Power Finance Corporation Posts Q2 Standalone Profit of Rs 4,987 Crore

Standalone Profit After Tax stood at Rs 4,986.71 crore, with a second interim dividend of Rs 4.10 per share declared.

Reader Takeaway: Strong quarterly earnings and dividend payout provide stability, while the ongoing REC merger process remains the key monitorable.

What just happened

Power Finance Corporation (PFC) released its financial results for the quarter ended September 30, 2026. The company reported a standalone profit after tax of Rs 4,986.71 crore, up from Rs 4,461.94 crore in the same period last year. On a consolidated basis, the company reported a net profit of Rs 7,681.51 crore. The board also declared a second interim dividend of Rs 4.10 per equity share (face value Rs 10). The record date for this payout is set for November 17, 2026.

Why this matters

The declaration of the second interim dividend highlights the company's commitment to consistent shareholder returns. Meanwhile, the financial growth signals operational health in the power financing sector. Investors are also closely tracking the progress of the merger with REC Limited, which is viewed as a significant strategic consolidation for both entities.

What changes now

PFC has made tangible progress on the merger with REC Limited. The company has obtained a No-Objection Certificate from the Reserve Bank of India and similar letters from the BSE and NSE. The merger is now moving toward final statutory approvals and sanction from the Ministry of Corporate Affairs.

Risks to watch

The primary risk factor remains the dependency on external regulatory and statutory approvals for the REC merger. Additionally, while current profitability is robust, investors should monitor asset quality metrics, specifically the status of stage 3 loans and the company's impairment loss coverage ratios as reported in the detailed notes.

What to track next

Shareholders should monitor the payment of the dividend, scheduled on or before December 4, 2026. Furthermore, future filings regarding the progress of the merger milestones are essential for gauging long-term structural changes at the firm.