Detailed Narrative
Strong Business Momentum and Disbursements
Q3 FY26 marked an inflection point for PTC India Financial Services, demonstrating renewed business momentum. Disbursements reached INR 609 crores, achieving a 13-quarter high. Cumulatively, 9-month FY26 disbursements totaled INR 1,073 crores, already surpassing the entire FY25 disbursements of INR 916 crores. Loan sanctions for Q3 FY26 stood at INR 1,188 crores, maintaining a trend of over INR 1,000 crores in sanctions for two consecutive quarters, with 100% of disbursements directed to the private sector.
Asset Quality Improvement and NPA Resolution
The company has maintained a strong focus on asset quality, reporting no fresh slippages since financial year 2018. Net NPA has been significantly reduced to INR 47 crores. The resolution of the last remaining NPA account, Danu Wind Parks, is actively being pursued through multiple channels including contacting ARCs and NCLT. Management expects clear visibility and resolution of this account by the first month of FY27.
Financial Performance and Capital Adequacy
PTC India Financial Services reported a positive Profit After Tax (PAT) of INR 49 crores for Q3 FY26 and INR 274 crores for the nine months ended December 31, 2025. The Return on Assets (RoA) for Q3 was 3.73% and for 9 months was 6.73%. The company maintains a robust Capital Adequacy Ratio of 71% against a regulatory requirement of 15%, and its net worth improved from INR 2,978 crores in the previous quarter to INR 3,034 crores.
Net Interest Margin (NIM) and Cost of Funds Outlook
The company's endeavor is to stabilize its portfolio yield at around 10.5%, which is expected to translate into a sustainable Net Interest Margin (NIM) of 3.5% to 4%. The current NIM is in the 3.5% to 3.8% range. Management anticipates a reduction in the average cost of funds by 15 to 20 basis points over the next 2-3 quarters, driven by better transmission of interest rate changes.
Asset Under Management (AUM) Growth and Diversification
While AUM moderated due to prepayments, management believes the prepayment cycle is nearing its bottom. They project a 10-15% growth in AUM for Q4 FY26 compared to Q3, and a steady-state 15% AUM growth with average quarterly disbursements of INR 1,000 crores. The company is diversifying its engagement into new infrastructure segments such as oil and gas, data centers, and CBG, alongside a continued focus on granular approach and expansion in sunrise sectors.
Liability Raising and Funding Strategy
Resource mobilization efforts were previously delayed but are now gaining traction with a reconstituted Board. The company is actively engaging with several banks and expects a couple of sanctions for liability raising to fructify in Q4 FY26. To ensure sustained growth, the company plans to diversify its funding sources beyond banks, making inroads into the bond market in the early part of the next financial year to build a more diversified liability profile.
Strategic Focus on Private Sector and Infrastructure Segments
PTC India Financial Services is strategically focusing on the private sector, aiming for a 2/3 private and 1/3 public sector book in the medium term (FY27). This approach is driven by the larger quantum of loans and rate competitiveness in the private space. The company is also strengthening its SME division and co-creating structured financing solutions by leveraging its existing borrower relationships, while continuing to target high-margin projects across all infrastructure sectors.