PTC India Financial Services Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

PTC India Financial Services Limited delivered a strong financial and operational performance in FY26, marked by a 46.9% increase in PAT to INR319 crores and significant growth in loan sanctions and disbursements. Asset quality improved substantially, with Gross Stage III assets reducing by 73% to INR190 crores. Despite a slight dip in total income and softening yield, profitability metrics like RoA and RoE showed strong improvement, and CRISIL reaffirmed its rating. However, the resignation of the MD and the non-declaration of dividends were noted concerns.

Highlights

  • PAT rising to INR319 crores from INR217 crores in FY '25, a 46.9% YoY growth.

  • Loan sanctions increasing significantly to INR3,448 crores compared to INR825 crores in FY '25, representing over 300% growth.

  • Disbursements growing to INR1,235 crores from INR916 crores in FY '25, a 34.8% YoY growth.

  • Gross Stage III assets reduced by 73% to INR190 crores from INR711 crores, and Net Stage III assets declined by 83% to INR47 crores from INR284 crores.

  • Provision coverage ratio for Stage III assets improved to 75% in FY '26 from 60% in FY '25.

  • Return on assets (annualized) improved to 6% from 3.56%, and return on net worth (annualized) increased to 10.95% from 8.2%.

  • CRISIL removed the company's rating from 'Watch with Developing Implications' and reaffirmed it at CRISIL A (Negative)/A1.

Concerns

  • Total income dipped slightly to INR518 crores from INR638 crores in the previous year, an 18.8% YoY decline.

  • Yield on earning portfolio softened to 10.29% from 11.27% in Q4 FY '25.

  • MD Mr. R. Balaji resigned due to personal reasons, leading to leadership transition.

  • Dividend was not declared this quarter, causing investor concern.

Key financials

2 periods

Headline

  • PAT
    ₹319 Cr
    YoY +46.9%
  • Total Income
    ₹518 Cr
    YoY -18.8%
  • Loan Sanctions
    ₹3,448 Cr
    YoY +317.9%
  • Disbursements
    ₹1,235 Cr
    YoY +34.8%
  • Gross Stage III Assets
    ₹190 Cr
    YoY -73.3%
  • Net Stage III Assets
    ₹47 Cr
    YoY -83.4%
  • Provision Coverage Ratio (Stage III)
    75%
  • Return on Assets (annualized)
    6%
  • Return on Net Worth (annualized)
    10.9%
  • Net Interest Margin
    4.5%
  • AUM
    ₹3,292 Cr
  • Net NPA
    1.5%

Q4

  • Yield on Earning Portfolio
    10.3%

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 ₹1,800 Cr
    We have got INR1,800 crores liquidity in our balance sheet.

Guidance & targets

AUM

  • AUM Growth AUM · year-on-year · Medium confidence 30-50%
    So you'll see increased disbursements also in future. Quality, we have already worked on. There is no fresh slippage in our, say, last 8 years disbursement. It will not happen in future also. So we are focusing on that. And you'll see at least, say, 30% to 50% growth year-on-year.

    — Sanjeev Kumar

Cost of Funds

  • Cost of Borrowing Cost of Funds · future · Medium confidence lesser than 9.5% and further down
    We have been taking up with the lenders, right? And we expect that improvement should be there in the cost of borrowing. So our cost of borrowing is not 9.5%. It is lesser than that. And our treasury team has been aggressively chasing up with all the lenders for further reduction in the spread. So we are working on that.

    — Dilip Srivastava

Lending Rates

  • PFS Base Rate Lending Rates · future · Medium confidence going down
    And consistently, we'll see the PFS BR going down in future.

    — Sanjeev Kumar

What to watch in Q1 FY27

Dividend Declaration

Next quarter
Current Not declared for FY26
Target Decision on dividend for FY26

Why it matters

Important for shareholder returns and investor confidence, especially after analyst questions.

Dividend, actually that money at this time, we have not declared and we'll review it in the next quarter.

Risks & concerns

  • MD's Resignation

    medium

    Mr. R. Balaji resigned for personal reasons, and the company is in the process of finding a replacement.

    Analyst acknowledged

  • Lack of Dividend Declaration

    medium

    Despite profitability, no dividend was declared, leading to investor concern. Management will review it next quarter.

    Analyst acknowledged

  • Softening Yield on Earning Portfolio

    low

    Yield on earning portfolio softened to 10.29% in Q4 FY26 from 11.27% in Q4 FY25, attributed to evolving portfolio dynamics and a calibrated growth approach.

    Management acknowledged

Q&A highlights

4 direct, 1 evasive
Difference between Sanctions and Disbursements Direct
The reason is we are into an infrastructure finance segment. Infrastructure finance by its nature only is a large financing thing where the project finance is done for the large projects. Projects are executed in the time line of, say, 1 year to 3 years' time for different type of infrastructure projects.

Clarifies the nature of infrastructure financing, explaining the lag between sanctions and actual disbursements, which is crucial for understanding AUM growth.

Asked by Chintan Mehta

MD's Resignation and Future Leadership Partial
So first of all, it was a company vision, not an individual vision. And MD has resigned and that information/ reason for -- that was his personal reason, that has been duly informed to the stock exchange as well and is available in the public domain as well. ... All the Board level positions are full. CEO vacancy would be created as soon as Mr. Balaji would be released. And our team is already working on replacement of MD and CEO. So it will be also done in due course.

Addresses investor concerns about leadership stability and the reasons behind the MD's departure, confirming the process for replacement is underway.

Asked by Chintan Mehta

High Cost of Borrowing and Capital Adequacy Partial
We have been taking up with the lenders, right? And we expect that improvement should be there in the cost of borrowing. So our cost of borrowing is not 9.5%. It is lesser than that. And our treasury team has been aggressively chasing up with all the lenders for further reduction in the spread. So we are working on that.

Analysts are concerned about the cost of funds impacting NIM, and management indicates efforts to reduce it, linking it to fresh borrowings.

Asked by Chintan Mehta

FY27 Disbursement Target (INR4,000 crores) Evasive
That target is yet to be set. The budget is in the process of approval. Our target is not only quantitative, it is qualitative also. It should be high yielding and it should give a return on asset and return on money deployed also.

Analyst pushes for a specific disbursement target for the next fiscal year, but management emphasizes qualitative aspects over a hard number, indicating a cautious approach.

Asked by Chintan Mehta

Dividend Declaration Partial
Dividend, actually that money at this time, we have not declared and we'll review it in the next quarter. Ultimately, this is only for the increased capital appreciation and that net worth ultimately, it's a money related to the net worth has been improved to the stakeholders only.

A direct question from an individual investor highlights dissatisfaction with the lack of dividend despite profitability, a common concern for retail shareholders.

Asked by Rakesh Srivastava

Fundraising Process and Cash on Hand Direct
We have got INR1,800 crores liquidity in our balance sheet. If the money is there, why we will not disburse and why we'll borrow. It's that simple. When we borrow, there is a cost on that.

Addresses the perception that the company is unable to raise funds, clarifying that current liquidity is sufficient for disbursements, and borrowing incurs cost.

Asked by Chana Mallu

Status of Gross Stage III Portfolio (INR190 crores) Direct
The major portion of the GNPA is Danu Wind Parks. And I think as this was discussed, I think this has been under discussion a number of times in earlier calls also. The resolution process is underway. It's been referred to NCLT. And -- apparently the promoters had offered an OTS, which a and when it is if there's an acceptable offer, then it will be considered on merits.

Provides specific details on the largest component of the Gross Stage III assets and the ongoing resolution process, reassuring investors about asset quality management.

Asked by Chintan Mehta

Impact of NTPC becoming a promoter of PTC India Direct
Second part that PTC -- that NTPC and that all the 4 PSUs and only 1 PSU will be taken care of. So as of now, no impact has come on us. No formal intimation has been given to us on that part. And we don't feel that any adverse impact is there on the PFS for that part.

Addresses potential implications of a significant change in the parent company's shareholding structure, clarifying that PFS does not foresee any adverse impact.

Asked by Rakesh Srivastava

2 min read 6 chapters

Detailed narrative

Financial Performance Overview

PTC India Financial Services Limited reported a strong financial performance in FY26, with Profit After Tax (PAT) rising to INR319 crores from INR217 crores in FY25, marking a 46.9% year-on-year growth. Despite a slight dip in total income to INR518 crores from INR638 crores, the company achieved significant improvements in profitability metrics. The annualized Return on Assets (RoA) improved to 6% from 3.56%, and the annualized Return on Net Worth (RoNW) increased to 10.95% from 8.2%.

Asset Quality Enhancement

The company demonstrated substantial improvement in asset quality during FY26. Gross Stage III assets declined significantly by 73% to INR190 crores from INR711 crores in FY25. Similarly, Net Stage III assets saw an 83% reduction, falling to INR47 crores from INR284 crores. The provision coverage ratio for Stage III assets improved materially to 75% in FY26 from 60% in FY25, underscoring a strengthened balance sheet and prudent risk management approach.

Business Growth and Diversification

FY26 witnessed a sharp acceleration in business activity, with loan sanctions surging over 300% to INR3,448 crores compared to INR825 crores in FY25. Disbursements also grew by 34.8% to INR1,235 crores from INR916 crores in the previous year. The company's focus remains firmly on the infrastructure sector, primarily renewable energy, transmission, distribution, and new segments like data centers and compressed biogas, with 100% of disbursements directed to private corporate borrowers.

Funding and Liquidity Management

The company maintains a strong liquidity position, with INR1,800 crores available on its balance sheet. This enables it to fund current disbursements without immediate new borrowings, as borrowing incurs a cost. Management is actively engaging with lenders to reduce the cost of borrowing, which is currently below 9.5%, and expects further reductions as fresh borrowings are made, leading to a consistent decline in the PFS Base Rate.

Management and Governance Updates

The company addressed the resignation of its MD, Mr. R. Balaji, attributing it to personal reasons and confirming that the process for his replacement is underway, with the current MD remaining until June 30. All Board-level positions are currently filled. CRISIL also removed the company's rating from 'Watch with Developing Implications' and reaffirmed it at CRISIL A (Negative)/A1, indicating improved confidence in the company's governance and financial health.

Dividend Policy and Investor Relations

Despite reporting strong profits for FY26, the company did not declare a dividend, a decision that raised concerns among individual investors. Management stated that the dividend decision would be reviewed in the next quarter, emphasizing that the current focus is on increasing capital appreciation and improving net worth for stakeholders. This approach aims to deliver long-term value to all stakeholders.

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