PTC India Financial Services Limited — Q3 FY26 earnings call

Call held 21 Jan 2026

Management summary

PTC India Financial Services reported a strong Q3 FY26, marked by a 13-quarter high in disbursements of INR 609 crores and robust sanctions. The company achieved positive PAT of INR 49 crores for the quarter and significantly reduced Net NPA to INR 47 crores. While NIM faced compression, management expects stabilization and aims for 10-15% AUM growth in Q4, supported by ongoing efforts in liability raising and diversification into new infrastructure segments.

Highlights

  • Q3 FY26 disbursements at INR 609 crores, a 13-quarter high, demonstrating renewed momentum.

  • 9 months FY26 disbursements of INR 1,073 crores surpassed total FY25 disbursements of INR 916 crores.

  • Loan sanctions for Q3 FY26 reached INR 1,188 crores, maintaining over INR 1,000 crores for two consecutive quarters.

  • Net NPA significantly reduced to INR 47 crores, with no fresh slippages since FY2018.

  • Reported a positive PAT of INR 49 crores for Q3 FY26 and INR 274 crores for 9 months FY26.

  • Maintained a robust Capital Adequacy Ratio of 71% and improved net worth from INR 2,978 crores to INR 3,034 crores.

Concerns

  • Net Interest Margin (NIM) is in a downtrend, stabilizing in the 3.5% to 3.8% range due to heightened competition.

  • Asset Under Management (AUM) moderated due to prepayments, though expected to grow 10-15% in Q4 FY26.

  • Resolution of the last remaining NPA (Danu Wind Parks) is still ongoing, with clear visibility expected by Q1 FY27.

  • Capital raise plans are now expected in the early part of the next financial year, not FY26.

Key financials

  1. Disbursements Q3 FY26 ₹609 Cr
  2. Disbursements 9M FY26 ₹1,073 Cr
  3. Disbursements H1 FY26 ₹464 Cr
  4. Disbursements FY25 ₹916 Cr
  5. Loan Sanctions Q3 FY26 ₹1,188 Cr
  6. Net NPA ₹47 Cr
  7. PAT Q3 FY26 ₹49 Cr
  8. PAT 9M FY26 ₹274 Cr
  9. Return on Assets Q3 FY26 3.7%
  10. Return on Assets 9M FY26 6.7%
  11. Capital Adequacy Ratio 71%
  12. Net Worth ₹3,034 Cr
  13. Net Worth Previous Quarter ₹2,978 Cr
  14. NIM Current Range 3.8%

What they filed

Q1 FY27: revenue down 27.5%, net profit down 70.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue163 158 153 142 132 −19%122 −23%119 −22%103 −27%
EBITDA148 160 144 213 177 +20%— — —
Net profit47 67 58 137 88 +87%49 −27%46 −21%40 −71%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Liquidity Cash ₹1,400 Cr Similar to INR 1,500 crores in September, providing a huge capital buffer.
    It is similar to the same amount, INR1,400 crores of liquidity.

Guidance & targets

Disbursements

  • Q4 FY26 Disbursements Disbursements · Q4 FY26 · High confidence ~INR 1,200 crores
    So, we are expecting Q4 to be almost double than Q3. That is our endeavour.

    — Sanjeev Kumar

  • FY26 Total Disbursements Disbursements · FY26 · High confidence INR 2,500 crores
    With the Board and Board committees now fully constituted, we remain well positioned to achieve the INR2,500 crores disbursement targets for FY '26, as we have communicated earlier too.

    — Sanjeev Kumar

  • Average Quarterly Disbursements Disbursements · going forward · High confidence INR 1,000 crores
    Going forward the next year or so, we could look at an average of INR1,000 crores per quarter as far as the disbursement is concerned, and you can work out the numbers.

    — R. Balaji

AUM Growth

  • Q4 FY26 AUM Growth AUM Growth · Q4 FY26 · High confidence 10%-15%
    So compared to the end of third quarter, by the end of the fourth quarter, we should be able to see around 10%-15% growth in AUM.

    — R. Balaji

  • Steady-state AUM Growth AUM Growth · steady-state · High confidence 15%
    On a steady-state basis, if we get INR1,000 crore disbursement plus regular repayments, even some prepayments, we expect a 15% growth in the AUM.

    — R. Balaji

NIM

  • Sustainable NIM Range NIM · going forward · High confidence 3.5% to 4%
    So, for a 10.5% portfolio that would translate possibly NIM of 3.5% to 4%. So that's what it would be-- the bottom would be 3.5%, but we would vary between 3.5% to 4% of our NIMs.

    — R. Balaji

Interest Spread

  • Target Interest Spread Interest Spread · going forward · High confidence 150 basis points
    I think 150 is what we are targeting. We want to target the interest spread as 150 basis points.

    — R. Balaji

Cost of Funds

  • Cost of Funds Reduction Cost of Funds · next 2-3 quarters · High confidence 15 to 20 basis points
    And we expect on the next 2, 3 quarters on a quarter-on-quarter basis, our average cost of funds would be coming down by 15 to 20 basis points for the next couple of quarters.

    — R. Balaji

NPA Resolution

  • Danu Wind Parks Resolution NPA Resolution · Q1 FY27 · Medium confidence Resolved
    And we expect that by the first month of FY '27, we'll have a clear visibility of the fund from where it is going to come and how it is going to resolve. And I'm very sure that in Q1 itself, it will be resolved.

    — Sanjeev Kumar

Capital Raise

  • Capital Raise Timeline Capital Raise · early part of next year (FY27) · High confidence Early part of next year
    Already, we are in January. So even when we go through the process, it will get to the early part of next year. It will not happen this year.

    — R. Balaji

Book Composition

  • Public vs. Private Sector Mix Book Composition · medium term (FY27) · High confidence 1/3 public, 2/3 private
    So, we need to balance our margin expectations, vis-a-vis the quantum that we can address. ... Yes, there'll be two third would be on the private and one third on the public. That's what we focus upon.

    — R. Balaji

What to watch in Q4 FY26

Danu Wind Parks NPA Resolution

Q1 FY27
Current Ongoing, multiple paths pursued
Target Clear visibility and resolution

Why it matters

Resolution of the last significant NPA is crucial for asset quality and balance sheet clean-up.

And we expect that by the first month of FY '27, we'll have a clear visibility of the fund from where it is going to come and how it is going to resolve. And I'm very sure that in Q1 itself, it will be resolved.

Risks & concerns

  • NIM Compression due to Competition

    medium

    The entire industry is witnessing heightened competition, leading to a downtrend in NIM, which the company aims to stabilize at 3.5-4%.

    Management acknowledged

  • Delay in Resolution of Last NPA (Danu Wind Parks)

    medium

    Resolution of the Danu Wind Parks NPA is ongoing through multiple channels (ARCs, NCLT, settlement offer) and is expected by Q1 FY27.

    Management acknowledged

  • Delays in Liability Raising

    medium

    Past incidents caused delays in resource mobilization, but with a reconstituted Board, the company is actively engaging with banks and plans to diversify into the bond market.

    Management acknowledged

  • AUM Moderation from Prepayments

    low

    Prepayments have caused AUM to moderate, but management expects this trend to bottom out, leading to AUM growth in Q4.

    Management acknowledged

Q&A highlights

7 direct
Danu Wind Parks NPA Resolution Update Partial
And we expect that by the first month of FY '27, we'll have a clear visibility of the fund from where it is going to come and how it is going to resolve. And I'm very sure that in Q1 itself, it will be resolved.

Analyst sought clarity on the resolution of the last remaining NPA, which management confirmed is actively being pursued with a Q1 FY27 resolution target, but without disclosing specific offer details.

Asked by Simran Sankla

Disbursements vs. Revenue/AUM Growth Discrepancy Direct
See, these disbursements are already been shown in the revenue data also. Disbursement has taken place in the last month of the last quarter, Q9 in December. So, interest would start from the month of January. So, you'll see the result of that disbursement, which will have been done in the last quarter, in Q4. And at the same time, the AUM has not gone up much because of the prepayment of certain loans.

Analyst questioned why high disbursements weren't immediately reflected in revenue/AUM, and management clarified the timing of interest accrual and the impact of prepayments on AUM.

Asked by Jay Suratwala

NIM Trend and Sustainable Range Direct
I think that's a very, very interesting question because the entire industry is witnessing heightened competition. And what we can just say is, for example, our endeavour would be to stabilize our portfolio yield at around 10.5% or so. So that would be the intent going forward. We'll be managing our portfolio accordingly. So, for a 10.5% portfolio that would translate possibly NIM of 3.5% to 4%.

Analyst probed the downtrend in NIM, and management provided a clear target range of 3.5% to 4% for sustainable NIM, acknowledging competitive pressures.

Asked by Nishita

Q4 Disbursement Doubling Clarification Direct
Yes. This is Sanjeev again. We expect it on a Q-on-Q basis, double from this quarter. Year-on-year basis, we have already achieved a significant growth. Last year was not such a great year as far as the disbursement is concerned. So, we are expecting Q4 to be almost double than Q3. That is our endeavour.

Analyst sought clarification on the 'double down' statement for Q4 disbursements, confirming it refers to a Q-on-Q doubling from Q3's INR 609 crores.

Asked by Nishita

Confidence in Q4 Disbursements and AUM Growth Direct
If you look into it, in the second quarter itself, we had sanctioned more than INR1,000 crores. And again, in the third quarter also, we have sanctioned more than INR1,000 crores. So, some of the things what we sanctioned in second quarter translated into some disbursements in the third quarter. And what we have sanctioned in second and third quarter, some of the sanctions would translate into disbursements in the fourth quarter.

Analyst questioned the feasibility of high Q4 disbursements and AUM growth, and management explained the lag between sanctions and disbursements, reiterating confidence based on strong prior sanctions.

Asked by Vishal Mehta

Strategy for Private vs. Public Sector Lending Direct
We are not keeping it to 0, okay? And lending to state utilities, is an integral part. And if you look into it, we had said that in the medium term, that is in FY '27, we wanted it to come to 1/3 of our book. Now the reason why we are going after private sector in a significantly more focused manner compared to the utilities is primarily because the state utility expectations is a larger quantum of loans and two, they are much more rate competitive.

Analyst questioned the shift to private sector lending, and management clarified it's a strategic balance (1/3 public, 2/3 private by FY27) driven by quantum, rate competitiveness, and margin expectations.

Asked by Vishal Mehta

Liability Raising Strategy and Timeline Direct
See liabilities, like the unfortunate incident, what happened in September of '26, right, pushed our resource raising mobilization by 2 or 3 months. Like in this quarter, the Board was completely reconstituted and new directors have come on board. Now with increased disbursements and a fully functional Board, we'll be engaging with we're engaging already with quite a few banks. In the fourth quarter, we expect to see a couple of sanctions coming through.

Analyst sought details on liability raising, and management explained past delays due to governance issues, outlining current engagement with banks and expected sanctions in Q4, with diversification into bond markets next year.

Asked by Vishal Mehta

Dividend Declaration Policy Direct
So, thanks, Rakeshji. So going forward, we would be doing it because see one of the things is while we are coming out of a sticky and a tough issue, the emphasis was on conserving resources because the market also was volatile. Now that we are back onto the growth, shortly, you should be seeing what we are doing as far as dividends are concerned. So, thanks for being patient with this. Hopefully, there'll be good news at the end of the annual results.

An individual investor questioned the lack of dividends for two years despite profits, and management indicated that with renewed growth, dividend declarations are expected at the annual results.

Asked by Rakesh Srivastav

3 min read 7 chapters

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.

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