PFS - PTC India Fin

📊 NSE: PFS 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 11:21

💰 Financial Performance

Revenue Growth by Segment

The loan book composition as of June 30, 2025, shows a shift toward diverse infrastructure: Distribution (43%), Renewables (20%), Transmission (13%), Roads (8%), and Thermal/Hydro (5%). The total loan book contracted to INR 4,313 Cr, a 9% decline from INR 4,735 Cr in March 2025, primarily due to previous governance-related sanctioning halts.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates across India focusing on state power distribution companies and private corporate space.

Profitability Margins

Operating profit margin significantly improved to 43.24% in FY 2024-25 from 26.35% in FY 2023-24 (a 64.10% increase) due to a reduction in impairment costs on the loan portfolio and lower operational expenses.

EBITDA Margin

Net profit for FY 2024-25 was INR 217.05 Cr, up 35.03% YoY from INR 160.74 Cr. Return on Net Worth (RoNW) improved by 27.13% to 8.20% in FY 2024-25, driven by decreased impairment costs and NPA reductions.

Capital Expenditure

As an NBFC, capital expenditure is focused on liquidity; the company maintained cash and equivalents of INR 1,777 Cr as of September 30, 2025, to cover debt obligations for six months.

Credit Rating & Borrowing

PFS secured an in-principle approval for INR 500 Cr from IIFCL. The Cost of Funds stood at 9.49% in Q2 FY26, while the Yield on Assets was 11.23%, resulting in a spread of 1.74%.

⚙️ Operational Drivers

Raw Materials

Capital/Debt (100% of lending resource cost). The primary cost is the interest paid on borrowings.

Import Sources

Domestic financial markets and institutional lenders like IIFCL and various Indian banks.

Key Suppliers

India Infrastructure Finance Company Limited (IIFCL) and other undisclosed banking partners providing credit lines.

Capacity Expansion

Current loan book capacity is INR 4,313 Cr as of June 30, 2025. The company had a peak capacity of INR 11,094 Cr in March 2021, indicating significant headroom for book expansion as governance stabilizes.

Raw Material Costs

Cost of funds was 9.49% in Q2 FY26. Borrowing costs are a critical driver as the company seeks optimal pricing to revive business operations and improve the 1.74% spread.

Manufacturing Efficiency

Return on Assets (RoA) improved to 3.56% in Q2 FY26 from 2.92% in Q2 FY25, reflecting better utilization of the asset base despite a shrinking total book.

Logistics & Distribution

Not applicable for financial services.

📈 Strategic Growth

Expected Growth Rate

92%

Growth Strategy

The company initially targeted INR 4,000 Cr in disbursements for FY26 (representing ~92% growth over the June 2025 book). Strategy involves a foray into the SME segment, 100% private corporate space disbursements, and granularizing the loan book with smaller ticket sizes to de-risk the portfolio.

Products & Services

Infrastructure loans, mezzanine funding, and financial services for the energy value chain, including renewable energy, transmission, and EV mobility projects.

Brand Portfolio

PFS (PTC India Financial Services Limited), PTC (Parent Brand).

New Products/Services

Expansion into 'Sustainable Infra' including water treatment projects and electric vehicle (EV) mobility, aimed at diversifying away from thermal power.

Market Expansion

Focusing on renewable energy and transmission portfolios, which currently account for 20% and 13% of the loan book respectively.

Market Share & Ranking

Moderate market share in infrastructure financing; the loan book has declined from a peak of INR 11,094 Cr (2021) to INR 4,313 Cr (2025).

Strategic Alliances

Strategic support from promoter PTC India Ltd, which provides branding, strategic guidance, and a moral obligation for debt support in distress situations.

🌍 External Factors

Industry Trends

Shift from thermal power (pruned to 5% of book) toward renewable energy and sustainable infrastructure. The industry is evolving toward granular, private-sector-led green energy projects.

Competitive Landscape

Competes with other infrastructure-focused NBFCs and banks; currently faces challenges due to a 'modest market position' following a period of board instability.

Competitive Moat

Moat is derived from the parentage of PTC India Ltd, providing domain knowledge in the power sector and a shared brand that facilitates customer relationships and credit access.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and the financial health of State Power Distribution Companies (Discoms), which represent 43% of the loan book.

Consumer Behavior

Increased demand for sustainable financing and EV infrastructure is shifting the company's lending focus.

Geopolitical Risks

Exposure to global standard Liquidity Coverage Ratio (LCR) requirements to manage 30-day stress scenarios.

⚖️ Regulatory & Governance

Industry Regulations

Registered as an infrastructure-financing NBFC with the RBI; must adhere to Asset Liability Management (ALM) and Risk Management System guidelines.

Environmental Compliance

Focus on ESG through sustainable financing in renewables and EV mobility; specific compliance costs not disclosed.

Taxation Policy Impact

Not specifically detailed, but PAT of INR 217.05 Cr was reported after a PBT of INR 278.52 Cr, implying an effective tax rate of approximately 22%.

Legal Contingencies

Resolution of the Vento Power Infra Private Limited stressed asset (INR 193 Cr) is expected to improve asset quality metrics in the current fiscal year.

⚠️ Risk Analysis

Key Uncertainties

Governance risk following the sudden resignation of three Independent Directors in September 2025, which may impact the company's ability to raise capital and meet growth estimates.

Geographic Concentration Risk

Concentrated in India, specifically within the power sector value chain.

Third Party Dependencies

High dependency on PTC India Ltd for credit rating support and strategic direction.

Technology Obsolescence Risk

Exposure to cybersecurity and technology risks as identified in the risk management framework; currently strengthening the Operational Risk Management Framework.