In Week of Mar 28, 2026, Power Finance Corporation Ltd (Finance - PSU Lending) is outperforming Nifty 500 with +23.3% relative strength. Fundamentals: Average. On a 7-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Feb 22, 2026
What: ₹100,297 cr disbursement in Q3 driving interest income growth
Impact: +₹10000 Cr revenue
“Consolidated loan asset book rose 12% YoY to ₹1,069,436 cr, supported by continued momentum in renewables and distribution lending”
What: 18.2% CAR provides headroom for 15-18% loan book expansion
Impact: +₹15000 Cr revenue
“Shareholder funds up 16.4% YoY to ₹1,17,738.35 cr”
What: Waste-to-energy project recoveries could yield ₹500-800 cr write-backs
Impact: +₹650 Cr revenue
“Management actively pursuing recoveries from Stage 3 accounts”
Earnings deceleration risks from management commentary
Trigger: Further 10bps NIM compression
Impact: -20 bps margin impact
Management view: Gross profit margin down from 39.43% in Q1 to 36.35% in Q3 FY26 due to elevated borrowing costs
Monitor: Cost of funds vs asset yield
Trigger: Sectoral stress spreading beyond current projects
Impact: -18 bps margin impact
Management view: Some technological issues in waste-to-energy project causing slippage into Stage 3 account
Monitor: Fresh slippages in renewable segment
Trigger: Credit cost rising to 0.60%
Impact: -18 bps margin impact
Management view: We don't have any such -- we have not funded any such asset with PPA issues
Monitor: Credit cost ratio trajectory
Key quotes from recent conference calls
“Gross profit margin for Q3 FY26 stood at 36.35%, down from 39.43% in Q1 FY26, underscoring the impact of elevated borrowing costs on profitability — Management Commentary”
“There are some technological issues in the project, which is how we have seen that the slippage into the Stage 3 account — Ms. Parminder Chopra, CMD”
“Consolidated loan asset book rose 12% YoY to ₹1,069,436 cr, supported by continued momentum in renewables and distribution lending — Management Commentary”
“Shareholder funds of ₹1,17,738.35 cr, up from ₹1,01,146.77 cr in March 2024, representing a 16.40% year-on-year increase — Management Commentary”
Forward-looking targets from management for FY26
Revenue Growth Target
10%
Implied PAT Growth
5%
OPM Guidance
35%
Credit Growth Target
12%
NIM Guidance
2.8%
Key Milestones
• 12% loan book growth target
• NIM stabilization efforts
• Asset quality monitoring
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +9% | +12% | Decelerating |
| PAT (Net Profit) | +6% | +18% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Power Finance Corporation Ltd's latest quarterly results (Dec 2025) show
Power Finance Corporation Ltd's profit is growing with an stable trend.
Power Finance Corporation Ltd's revenue growth trend is decelerating.
Power Finance Corporation Ltd's asset quality trend is improving.
Power Finance Corporation Ltd's long-term compounding rates
Power Finance Corporation Ltd's earnings growth is stable with mixed signals on a sequential basis.
Power Finance Corporation Ltd's trailing twelve month (TTM) performance
Power Finance Corporation Ltd appears significantly undervalued based on our fair value analysis.
Power Finance Corporation Ltd's current PE ratio is 5.2x.
Power Finance Corporation Ltd's current PE is 5.2x.
Power Finance Corporation Ltd's price-to-book ratio is 1.0x.
Power Finance Corporation Ltd is rated Average with a fundamental score of 59.93/100. This score is calculated from objective financial metrics
Power Finance Corporation Ltd has a debt-to-equity ratio of N/A.
Power Finance Corporation Ltd's return ratios over recent years
Power Finance Corporation Ltd's operating cash flow is negative (FY2025).
Power Finance Corporation Ltd's current dividend yield is 3.99%.
Power Finance Corporation Ltd's shareholding pattern (Dec 2025)
Power Finance Corporation Ltd's promoter holding has remained stable recently.
Power Finance Corporation Ltd has been outperforming Nifty 500 for 7 consecutive weeks, indicating building momentum.
Power Finance Corporation Ltd is an established outperformer with 7 weeks of consecutive Nifty 500 outperformance.
Power Finance Corporation Ltd has 3 key growth catalysts identified from recent earnings analysis
Power Finance Corporation Ltd has 3 key risks worth monitoring
In Q3 FY26, Power Finance Corporation Ltd's management highlighted
Power Finance Corporation Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Power Finance Corporation Ltd may be worth studying
Power Finance Corporation Ltd investment thesis summary:
Power Finance Corporation Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
