Power Finance Corporation Share Price Target: Emkay Cuts To Rs 500 — Should You Still Buy?

State-owned Power Finance Corporation (PFC) reported an increase of 11% in its consolidated net profit at Rs 8,358 crore for the fourth quarter of the quarter ended March 31, FY25 on Wednesday.

Power Finance Corporation Q4 Results

The state-owned company showed a reasonably good performance in the fourth quarter of the financial year 2024-25. While the firm reported an 11% rise in net profit at Rs 8,358 crore for the reporting quarter, its profit stood at Rs 7,556 crore in the same period a year-ago.

Additionally, the company's Assets Under Management (AUM) stood at Rs 5.43 lakh crore. This indicates a year-on-year growth of 12.8% and a quarter-onquarter (QoQ) increase of 7.8%.

Power Finance Corporation Final Dividend FY25

Further, PFC has also declared a final dividend of Rs 2.05 per equity share for the financial year 2024-25 and the record date for the dividend is June 13, 2025.

What Does The Brokerage Say?

Emkay Global in a report on PFC's outlook on growth moderation in price said that the firm's operating and financial performance was impressive, with the key loan growth, NII, and PAT numbers above their estimates.

As per the report, key fourth quarter notables include, a high 12.8% YoY loan growth, over-100% recovery in the KSK Mahanadi resolution leading to reversal of Rs 18 billion expected credit loss (ECL) provision and Rs 11.92 billion interest income. Further, stage 1&2 ECL provision increased materially, by Rs 19.2 billion QoQ, and provided for 100% of Gensol's loan exposure.

Buy, Sell Or Hold?

The brokerage reiterated its BUY rating for the stock despite cutting FY26-27E EPS by 10% due to 2-3% AUM cut, 10bps NIM cut, as well as rise in credit cost, reflecting on Q4 developments, management commentary, and macroeconomic outlook.

Power Finance Corporation Target Price

Emkay Global also reduced the target price for the stock by 9% to Rs 500, for March-26E.

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