Power Finance Corporation reports marginal growth in net profit for June quarter, announces higher interim dividend, as its proposed merger with REC Ltd. advances through regulatory approvals, signalling strategic consolidation in Indian state-owned finance sector.
Power Finance Corporation Ltd said its consolidated net profit for the quarter ended June 30, 2026, edged up to Rs 8,997.92 crore from Rs 8,981.45 crore a year earlier, underscoring a period of broadly flat performance even as its earnings per share improved. Revenue from operations was Rs 28,526.86 crore, little changed from the year-earlier quarter, while total consolidated income eased slightly and expenses also fell, helping contain pressure on margins.
The state-run lender also declared a first interim dividend of Rs 3.90 per equity share for 2026-27. According to the company, August 27, 2026, is the record date for determining eligible shareholders, with payment due on or before September 6, 2026. The payout is higher than the Rs 3.70 interim dividend PFC announced in the same quarter a year earlier, as reported by Moneycontrol and NDTV Profit.
On a standalone basis, PFC posted a net profit of Rs 4,745.40 crore for the quarter, up 5.42% from the same period last year, while standalone revenue rose to Rs 13,993.13 crore. The numbers suggest that core lending operations remained resilient even as consolidated growth slowed.
The latest results come as PFC advances a proposed merger with REC Ltd. The board approved a draft absorption scheme on June 28, 2026, with an exchange ratio of 88 PFC shares for every 100 REC shares. LiveMint reported that the plan has received Presidential approval, but it still needs further statutory, regulatory and shareholder clearances before taking effect, with an appointed date set for April 1, 2027 or another mutually agreed date.
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