Synopsis: With the stock delivering a 3-year compounded return of 48 percent, a PSU stock surged by 3 percent after announcing a Rs 3.25 dividend and approving a Rs 1.6 lakh crore fundraising plan for FY27.

A large-cap stock engaged in power sector financing and infrastructure funding surged after announcing a Rs 3.25 interim dividend and approving a Rs 1.6 lakh crore fundraising plan for FY27, aimed at supporting growth through diversified borrowings including domestic, foreign, short-term loans and commercial papers.

With a market cap of about Rs 1.4 lakh Cr, Power Finance Corporation Ltd saw its stock hit an intraday high of Rs 419, which is 3 percent higher than the previous close of Rs 406. The company stock has given a compounded return of 48 percent in the last three years.

News

The board has approved an interim dividend of Rs 3.25 per equity share with a face value of Rs 10, rewarding shareholders and reflecting stable financial performance. The record date has been fixed as March 23, 2026, to determine eligible shareholders entitled to receive the dividend payout for the current financial period.

In addition, the board has cleared a massive Rs 1,60,000 crore fundraising plan for FY 2026–27, aimed at supporting growth and capital requirements. The plan includes Rs 1,10,000 crore through long-term domestic borrowings, Rs 20,000 crore via foreign currency borrowings, Rs 20,000 crore in short-term borrowings, and Rs 10,000 crore through commercial papers.

Loan Asset Mix

In QFY26, Power Finance Corporation Ltd reported gross loan assets of Rs 5,61,209 crore up from Rs 4,93,363 crore of last year. Generation loan stood at Rs 2,58,601 crore, while distribution was at Rs 2,27,629 crore. The loan mix comprised T&D with 48 percent, conventional 31 percent, renewables 15 percent, infrastructure 3 percent, and the rest 3.66 percent, was for other loan assets. 

Business & Financial Overview

Power Finance Corporation Ltd (PFC) is a leading Indian financial institution and a Maharatna CPSE. It serves as the backbone of the country’s energy sector by providing strategic funding and consultancy for power generation, transmission, and distribution projects, increasingly focusing on renewable energy and infrastructure development.

In the latest quarter, the company saw a YoY revenue growth of 9 percent, going from Rs 26,798 Cr in Q3FY25 to Rs 29,095 Cr in Q3FY26, while the QoQ went up by 1 percent from Rs 28,890 Cr in Q2FY26. The YoY Net Profits growth is at 6 percent, going from Rs 7,760 Cr in Q3FY25 to Rs 8,212 Cr in Q3FY26, while the QoQ growth stood at 5 percent from Rs 7,834 Cr in Q2FY26.

The company has a 3 year sales CAGR of 12 percent, while the TTM is at 14 percent. The company’s 3 year profit CAGR is at 18 percent, while the TTM number is at 13 percent. The company also has a ROCE of 10 percent and a ROE of 21 percent.

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