Power Finance Corporation Ltd (PFC) is a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India. Established in 1986, it is a systemically important non-deposit-taking NBFC registered with the RBI as an Infrastructure Finance Company. PFC primarily finances power generation, transmission, and distribution projects across India, playing a pivotal role in the country’s energy transition and rural electrification. With consistent profitability, a strong balance sheet, and high dividend payouts, PFC remains a cornerstone holding for conservative investors seeking PSU exposure with income. This article provides a data-backed outlook on the PFC share price target 2026–2030.
Power Finance Corporation Ltd: Company Overview
- Founded: 1986
- Headquarters: New Delhi
- Key Segments: Project Term Loans, Lease Financing, Debt Refinancing, Credit Guarantees for the Power Sector
- Strategic Role: Finances over 50% of India’s power infrastructure; key enabler of Green Energy Corridors and DISCOM reforms
- Ownership: 55.99% held by the Government of India → Yes, it is a government company
PFC benefits from sovereign backing, long-term lending visibility, and policy tailwinds from India’s $100B+ power sector capex push over the next decade.
Power Finance Corporation Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹386.30 |
| Market Capitalization | ₹1,27,482.93 Cr |
| No. of Shares Outstanding | 330.01 Cr |
| 52-Week High / Low | ₹448 / ₹330 |
| P/E Ratio (TTM) | 6.99 |
| P/B Ratio | 1.31 |
| EPS (TTM) | ₹55.23 |
| Book Value (TTM) | ₹295.52 |
| ROE | 20.40% |
| ROCE | 9.74% |
| Dividend Yield | 4.13% |
| Face Value | ₹10 |
| Operating Revenue | ₹53,099.22 Cr |
| Net Profit | ₹17,352.19 Cr |
| Sales Growth (YoY) | 15.38% |
| Profit Growth (YoY) | 20.78% |
| Promoter Holding | 55.99% |
Power Finance Corporation Ltd Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹410 – ₹450 |
| 2027 | ₹435 – ₹485 |
| 2028 | ₹460 – ₹520 |
| 2029 | ₹485 – ₹560 |
| 2030 | ₹510 – ₹600 |
Power Finance Corporation Ltd Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹410 | ₹450 |
PFC reported 20.78% YoY profit growth and 15.38% sales growth in FY2025, driven by higher disbursements to renewable and transmission projects. Trading at a P/E of just 6.99x and P/B of 1.31x, the stock appears undervalued relative to its 20.4% ROE and 4.13% dividend yield. A 2026 target of ₹410–₹450 assumes continued policy support and stable asset quality.
Power Finance Corporation Ltd Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹435 | ₹485 |
India’s power sector capex is projected to exceed ₹15 lakh Cr by 2030, with PFC as a key financier. If earnings grow at 15–18% CAGR and the dividend payout remains near 30%, investor interest could rise. Assuming EPS reaches ₹62–₹66 by FY27 and P/E expands to 7.5–8x, the 2027 range of ₹435–₹485 is realistic.
Power Finance Corporation Ltd Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹460 | ₹520 |
By 2028, benefits from green energy financing, DISCOM turnaround schemes, and higher fee income should reflect in profitability. While ROCE (9.74%) remains modest due to the NBFC model, capital efficiency is improving. A P/E of 7.5–8x on projected EPS (~₹64–₹68) supports the ₹460–₹520 band.
Power Finance Corporation Ltd Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹485 | ₹560 |
Long-term tailwinds include India’s net-zero 2070 roadmap, solar-wind hybrid push, and grid modernization. Risks include interest rate volatility and state DISCOM repayment delays. Using a P/E of 8–8.5x on FY29 EPS (~₹65–₹70), the 2029 target is ₹485–₹560.
Power Finance Corporation Ltd Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹510 | ₹600 |
Over a five-year horizon, PFC’s value lies in its irreplaceable national role—not explosive growth. A terminal P/E of 8.5–9x on FY30 EPS (~₹66–₹72) justifies the ₹510–₹600 range.
Power Finance Corporation Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (GOI) | 55.99% |
| Foreign Institutional Investors (FII) | 18.33% |
| Domestic Institutional Investors (DII) | 15.44% |
| Public & Retail | 10.24% |
| Others | 0.00% |
High promoter holding ensures policy alignment, while rising FII interest reflects global confidence in India’s power story.
Power Finance Corporation Ltd: Strengths vs Risks
Strengths:
- Consistent profitability: 20.78% YoY profit growth, 20.4% ROE
- Strong dividend yield (4.13%) with ~30% payout ratio
- Sovereign backing and strategic role in national infrastructure
- Trading below book value (P/B: 1.31x)—rare for profitable PSU
Risks:
- Modest ROCE (9.74%) limits capital efficiency appeal
- Exposure to the state DISCOM credit risk
- Interest rate sensitivity impacts NIM stability
- P/B of 1.31x leaves little room for multiple expansion
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Low to Moderate |
| Ideal Time Horizon | 3–5+ years |
| Volatility | Lower than market average (PSU financial stock) |
| Dividend/Income Potential | Yes (4.13% yield + consistent payouts) |
| Best For | Conservative investors seeking PSU exposure with income and safety |
Final Verdict
Power Finance Corporation Ltd combines strategic national importance, exceptional return ratios, and shareholder-friendly dividends. While not a high-growth story, it offers defensive value with steady compounding potential. Our PFC share price target 2026–2030 (₹410 to ₹600) reflects cautious optimism—rooted in infrastructure moat, policy tailwinds, and income, not speculation.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – PFC Consolidated Page (FY2025 + TTM)
- Finology Ticker – PFC Financial Ratios & Valuation
- PFC Investor Presentation (Q3 FY26, Jan 2026)
- BSE India – Annual Report FY2025
- Ministry of Power – National Electricity Plan 2023
