Power Finance Corporation Ltd. Q2 FY27 results

The quarter, explainedfrom the filing and the statements

Power Finance Corporation Ltd. reported revenue of ₹29,044 cr for July to September 2026, +0.5% on the year and +1.8% on the quarter. That is slower than this quarter has grown in recent years (+13.6% on average). Over the last four quarters revenue comes to ₹1.16 lakh cr, +1.8% on the four before.

Operating profit (EBITDA) was ₹27,665 cr, a margin of 95.3%, +49 bps on the year and −463 bps on the quarter. Over the last 8 quarters the margin has ranged from 36.0% to 99.9%, averaging 59.5%. Operating costs grew −8.9%, broadly with revenue, so operating profit kept pace with sales.

Net profit was ₹7,682 cr, −2.0% on the year and −14.6% on the quarter, with earnings per share of ₹18.29. Profit before other income, one-offs and tax fell 4.5%, so the profit growth came from the business itself. The tax rate of 21% is in line with its recent average. Profit over the last four quarters totals ₹33,489 cr, +1.7% on the four before.

Of the 11 companies in Power and utilities that have reported Q2 FY27 so far, Power Finance Corporation Ltd. ranks 11th on revenue growth; the sector median is +22.8%. Its margin moved +49 bps on the year against a sector median of +66 bps.

Most power earnings are regulated returns on equity, with fuel costs passed through, so revenue can swing with fuel prices while profit moves far less.

On earnings per share of ₹79.82 over the last four quarters, the stock at ₹334.70 trades at 4.2 times trailing earnings.

Questions to askeach one with its numbers and source

Could not run on this quarter: Exceptional items that recur, Inventory against sales, Earlier promises against delivery. The filing did not carry these lines.

Where the profit change came fromSep '25 → Sep '26

Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.

The half year: balance sheet and cashfiled with Q2

Operating cash flow was 0.08× profit. Receivables at 1 days of sales (−0 days against the last year end).

From the filingauditor, IPO money, related parties, promoters

Inside the profitother income, one-offs, tax

Other income, line by line

• Excess Liabilities written back (6M consolidated): 5.46 crore (one-off)note 26 of consolidated results
• Miscellaneous Income (6M consolidated): 220.79 crore (recurring)note 26 of consolidated results

Tax: Consolidated tax expense of ₹2,099.80 crore (current tax ₹2,115.76 crore, deferred tax credit ₹15.96 crore) on Profit before tax of ₹9,781.31 crore. Refund of ₹416.09 crore for FY 2016-17 received, of which ₹282.25 crore is under contest.

Power vitalsthe numbers this business is run on

Checks this sector needs

What management saidquoted, with source

• The Board of Directors of Power Finance Corporation Ltd. in its meeting held today i.e. 04.11.2026 have inter alia considered and approved Declaration of second interim [email protected]/- per equity sharepress release, outcome letter p.1
• Pursuant to the Scheme of Merger of REC Limited into the Company, as approved by the Board of Directors on June 28, 2026, the Company has received Reserve Bank of India's no-objection certificate on October 15, 2026press release, note 7 of consolidated results
• During the quarter, a refund of Rs. 416.09 crore pertaining to FY 2016-17 was received pursuant to the order passed by the Income Tax Department u/s 154 read with Section 143(1) of the Income-tax Act, 1961.press release, note 9 of consolidated results
• Capital Risk Adjusted Ratio (CRAR) of the Company as at 30.09.2026 is 23.89% comprising of Tier I Capital of 22.61% and Tier II Capital of 1.28%.press release, note 10 of standalone results

Segments

Every quartersame rules, every quarter