PFC profit rises 4.66% QoQ as costs and tax rate fall
Consolidated operating margin reached 99.88% as expenses fell 91.66% QoQ, while revenue slipped 1.36%.
Filed 07 Aug 2026, 20:20 IST · after market close · Power Finance Corporation Ltd (PFC)
Key takeaways
- Consolidated net profit rose 4.66% QoQ to Rs 8997.92 cr as expenses fell 91.66% and the tax rate dropped 2.4 percentage points.
- Operating margin expanded 1.32 percentage points QoQ to 99.88%, helped by costs falling much faster than revenue.
- Net profit was up only 0.18% YoY despite an 83.61% decline in expenses, while other income contributed just 0.32% of pre-tax profit.
Price around the results
Lower costs lift Q1FY27 profit despite softer revenue
PFC's consolidated revenue declined 1.36% QoQ and was broadly flat YoY at -0.04%, but net profit increased 4.66% sequentially and 0.18% YoY. Expenses fell 91.66% QoQ and 83.61% YoY, more than offsetting the revenue movement. Interest expense also declined 0.48% QoQ, while it rose 0.27% YoY.
Operating margin rises for a third straight quarter
Operating margin expanded 1.32 percentage points QoQ and 0.62 percentage points YoY to 99.88%, because costs fell much faster than revenue. This extends the margin recovery from 94.76% in Q2FY26 through 96.46% in Q3FY26 and 98.56% in Q4FY26. The margin was 35.45 percentage points above the 64.43% median for the 55 Financial Services peers that had reported.
Profit quality was not dependent on other income
Other income accounted for only 0.32% of consolidated pre-tax profit, so it was not a material support to earnings. The QoQ tax-rate decline of 2.4 percentage points helped net profit, but the YoY tax rate increased 0.29 percentage points, indicating no tax-rate benefit in the annual comparison.
No immediate market reaction after post-close filing
The results were filed after market close, so there is no post-results market reaction to assess yet. After the last eight results, the stock rose six times and fell twice, with a median absolute move of 1.48%, making that the relevant historical reaction range.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹28,527 cr | ₹28,920 cr | -1.36% | -0.04% |
| Other income | ₹36 cr | ₹-63 cr | — | -59.60% |
| Expenses | ₹35 cr | ₹416 cr | -91.66% | -83.61% |
| Operating profit | ₹28,492 cr | ₹28,504 cr | -0.04% | +0.58% |
| Operating margin (%) | 99.88% | 98.56% | — | — |
| Interest | ₹17,250 cr | ₹17,333 cr | -0.48% | +0.27% |
| Depreciation | ₹18 cr | ₹16 cr | +15.70% | +26.18% |
| Profit before tax | ₹11,260 cr | ₹11,092 cr | +1.52% | +0.55% |
| Tax | ₹2,262 cr | ₹2,494 cr | -9.30% | +2.01% |
| Net profit | ₹8,998 cr | ₹8,598 cr | +4.66% | +0.18% |
| EPS (₹) | ₹21.25 | ₹21.21 | +0.19% | +2.11% |
Operating margin of 99.88% compares with a Financial Services sector median of 64.43% across 55 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin holds above 99.88%.
- Whether revenue momentum improves from the -1.36% QoQ change.
- Whether the tax rate remains below the 22.49% recorded in Q4FY26.