PTC India Financial Services reported an operational turnaround in Q2 FY27, posting a profit of Rs 44 crore. The company achieved its first loan asset growth in 10 quarters, with loan assets reaching Rs 3,684 crore. Management highlighted a 36-quarter high in sanctions and expects further growth to hit a Rs 5,000 crore loan book target by year-end.
PTC India Financial Services Reports Q2 FY27 Profit of Rs 44 Crore
Loan assets reached Rs 3,684 crore with a 25% sequential growth.
Total income stood at Rs 114 crore while Gross Stage 3 assets declined to Rs 126 crore.
Reader Takeaway: Strong growth in sanctions and disbursements signals a business turnaround, though legacy NPA resolution remains critical.
What just happened
PTC India Financial Services (PFS) announced its Q2 FY27 results, reflecting a significant operational shift. The firm recorded its first loan asset growth in ten quarters, driven by a 25% sequential jump in total assets. Loan sanctions hit a 36-quarter high at Rs 3,098 crore, while disbursements reached a 19-quarter high of Rs 1,595 crore.
Why this matters
The company is pivoting back to its core infrastructure financing roots. Renewable energy assets now account for nearly 45% of the total loan book. A fresh funding line of Rs 200 crore from the Central Bank of India has bolstered liquidity, providing the necessary capital to chase the management's target of a Rs 5,000 crore loan book by the end of FY27.
Asset Quality Improvements
Asset quality metrics improved as Gross Stage 3 assets dropped from Rs 190 crore to Rs 126 crore. The company conducted a technical write-off for the Danu Wind Parks account, which had already been 75% provided for, as part of a clean-up exercise. Other Stage 3 assets, including the Kundli Manesar project, are currently under active monitoring.
Management Outlook
Management remains focused on a granular lending strategy with average ticket sizes ranging between Rs 100 crore and Rs 150 crore. The firm is working to improve its net interest margin (NIM) profile and expects borrowing costs to align with market rates over the next 12 months.
Risks to watch
Investors should monitor the ongoing resolution of legacy NPAs. While gross asset quality has improved, net Stage 3 assets faced pressure due to specific provisioning adjustments. Additionally, high-cost debt refinancing remains a headwind, though management anticipates this impact will soften as the portfolio expands.