PFC Reports Record FY26 Performance with Highest‑Ever Profit and Improved Asset Quality
PAT crosses ₹20,000 crore milestone; consolidated Gross NPA falls below 1% as company strengthens capital position
POSTED BY:- Poonam S. Juthani
DT:-15/05/2026
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New Delhi, May 13, 2026 — Power Finance Corporation (PFC), India’s largest NBFC group, announced its financial results for FY26, reporting its highest‑ever annual profit alongside significant improvement in asset quality and capital strength.
Consolidated Performance
On a consolidated basis, the PFC Group reported a Profit After Tax (PAT) of ₹33,625 crore for FY26, registering a 10% increase from ₹30,514 crore in FY25. The Group’s total balance sheet size exceeded ₹12.40 lakh crore, while consolidated net worth rose 12% year‑on‑year to ₹1,73,441 crore as of March 31, 2026.
Asset quality showed marked improvement, with consolidated Gross NPA reducing to 0.66% in FY26 from 1.64% in FY25. Consolidated Net NPA declined further to 0.13%, compared to 0.38% in the previous year, driven by active resolution efforts and strengthened recovery mechanisms.
Standalone Performance
On a standalone basis, PFC reported its highest‑ever annual PAT of ₹20,051 crore, reflecting a 16% growth over ₹17,352 crore in FY25. With this, PFC continues to remain the highest profit‑making NBFC in India.
The Board has proposed a final dividend of ₹3.95 per share, taking the total dividend for FY26 to ₹18.55 per share.
PFC’s standalone net worth crossed the ₹1 lakh crore milestone, standing at ₹1,02,532 crore as of March 31, 2026, marking a 13% increase year‑on‑year. Supported by strong disbursements of ₹1,65,414 crore during FY26, the company’s loan book grew to ₹5,80,115 crore.
Capital Strength and Asset Quality
The company maintained a strong capital position, with Capital Adequacy Ratio (CRAR) at 23.44% and Tier‑1 capital at 21.93%, significantly above regulatory requirements.
Asset quality strengthened further following the successful resolution of TRN Energy and Sinnar Thermal during the year. Standalone Net NPA improved to 0.15% in FY26 from 0.39% in FY25, while Gross NPA reduced to 1.09%, down by 85 basis points year‑on‑year.
Leadership Commentary
Parminder Chopra, Chairperson and Managing Director, highlighted FY26 as a year of strong performance and important milestones despite a challenging global environment. She noted that the proposed merger of PFC and REC Limited represents a significant step toward creating a stronger institution for the power sector, enabling greater scale, improved efficiencies, and capital synergies.
She further stated: “PFC remains committed to supporting the evolving needs of the power sector, particularly in energy transition and emerging technologies, backed by our strong capital base.”
The company’s Director (Finance) added that FY26 represented another year of resilient and record performance, with net profit crossing the ₹20,000 crore mark for the first time and asset quality improving to its strongest levels.
Conclusion
With record profitability, strengthened asset quality, and robust capital adequacy, PFC has reinforced its leadership position in India’s NBFC sector. The company’s continued focus on resolution, digital transformation, and energy transition initiatives positions it strongly to support India’s evolving power sector and contribute to sustainable economic growth.
