June 20, 2025 — Mumbai: Shares of Power Finance Corporation Ltd. (PFC) surged nearly 6% on Thursday, buoyed by positive market sentiment and renewed investor interest in the power and infrastructure financing sector. The stock hit an intraday high of ₹XXX before closing at ₹XXX on the National Stock Exchange (NSE), marking one of its strongest single-day gains in recent weeks.
Analysts attributed the rally to a combination of factors, including optimistic market momentum, a favorable policy environment for the power sector, and the company’s robust financial position. With India’s push towards clean energy and large-scale infrastructure development, power financing companies like PFC are seeing renewed investor confidence.
Sectoral Tailwinds
The broader Nifty Energy index also saw gains, rising over 1.8% during the session, as investors reacted positively to recent government announcements aimed at strengthening India’s energy infrastructure. The government’s renewed focus on electrification, renewable integration, and infrastructure funding has provided a favorable outlook for NBFCs (Non-Banking Financial Companies) like PFC that specialize in funding power projects.
“Power Finance Corporation is well-positioned to benefit from the capex cycle in the power sector. With a healthy loan book and low NPAs, the company remains a top pick among infrastructure financiers,” said Rakesh Mehta, Senior Analyst at FinBridge Capital.
Strong Fundamentals
PFC, a Maharatna PSU under the Ministry of Power, reported strong financial results for the recent quarter, including a healthy rise in net profit and a significant reduction in bad loans. The company’s asset quality continues to improve, backed by better recoveries and strong borrower compliance.
In its Q4 FY25 results, PFC posted a consolidated net profit of ₹X,XXX crore, marking a Y-o-Y growth of XX%. Its net interest margin (NIM) improved slightly, while gross NPA dropped to X.X%, reflecting better credit discipline and improved performance by borrowers.
Market Sentiment and Institutional Interest
The stock has also seen increased institutional buying over the past few weeks, with foreign and domestic investors looking to tap into India’s long-term infrastructure growth. Market experts noted that PFC’s strategic role in supporting India’s renewable energy mission has added to its appeal, especially among ESG-conscious investors.
“Institutional sentiment towards public-sector financials is improving, especially with the government’s push for cleaner, sustainable power solutions,” said Meena Iyer, Portfolio Manager at Greenline Asset Advisors.
Outlook
Analysts remain bullish on PFC’s long-term prospects, citing stable margins, a growing loan portfolio, and a strong government-backed business model. Some brokerages have revised their target price for the stock upward, anticipating continued momentum amid broader market optimism.
With a strong balance sheet, strategic importance, and favorable macroeconomic factors, Power Finance Corporation appears poised to maintain its upward trajectory in the coming quarters.
