Power Finance Corporation Ltd

About Power Finance Corporation Ltd

Power Finance Corporation Ltd (PFC) is a leading Indian public sector undertaking and a Non-Banking Financial Company (NBFC) dedicated to funding the power sector. It provides financial assistance across the entire power value chain, including generation, transmission, and distribution projects, playing a pivotal role in India's energy infrastructure development.

Key Financial Ratios

• P/E Ratio (TTM): Price to Earnings ratio shows how much an investor pays for every rupee of the company's earnings. Power Finance Corporation Ltd's P/E ratio (TTM) is 6.27, compared to the industry median of 9.72 and large cap median of 10.63.

• P/B Ratio: Price to Book ratio compares a company's market price to its book value per share. Power Finance Corporation Ltd's P/B ratio is 0.95, compared to the industry median of 2.03 and large cap median of 1.49.

• P/S Ratio: Price to Sales ratio compares a company's market value to its total revenue. Power Finance Corporation Ltd's P/S ratio is 1.09, compared to the industry median of 3.50 and large cap median of 2.72.

• PEG Ratio: PEG ratio adjusts the P/E ratio for expected earnings growth. Power Finance Corporation Ltd's PEG ratio is 0.28.

• EV/EBITDA Ratio: This ratio compares a company's enterprise value to its earnings before interest, tax, depreciation, and amortization. Power Finance Corporation Ltd's EV/EBITDA ratio is 10.09.

• Return on Equity (ROE): ROE measures how much profit a company generates from shareholders' invested capital. Power Finance Corporation Ltd's ROE is 25.31%.

• Return on Assets (ROA): ROA measures how efficiently a company converts its assets into net profit. Power Finance Corporation Ltd's ROA is 3.44%.

• Return on Capital Employed (ROCE): ROCE measures how efficiently a company generates profit from all the capital it employs. Power Finance Corporation Ltd's ROCE is 84.50%.

• Operating Margin: Operating margin shows what percentage of revenue remains after covering operating expenses. Power Finance Corporation Ltd's operating margin is 37.12%.

• Net Margin: Net margin shows what percentage of revenue converts into final net profit. Power Finance Corporation Ltd's net margin is 29.13%.

• Current Ratio: The current ratio measures a company's ability to pay short-term liabilities using short-term assets. Power Finance Corporation Ltd's current ratio is 12.38.

• Debt to Equity Ratio: This ratio shows the proportion of debt a company uses relative to shareholders' equity. Power Finance Corporation Ltd's debt-to-equity ratio is 0.

• Interest Coverage Ratio: This ratio shows how easily a company can pay interest on its outstanding debt from its operating earnings. Power Finance Corporation Ltd's interest coverage ratio is 1.62.

• Dividend Per Share (DPS): DPS shows the total dividend paid per share in the latest financial year. Power Finance Corporation Ltd's DPS is ₹0.

• Earnings Per Share (EPS): EPS shows how much profit is allocated to each outstanding share. Power Finance Corporation Ltd's EPS is 12.66.

(Source line: "Ratios as of 11 Aug 2026, based on last traded price of ₹381. Data sourced from BSE/NSE Exchange Filings & Public Terminal Data.")

Key Facts

• Founded: 1986
• Headquarters: New Delhi, Delhi
• Core Offerings: Project finance, Working Capital Loans, Equipment Finance, Lease Finance, Bridge Loans, refinancing of existing projects
• Stock Listing: NSE (PFC), BSE (532810)
• Promoter: Government of India

History of Power Finance Corporation Ltd

1986: Incorporated as Power Finance Corporation Limited under the Ministry of Power, Government of India. 1987: Commenced business operations to finance and develop the power sector. 1998: Conferred Mini-Ratna Category-I status. 2007: Became a listed company on NSE and BSE through its IPO. 2008: Conferred Navratna status. 2019: Acquired REC Limited, becoming the largest infrastructure financier in India. Present: Continues as a key financier for power projects, crucial for India's energy transition.

Business Segments and Revenue Mix

• State Sector Entities: Provides financial assistance to State Electricity Boards (SEBs), State Gencos, Transcos, and Discoms for various power projects, including generation, transmission, and distribution infrastructure. This constitutes the largest portion of PFC's loan book.
• Private Sector Entities: Funds private developers and companies involved in power generation (thermal, hydro, renewable), transmission lines, and distribution networks. This segment has been growing, supporting capacity additions and efficiency improvements.
• Focus Areas: While not distinct segments, PFC actively supports renewable energy projects, smart grid initiatives, and environmental upgrade projects within both state and private sectors, aligning with India's energy transition goals.

Key Personnel

Parminder Chopra (CMD - Chairman & Managing Director): First woman to be appointed CMD of India's largest NBFC. She previously served as Director (Finance) at PFC, bringing extensive experience in the power and financial sectors, driving growth and strategic initiatives.

Subsidiaries and Associate Companies

• REC Limited
• PFC Consulting Limited
• PFC Green Energy Limited

Corporate Actions

Acquisition of REC Limited (2019): PFC acquired Government of India's 52.63% stake in REC Ltd for approximately ₹14,500 crore. Bonus Issue (September 2023): 1:4 bonus issue.

References

1. Annual Report FY2023-24
2. Exchange Filings (NSE/BSE)
3. Financial Results Announcement
4. PFC Investor Relations website