Mumbai: State-owned Power Finance Corporation Limited (PFC) reported a 1.95 percent year-on-year decline in consolidated net profit to Rs 7,681.51 crore for the second quarter of financial year 2026-27, compared with Rs 7,834.39 crore in the corresponding quarter last year.
The company's consolidated revenue from operations increased marginally to Rs 29,044.48 crore from Rs 28,890.24 crore a year earlier, according to its stock exchange filing dated November 4, 2026.
Revenue Performance
PFC's consolidated total income rose to Rs 29,234.42 crore during the July-September quarter, compared with Rs 28,901.10 crore in the year-ago period.
Interest income increased to Rs 28,338.76 crore from Rs 28,069.47 crore, while other operating income climbed to Rs 345.13 crore from Rs 138.06 crore.
However, fees and commission income declined to Rs 315.55 crore from Rs 654.03 crore.
Profit Pressure
The company's consolidated profit before tax declined to Rs 9,781.31 crore from Rs 10,057.36 crore in Q2 FY26.
Finance costs increased to Rs 18,057.75 crore from Rs 17,313.68 crore, while total expenses rose to Rs 19,453.12 crore from Rs 18,843.74 crore.
Impairment on financial instruments stood at Rs 172.38 crore, compared with Rs 381.69 crore in the corresponding quarter last year.
Sequential Performance
On a quarter-on-quarter basis, consolidated net profit declined 14.63 percent from Rs 8,997.92 crore reported in Q1 FY27.
However, revenue from operations increased 1.81 percent from Rs 28,526.86 crore in the preceding quarter.
Total income also increased from Rs 28,563.17 crore to Rs 29,234.42 crore.
Half-Year Earnings
For the six months ended September 30, 2026, consolidated net profit stood at Rs 16,679.43 crore, compared with Rs 16,815.84 crore in the corresponding period last year.
Half-year revenue from operations increased to Rs 57,571.34 crore from Rs 57,429.28 crore.
Dividend Announcement
PFC's board declared a second interim dividend of Rs 4.10 per equity share for FY27, representing 41 percent of the Rs 10 face value.
The company fixed November 17, 2026, as the record date, with dividend payments scheduled on or before December 4, 2026.
Merger Development
PFC also disclosed that its proposed merger with REC Limited received the Reserve Bank of India's no-objection certificate on October 15, 2026, followed by no-objection letters from BSE and NSE on October 19.
The merger remains subject to other statutory, regulatory and shareholder approvals.
Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.
