Synopsis:
The shares of PTC India Financial Services Ltd skyrocketed 15 percent in today’s trading session due to its announcement of Q2 FY26 results where an 86 percent YoY growth in PAT was achieved due to the legacy issue resolution.

The Shares of this NBFC which is registered with RBI and holds the status of Infrastructure Finance Company, along with providing equity/debt financing solutions to the energy value chain, were in the spotlight when the company declared its Q2 results and highlighted 86 percent growth in its PAT.

With a market capitalization of Rs 2,562 crore , the shares of PTC India Financial Services Ltd jumped more than 15 percent in today’s session and made a high of Rs 40.38 compared to its previous day’s closing of Rs 34.9.  It is trading at 12 percent discount from its 52 week high of Rs 46.

Q2 Result Highlights

PTC India Financial Services Ltd posted a 86 percent growth YoY basis in its Net profit when you compare Q2 FY25 profit of Rs 47  crore to Q2 FY26 profit of Rs 88 crore and the QoQ decline would be 35.76 percent as compared to Rs. 136.63 Crores .Q1 FY26

The sales have declined around 19 percent from Rs 163 crore in Q2 FY25 to Rs 132 crore in Q2 FY26 on an YoY basis, and on QoQ basis there has been a decline of 7.04 percent as compared to Rs. 142 Crores in Q1 FY26.

The rise in Net profits was driven by the resolution of issues in the legacy book. While continuing to manage legacy exposures in conventional segments, PFS is strategically pivoting toward future-ready, impact-oriented opportunities

Q2 FY26 disbursement is at Rs 326 crores compared to NIL in Q2FY25 similarly the Q2 FY26 loan sanctions is at Rs 1,048 crores compared to NIL in Q2FY25. Return on Networth improved to 12.30 percent in Q2 FY26 compared to 7.26 percent in Q2 FY25.

The  Yield on Earning Portfolio is at 11.23 percent in  Q2FY26 which has increased compared to 11.47 percent in Q2FY25 . Gross Stage III improved to ₹193 crores in Q2FY26 compared to ₹764 crores in Q2FY25  and the Provision Coverage Ratio for Stage III assets improved to 76 percent in Q2FY26 from 63 percent in Q2FY25.

About the company and outlook

PTC India Financial Services is a finance company focused on providing loans for green and sustainable businesses, moving away from traditional thermal and hydro power projects. The company operates as a preferred financial partner for various infrastructure ventures, aiming to provide a lifeline to clean and sustainable development across India.

The sector-wise outstanding loans stood at Rs 3,697 crore out of which 47 percent came from distribution , 21 percent from renewable, 5 percent from road,13 percent from transmission ,4 percent from sustainable infra , ,9 percent from thermal,1 percent from others. The company’s AUM break-up for Q1 FY26 stands at 59.81 percent from state utilities and the remaining 40.19 percent from non-state utilities.

Written by Leon Mendonca

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