Annual Report for FY 2025-26

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Thankyionug, Youfarist hfully, FoPro wFeirn aCnocrep orLattdi.o n (ManKiusmha r Aganval) CompaSneyc re&t Caormyp liOaffincceer m _ka ga nval@pfcindia.com �':c1_4. q\ifJili,pld4 ··jf.lfq'·1,,ii.l l-1li:.4Wfoll, �� .� �-110001� : 011-2345�6 00:0 0 11-23412545 RegOdff.i cUerJ:a nr,1d ,Bha rr akhLaamnCbeoa,n naPulgahNctee wD, e lhi-P1h1o0:n00 e0111 -234F5a:6x0 0l0l0- 23412545 �61fllW�ecb/s iwtwew:. pfcined CiIaN.L:c6 o5.9i11n09 D8L6 GOI024862 40th Annual Report 2025-26 THE POWER BEHIND PROGRESS THE POWER BEHIND PROGRESS Progress needs power, and power needs capital. For nearly four decades, PFC has provided it, financing the generation, transmission and distribution that carried India from chronic shortage to surplus. Set up in 1986 to fund the nation's power sector, we have grown into its largest power sector financier and its largest renewable financier, with capital reaching every stage of the value chain and the infrastructure around it. Today, India is building a new energy economy. Non-fossil sources have crossed half the country's installed capacity, five years ahead of target, and the decade ahead calls for financing on an unprecedented scale. This is the ground we are built for. We fund the transition end-to-end: generation, transmission, storage, distribution reform and green hydrogen, with discipline, scale and purpose. Behind every megawatt added and every grid strengthened is the capital that makes it possible. That is the power behind progress. Cover Narration This year's cover carries the theme forward: PFC as the power behind India's progress. It reads as a current of energy and capital moving through the nation, from the natural forces that generate power to the grids, cities and communities it reaches. A single source sends light outward, tracing how finance becomes electricity and electricity becomes growth. The visual holds PFC at the centre of India's energy transition, the steady force that funds generation, carries it across the country, and turns national ambition into infrastructure that lasts. Contents 02 300 Corporate Overview Financial Statements Board of Directors 02 Independent Auditors’ Report on the Standalone Financial Statement 300 Senior Management 03 Non-Banking Financial Companies About PFC 04 Auditors’ Report 313 What We Do 08 Comment of the C&AG on Standalone Offerings 10 Financial Statements 315 Milestones 12 Standalone Balance Sheet 316 Operating Context 14 Standalone Statement of Profit and Loss 317 ESG 18 Standalone Statement of Changes in Equity 318 A Year of Records & Performance at a Glance 20 Standalone Statement of Cash Flows 320 Statement of Value Added & Key Ratios 22 Independent Auditors’ Report on the Key Performance Indicators 24 Consolidated Financial Statements 428 PFC's Sustainability Journey 29 Comment of the C&AG on Consolidated Letter to Shareholders 30 Financial Statements 439 Consolidated Balance Sheets 440 36 Consolidated Statement of Profit and Loss 442 Consolidated Statement of Changes in Equity 444 Statutory Reports Consolidated Statement of Notice 36 Cash Flows 446 Directors' Profile 49 Corporate Information 585 Report of the Board of Directors 54 Management Discussion & Analysis 82 Integrated Reporting 96 Report on Corporate Governance 110 Certificate on Corporate Governance 136 Business Responsibility and Sustainability Reporting 137 ESG Report 181 Secretarial Audit Report 287 Annual Report on CSR Activities for the FY 2025-26 292 Power Finance Corporation Ltd. The Power Behind Progress Board of Directors Left to right (standing) Shashank Misra Rajesh Kumar Agarwal V. Packirisamy Dr. Sudhir Mehta Director (Govt. Nominee) Director (Finance) Director (Commercial) Independent Director Left to right (sitting) Parminder Chopra Pankaj Gupta Chairman & Managing Director Independent Director 02 40th Annual Report 2025-26 Corporate Overview Statutory Reports Financial Statements Senior Management* Rajesh Saurav Manoj R. K. Chaturvedi Rajesh Kumar Singh Kumar Shah Kumar Rana Executive Director Kumar Shahi CVO Executive Director Executive Director Executive Director Ali Shah Hemant Pawan Kumar P. Shanmuga Jasneet Guram Executive Director Kumar Das Executive Director Sundaram Executive Director Executive Director Executive Director Y. Venugopal B. S. Arunachalam D. V. Subba Rao Praveen Verm Priya Kumar Executive Director Executive Director Executive Director Executive Director Executive Director Deepak Jain Manish Executive Director Kumar Agarwal Company Secretary * As on 06.08.2026 40th Annual Report 2025-26 03 Power Finance Corporation Ltd. The Power Behind Progress About PFC The Nation's Power Financier Power Finance Corporation Limited Our lending covers rupee term loans, short-term finance, lease financing and transitional funding. (PFC) is a Schedule-A Maharatna CPSE Beyond the power sector, we now finance e-mobility under the Ministry of Power and the and charging infrastructure, roads, ports, metro rail largest government-owned NBFC in and smart cities, widening our book as the country's India. We were set up in 1986 to finance infrastructure needs grow. the country's power sector, and across We lend to central and state utilities, power equipment the four decades since, we have funded manufacturers, government departments and large infrastructure developers. generation, transmission and distribution capacity nationwide. PFC is the highest profit-making NBFC in India and the country's largest renewable energy financier, carrying We are the nodal agency for several of the government's a 'AAA' domestic credit rating and an international principal power programmes, among th [Showing first 8,000 characters — download PDF for full document]