PFC profit drops 14.63% QoQ as margin reverses from Q1 peak
Consolidated revenue grew +1.81% QoQ, but expenses rose +3,875.90% and interest increased +4.68%, reducing operating margin by 4.63 percentage points.
Filed 04 Nov 2026, 16:59 IST · after market close · Power Finance Corporation Ltd (PFC)
Key takeaways
- Consolidated net profit fell -14.63% QoQ to Rs 7,681.51 cr as interest rose +4.68% and operating margin narrowed 4.63 percentage points.
- Year on year, revenue grew only +0.53% while net profit fell -1.95%, despite expenses declining -8.92%.
- At 95.25%, operating margin remained 43.59 percentage points above the 51.66% median for 93 Financial Services peers.
Price around the results
Revenue was flat year on year, but profit weakened
PFC's consolidated revenue increased only +0.53% year on year, while net profit declined -1.95% to Rs 7,681.51 cr. The sequential comparison was weaker: revenue grew +1.81%, but net profit fell -14.63% as interest costs increased +4.68%. This left EPS down -13.93% QoQ to Rs 18.29.
Expense surge and higher interest drove the margin reversal
Expenses rose +3,875.90% QoQ against revenue growth of +1.81%, narrowing operating margin by 4.63 percentage points. Interest costs also rose +4.68% QoQ, while the tax rate increased 1.38 percentage points to 21.47%, adding to the pressure below operating profit. Other income contributed only 1.94% of pre-tax profit, so it was not a major support to earnings quality.
Margin remains high, but Q1FY27's recovery was interrupted
Operating margin improved 0.49 percentage points year on year because expenses fell -8.92% while revenue grew +0.53%. Sequentially, however, the margin dropped from 99.88% in Q1FY27 to 95.25%, reversing part of the improvement from 94.76% in Q2FY26. It remained 43.59 percentage points above the 51.66% median among 93 Financial Services peers that had reported.
No post-results market move is covered yet
The consolidated results were filed after market close, so there is no post-results share-price reaction to assess yet. Across the stock's eight recent result reactions, it rose five times and fell three times, with a median absolute move of 1.48%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹29,044 cr | ₹28,527 cr | +1.81% | +0.53% |
| Other income | ₹190 cr | ₹36 cr | +423.13% | +1629.96% |
| Expenses | ₹1,379 cr | ₹35 cr | +3875.90% | -8.92% |
| Operating profit | ₹27,665 cr | ₹28,492 cr | -2.90% | +1.06% |
| Operating margin (%) | 95.25% | 99.88% | — | — |
| Interest | ₹18,058 cr | ₹17,250 cr | +4.68% | +4.29% |
| Depreciation | ₹16 cr | ₹18 cr | -10.29% | +5.29% |
| Profit before tax | ₹9,781 cr | ₹11,260 cr | -13.13% | -2.74% |
| Tax | ₹2,100 cr | ₹2,262 cr | -7.18% | -5.54% |
| Net profit | ₹7,682 cr | ₹8,998 cr | -14.63% | -1.95% |
| EPS (₹) | ₹18.29 | ₹21.25 | -13.93% | +5.11% |
Operating margin of 95.25% compares with a Financial Services sector median of 51.66% across 93 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 95.25% after the 4.63-percentage-point QoQ decline.
- Whether interest-cost growth moderates from +4.68% QoQ.
- Whether revenue growth improves from +0.53% year on year.