Power Finance Corporation (PFC) has announced a dividend for the fiscal year 2026, providing investors with a significant return. The company has declared a dividend of Rs. 5 per share, reflecting its strong financial performance. The record date for the dividend has been set as May 25, 2026, meaning that shareholders on the company's books as of that date will be eligible for the payout. The payment date is scheduled for June 15, 2026, ensuring timely distribution.
Dividend History and Financial Performance
PFC has a consistent track record of paying dividends. In the previous fiscal year, the company paid a dividend of Rs. 4 per share. The increase to Rs. 5 per share underscores the company's robust earnings growth. For the quarter ended March 2026, PFC reported a net profit of Rs. 3,500 crore, up 15% year-on-year. The revenue for the quarter stood at Rs. 12,000 crore, driven by higher lending activity in the power sector.
Share Price Movement
Following the dividend announcement, PFC shares witnessed a positive movement on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). On the NSE, the stock opened at Rs. 450 and touched an intraday high of Rs. 465. On the BSE, the share price ranged between Rs. 448 and Rs. 462. The stock has gained approximately 8% in the last month, reflecting investor confidence.
Quarterly Results Highlights
PFC's quarterly results for the period ending March 2026 showed strong operational performance. The company's net interest income (NII) grew by 12% to Rs. 2,800 crore. The asset quality improved, with gross non-performing assets (NPAs) declining to 2.5% from 3.1% in the same quarter last year. The provision coverage ratio stood at 75%, indicating a healthy buffer.
Outlook and Future Prospects
Analysts remain optimistic about PFC's growth trajectory, citing the government's focus on renewable energy and infrastructure development. The company is expected to benefit from increased borrowing by state power utilities and private players. With a strong capital adequacy ratio and a diversified loan book, PFC is well-positioned to maintain its dividend payout in the coming years.
Investors are advised to consider the record date and ensure their holdings are updated to receive the dividend. The payment will be credited directly to bank accounts or sent via warrant, depending on the investor's preference.
