PFC Q1 FY26 results preview: What to expect

Power Finance Corporation (PFC), India’s largest power-sector NBFC, will report its Q1 FY26 results on August 6, 2025. Coming off a record-setting FY25 and a strong March quarter, expectations are high for another solid quarter marked by robust profitability, improving asset quality, and steady loan growth. This preview examines PFC’s recent performance, outlines what to expect in Q1, compares it with peers like REC, and reveals what its Value Research Stock Ratings indicate about its long-term potential. FY25 Recap: A Record Year for PFC PFC closed FY25 with a record consolidated net profit of Rs 30,514 crore, up 15 per cent YoY. The March 2025 quarter alone contributed Rs 8,358 crore in profit, driven by: 41 per cent YoY growth in Net Interest Income (NII) to Rs 12,681 crore A sharp drop in consolidated gross NPAs to 1.64 per cent and net NPAs to 0.38 per cent, thanks to resolutions like KSK Mahanadi Loan book expansion of around 10–12 per cent YoY, reaching Rs 11 lakh crore in consolidated assets This strong showing, especially on asset quality and profitability, has set a high benchmark as the new fiscal year begins. Q1 FY26 Expectations: Steady Earnings and Cleaner Books Given REC’s already-declared