PFC Q2 FY27: consolidated PAT dips 2% YoY on NCI drag; owners' PAT, EPS up 5%

Power Finance Corporation's consolidated (primary) net profit for Q2 FY27 was ₹7,681.51 Cr, down 1.95% YoY from ₹7,834.39 Cr and down 14.63% QoQ from Q1 FY27's ₹8,997.92 Cr, on total income of ₹29,234.42 Cr (revenue from operations ₹29,044.48 Cr, up just 0.53% YoY, +1.81% QoQ). No exceptional items were booked in either the current or year-ago quarter, so this is a clean like-for-like comparison. The headline group number, however, masks a split: profit attributable to PFC's own shareholders actually rose 5.07% YoY to ₹6,034.28 Cr, taking EPS to ₹18.29 from ₹17.40, while the non-controlling interest (largely public shareholders of subsidiary REC) share of group profit fell 21.23% YoY to ₹1,647.23 Cr — it is this NCI swing, not weaker consolidated operations, that pulls the group PAT figure down. Standalone (parent-only) results were firmer, with PAT up 11.76% YoY and 5.09% QoQ to ₹4,986.71 Cr on EPS of ₹15.11. Consolidated net profit margin compressed to 26.28% of total income (company-disclosed, Annexure-A) from 27.11% a year ago and 31.50% last quarter, with operating margin at 33.02% for the quarter. The sequential compression traces mainly to loan-impairment provisioning: Q1 FY27 carried an outsized ₹1,522.59 Cr net write-back on financial instruments that flattered that quarter's profit, versus a routine ₹172.38 Cr net charge this quarter — a provisioning base effect rather than fresh asset-quality deterioration. Consolidated finance costs also rose faster than revenue (₹18,057.75 Cr vs ₹17,250.42 Cr in Q1), consistent with the 'competitive environment' pressuring spreads that management flagged at the last concall. We found no third-party consensus estimate specific to this Q2 FY27 print to benchmark against, so vsStreet is unknown. Against management's own FY27 targets set out in the May 2026 concall — roughly 10% loan growth and a 2.40-2.50% net interest spread (the spread itself isn't separately disclosed in this filing to verify) — progress is trailing: standalone loans fell to ₹5,67,035.06 Cr from ₹5,74,018.10 Cr at end-March 2026 (-1.22% in H1), while consolidated loans (including REC) grew only 2.30% in H1 to ₹11,79,804.95 Cr, a pace below the stated full-year run-rate. Management had guided that prepayment pressures would moderate in FY27; the shrinking standalone book suggests that pressure persists at the parent even as the group continues diversifying into transmission infrastructure — PFC/its subsidiaries incorporated several new transmission SPVs through October 2026 (Khushkhera Transmission, two further SPVs, and Kadapa II REZ Transmission). The REC-into-PFC merger stayed on its stated track, with RBI's no-objection received 15 October 2026 and NSE/BSE no-objections on 19 October 2026, ahead of the shareholder, creditor and MCA approvals still needed for the targeted 1 April 2027 effective date. The Board also declared a second interim dividend of ₹4.10 per share (41% of face value), following the ₹3.90 first interim dividend already paid for FY27. No separate management press release accompanied this filing, so there is no additional company framing to reconcile beyond the results themselves.