Power Finance Corporation Limited (PFC) AI Stock Analysis

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Power Finance Corporation Limited

(NSE:PFC)

Select Model

Rating:76Outperform

Price Target:INR 390.00▲(13.04% Upside)

Action:upgraded

Date:11/12/26

Strong financial performance from income growth and balance sheet improvements is the primary driver, complemented by attractive valuation with low P/E and high yield; technical analysis provides mixed but slightly positive signals.

Positive Factors

Revenue and margin expansionStrong multi-year revenue expansion alongside higher net margins indicates improving earnings capacity and operating performance. If these gains persist, PFC should have greater ability to support lending growth, absorb credit costs, and compound profits over the next several quarters.

Negative Factors

High financial leverageVery high leverage leaves PFC more exposed to refinancing pressure, funding costs, and adverse credit-cycle conditions. It also reduces the margin for error if asset quality weakens, because a large debt base must continue to be serviced while equity provides a comparatively smaller buffer.

Power Finance Corporation Limited (PFC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.14T
Dividend Yield: 5.44%
Average Volume (3M): 1.14M
Price to Earnings (P/E): 4.3
Beta (1Y): 1.18
Revenue Growth: 1.62%
EPS Growth: 6.39%
Country: India
Employees: 552
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Power Finance Corporation Limited Business Overview & Revenue Model

Company Description

Power Finance Corporation Limited (PFC), an Indian non-banking financial institution, dedicates its services to the nation's power sector, providing a comprehensive range of financial products, advisory support, and related solutions. The company's e...

How the Company Makes Money

PFC makes money primarily through interest income from lending to power-sector borrowers. Its core business model is to raise funds (including through domestic and international borrowings and debt market instruments) and deploy those funds as loans...

Power Finance Corporation Limited Financial Statement Overview

Summary

Robust revenue growth and expanding net margins in income statement, improved debt-to-equity on balance sheet, despite volatile operating cash flows.

Income Statement

85Very Positive

Balance Sheet

75Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.13T	1.13T	1.06T	915.34B	745.34B	749.46B
Gross Profit	604.37B	428.02B	416.78B	335.66B	275.17B	302.37B
EBITDA	780.10B	429.13B	386.88B	336.42B	265.48B	234.17B
Net Income	263.38B	259.01B	229.91B	197.61B	158.89B	140.15B
Balance Sheet
Total Assets	12.74T	12.45T	11.78T	10.39T	8.96T	7.91T
Cash, Cash Equivalents and Short-Term Investments	40.78B	46.73B	95.85B	33.89B	1.28B	9.14B
Total Debt	10.19T	10.13T	9.72T	8.62T	7.51T	6.60T
Total Liabilities	10.82T	10.71T	10.23T	9.05T	7.84T	6.95T
Stockholders Equity	1.47T	1.33T	1.18T	1.01T	841.58B	716.76B
Cash Flow
Free Cash Flow	194.92B	550.63B	-931.10B	-981.44B	-748.40B	46.03B
Operating Cash Flow	195.02B	554.00B	-922.69B	-978.20B	-747.17B	49.04B
Investing Cash Flow	563.50M	-633.46B	-23.12B	-34.09B	-16.94B	-5.47B
Financing Cash Flow	-200.00B	92.65B	942.58B	1.01T	755.37B	-83.71B

Power Finance Corporation Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price345.00

Price Trends

50DMA335.26Positive

100DMA367.21Negative

200DMA388.92Negative

Market Momentum

MACD-1.04Negative

RSI62.83Neutral

STOCH91.52Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PFC, the sentiment is Neutral. The current price of 345.00 is above the 20-day moving average (MA) of 327.36, above the 50-day MA of 335.26, and below the 200-day MA of 388.92, indicating a neutral trend. The MACD of -1.04 indicates Negative momentum. The RSI at 62.83 is Neutral, neither overbought nor oversold. The STOCH value of 91.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PFC.

Power Finance Corporation Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PFC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PFC	76Outperform	INR 1.12T	4.32	―	5.44%	1.62%	6.39%
IN:HUDCO	71Outperform	INR 338.42B	7.70	―	3.79%	21.60%	59.00%
IN:IREDA	63Neutral	INR 336.29B	17.12	―	1.12%	16.69%	10.98%
IN:RECLTD	62Neutral	INR 802.74B	5.43	―	5.50%	-2.74%	-12.39%
IN:IRFC	59Neutral	INR 1.09T	15.37	―	2.53%	13.38%	7.86%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:PFS	55Neutral	INR 16.46B	9.28	―	―	-21.30%	-48.91%

* General Sector Average

Performance Comparison

IN:PFC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PFC	Power Finance Corporation Limited	345.00	-10.40	-2.93%
IN:HUDCO	Housing & Urban Development Corp. Ltd.	171.20	-45.49	-20.99%
IN:IREDA	Indian Renewable Energy Development Agency Ltd.	120.80	-26.98	-18.25%
IN:IRFC	Indian Railway Finance Corp. Ltd.	86.90	-30.80	-26.17%
IN:PFS	PTC India Financial Services Limited	25.90	-10.15	-28.16%
IN:RECLTD	REC Limited	310.15	-31.51	-9.22%

Power Finance Corporation Limited Corporate Events

Power Finance Corporation Secures Exchange Nod for Merger with REC

Oct 19, 2026

Power Finance Corporation Limited has announced that it has received no-objection letters from both BSE Limited and the National Stock Exchange of India for the proposed merger of REC Limited into Power Finance Corporation. The move marks a key regul...

PFC Receives RBI Nod for Proposed Merger with REC

Oct 15, 2026

Power Finance Corporation Limited has announced that it received a no-objection certificate from the Reserve Bank of India on October 15, 2026 for the proposed merger of REC Limited into Power Finance Corporation. The scheme of merger, framed under t...

Power Finance Corporation Extends Trading Window Closure Under Insider Trading Norms

Sep 25, 2026

Power Finance Corporation Limited has announced that its trading window for equity shares and listed debt securities, including tax-free bonds, will remain closed until further orders under SEBI’s Prohibition of Insider Trading Regulations, 2015. The...

Power Finance Corporation appoints joint statutory auditors for FY 2026-27

Sep 9, 2026

Power Finance Corporation Limited has announced a change in its statutory auditors for the financial year 2026-27, following the appointment made by the Comptroller and Auditor General of India. Thakur Vaidyanath Aiyar & Co and Mehra Goel & Co have b...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 12, 2026

Power Finance Corporation Limited AI Stock Analysis