The Maharatna public sector lender reported a 2.1% year-on-year increase in net profit to ₹7,012 crore for the quarter ended June 30, 2026, compared with ₹6,866 crore in the corresponding period last year.
However, net interest income (NII)—the difference between interest earned on loans and interest paid on borrowings—declined 3.3% year-on-year to ₹10,696 crore from ₹11,061 crore.
Profit holds up despite lower interest income
The June-quarter results presented a mixed picture.
While the company’s core lending income declined, it still reported higher net profit during the quarter.
NII is one of the most closely watched metrics for lenders because it reflects earnings from their core financing business. A decline in NII can indicate pressure on lending spreads or borrowing costs, making sustained profit growth more challenging.
Loan book remains strong
Despite the decline in NII, PFC continued to expand its lending portfolio.
The company’s consolidated loan asset book stood at ₹11.6 lakh crore as of June 30, 2026, underscoring its position as one of India’s largest infrastructure financiers.
The company also maintained its leadership in financing clean energy projects. According to information shared by the company, the renewable energy loan book stood at ₹1.63 lakh crore at the end of the June quarter, making PFC the country’s largest renewable energy financier.
Interim dividend declared
The board declared an interim dividend of ₹3.90 per equity share of face value ₹10 for FY27, subject to applicable tax deductions.
The company has fixed August 27, 2026, as the record date to determine eligible shareholders. The dividend will be paid on or before September 6, 2026.
What to watch
The June-quarter results suggest PFC’s profitability remained resilient despite pressure on net interest income.
Going forward, investors are likely to watch trends in lending growth, interest margins and asset quality, alongside the company’s continued focus on financing India’s power and renewable energy sectors.
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First Published: Aug 7, 2026 10:24 PM IST
