching 56.8% in 2025 from 35.9% in 2020, indicating enhanced profitability. However, reliance on debt might pose risks in the long term.

Balance Sheet

The balance sheet reflects a high leverage position with a debt-to-equity ratio of approximately 8.25 in 2025. While the company has shown an increase in stockholders' equity over the years, the substantial amount of debt relative to equity presents a potential risk. The equity ratio remains relatively low, highlighting the need for cautious management of financial obligations.

Cash Flow

Cash flow analysis reveals challenges, as the operating cash flow has been negative in recent years, and free cash flow has declined. Despite negative operating cash flows, the company has managed financing effectively, maintaining liquidity. The operating cash flow to net income ratio is concerning, indicating potential issues in cash generation from operations relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09T	1.06T	915.34B	275.17B	749.46B	714.78B
Gross Profit	422.44B	416.78B	335.66B	275.17B	302.37B	267.94B
EBITDA	409.95B	386.88B	336.42B	0.00	234.17B	199.16B
Net Income	243.14B	229.91B	197.61B	158.89B	140.15B	117.48B
Balance Sheet
Total Assets	0.00	11.78T	10.39T	8.96T	7.91T	7.76T
Cash, Cash Equivalents and Short-Term Investments	0.00	95.85B	33.89B	1.28B	9.14B	49.28B
Total Debt	0.00	9.72T	8.62T	7.51T	6.60T	6.89T
Total Liabilities	-1.55T	10.23T	9.05T	7.84T	6.95T	6.94T
Stockholders Equity	1.55T	1.18T	1.01T	841.58B	716.76B	607.67B
Cash Flow
Free Cash Flow	0.00	-931.10B	-981.44B	-748.40B	46.03B	-592.35B
Operating Cash Flow	0.00	-922.69B	-978.20B	-747.17B	49.04B	-591.43B
Investing Cash Flow	0.00	-23.12B	-34.09B	-16.94B	-5.47B	17.41B
Financing Cash Flow	0.00	942.58B	1.01T	755.37B	-83.71B	604.24B

Power Finance Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 375.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PFC, the sentiment is Negative. The current price of 375.9 is above the 20-day moving average (MA) of 354.16, above the 50-day MA of 361.89, and below the 200-day MA of 392.10, indicating a neutral trend. The MACD of 3.23 indicates Negative momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 55.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PFC.

Power Finance Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNB	75 Outperform	₹1.41T	8.29	―	2.40%	12.10%	12.93%
RECLTD	75 Outperform	₹957.44B	5.56	―	5.56%	18.51%	16.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.83T	18.59	―	1.08%	21.24%	22.61%
IRFC	66 Neutral	₹1.59T	23.19	―	1.52%	-0.41%	4.98%
PFC	65 Neutral	₹1.18T	4.79	―	4.62%	13.05%	16.78%

Power Finance Corporation Limited Corporate Events

Power Finance Corporation Launches Up to ₹5,000 Crore Secured NCD Public Issue

Power Finance Corporation Limited has approved a public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) with a base issue size of ₹500 crore and a green-shoe option to retain oversubscription up to ₹4,500 crore, taking the potential Tranche I size to ₹5,000 crore within an overall shelf limit of ₹10,000 crore. The issuance, to be listed on the National Stock Exchange, is scheduled to open on January 16, 2026 and close on January 30, 2026, and will be backed by a first pari-passu charge on book debts/receivables to maintain at least 100% security cover, offering investors a secured fixed-income product while providing the company with sizeable funding flexibility to support its lending operations and growth in the power sector.

Power Finance Corporation Schedules Investor Meeting

Power Finance Corporation Limited has announced a scheduled meeting with analysts and institutional investors on December 2, 2025. The meeting will be held in-person and will cover discussions based on information already available in the public domain, highlighting the company’s commitment to transparency and stakeholder engagement.

PFC Incorporates New Subsidiary for Maharashtra Power Transmission Project

Power Finance Corporation Limited has announced the incorporation of Raigad Power Transmission Limited, a wholly owned subsidiary of PFC Consulting Limited, to establish a new transmission system in Maharashtra. This move is part of a strategic initiative to enhance the power transmission infrastructure through a tariff-based competitive bidding process, with the subsidiary being transferred to the successful bidder upon completion of the bidding process.

Power Finance Corporation Releases Earnings Call Transcript

Power Finance Corporation Limited has released a transcript of its earnings call with investors and analysts, held on November 7, 2025. This announcement is part of the company’s ongoing commitment to transparency and regulatory compliance, as it continues to engage with stakeholders and provide insights into its financial performance and strategic direction.