India's Power Finance falls after Q1 interest income drops, tepid loan growth

Power Finance

10/08/2026 06:24

** Shares of India's Power Finance Corp PWFC.NS down 4.05% at 403 rupees--biggest pct fall since June 11, 2026
** The government-owned non-banking financial company's stock hits lowest level in three weeks
** On Friday after market hours, the company reported a 1.1% drop in first-quarter consolidated interest income to 279.47 billion rupees ($2.93 billion)
** NII stayed weak as margins narrowed 14 bps y/y; loan growth was subdued at 4% y/y--Macquarie ("outperform", TP at 450 rupees)
** Morgan Stanley ("overweight", TP at 510 rupees) sees downside risks to estimates from tepid Q1 loan growth, disbursements decline; awaiting outlook for FY25 loan growth, margins, and bad loan resolution
** Brokerage sees potentially weak stock performance in the near term but valuation is inexpensive
** YTD, stock up 13.31%
     
($1 = 95.2300 Indian rupees)

(Reporting by Saikeerthi in Bengaluru)
((Saikeerthi@thomsonreuters.com; (+91) 8296756080))