PTC India Financial Services: Q3 FY26 Performance and Strategic Momentum

PTC India Financial Services Limited (PFS), an RBI-classified Infrastructure Finance Company, has reported its financial performance for the third quarter and nine months ended December 31, 2025 (Q3 FY26). The company, a subsidiary of PTC India Limited, is demonstrating renewed momentum and strategic clarity, focusing on sustainable infrastructure transformation. For Q3 FY26, PFS reported a total income of INR 125.04 crores and a Profit After Tax (PAT) of INR 49.09 crores. These figures, while showing a slight moderation in total income compared to the previous quarter, underscore a period of significant operational ramp-up and asset quality improvement.

The quarter was marked by robust operational achievements, with disbursements reaching INR 609 crores, a 13-quarter high for the organization and a substantial 103% year-on-year growth. This figure also surpassed the cumulative disbursements of H1 FY26, which stood at INR 464 crores. Furthermore, the company's loan sanctions remained strong, exceeding INR 1,000 crores for two consecutive quarters, totaling INR 1,188 crores in Q3 FY26. This reflects a 4.28 times increase year-on-year. The cumulative disbursements for the nine months of FY26 reached INR 1,073 crores, already surpassing the total disbursements of INR 916 crores for the entire FY25. This acceleration in execution momentum is a testament to the strengthened management team and reconstituted Board.

Financial Highlights: A Snapshot

Strategic Shifts and Portfolio Transformation

PFS is undergoing a significant strategic transformation, pivoting towards sustainable and impact-oriented financing. A key highlight is that 100% of Q3 FY26 disbursements were directed to private corporate borrowers, reinforcing the company's commitment to a diversified portfolio. The focus areas include electric vehicle mobility, water treatment projects, renewable energy, power transmission, waste management facilities, roadways, airports, logistics, warehousing, compressed biogas, bio ethanol, and energy storage systems. This granular portfolio approach is increasingly visible across disbursements and the pipeline, with a higher emphasis on sole and multiple lending structures to strategically lower reliance on consortium lending.

Asset quality has seen significant improvement, with Gross Stage III assets reducing by over 80% since March 2023 to INR 193 crores in Q3 FY26, down from INR 750 crores in Q3 FY25. Net Stage III assets also decreased by 83% to INR 47 crores from INR 280 crores in 9M FY25. The Provision Coverage Ratio for Stage III assets improved to 76% in Q3 FY26 from 63% in Q3 FY25. There were no new slippages in Q3 FY26, and all loan accounts disbursed since FY18 are classified as STANDARD. The company continues to make progress on resolving its only remaining NPA account, Danu Wind Parks, with a resolution expected by Q1 FY27.

Future Outlook and Management Commentary

Management expressed confidence in delivering steady, high-quality growth, supported by a strong pipeline and a fully constituted Board. They anticipate disbursements to continue scaling in a measured manner through Q4 FY26 and beyond, with a target of INR 1,000 crores per quarter in the foreseeable future. AUM is expected to grow by 10-15% by the end of Q4 FY26. The company is also focused on resource diversification to build financial resilience, including making inroads into the bond market in early FY27 to reduce reliance on banks and improve its liability profile. Efforts are underway to manage the cost of funds, with an expected reduction of 15-20 basis points over the next 2-3 quarters.

PFS's strategic blueprint for the future includes improving asset quality, de-risking the portfolio by reducing concentration, focusing on distributed infrastructure, strengthening governance and risk management, diversifying resources, delivering customer-centric financial solutions, focusing on ESG and sustainability goals, and digital transformation. The company's robust capital adequacy ratio of 71.21% provides a strong buffer for future growth. While the Net Interest Margin (NIM) saw a downtrend, management aims to stabilize it between 3.5% and 4%. The company's commitment to ESG is evident with an integrated ESMS into credit due diligence and a finalized ESG Roadmap.

In conclusion, PTC India Financial Services Limited is navigating a transformative phase with a clear strategy focused on sustainable growth, improved asset quality, and diversified financing. Despite some challenges like AUM moderation due to prepayments and NIM pressures, the operational momentum, strong sanctions, and proactive risk management position the company for continued progress and value creation for its stakeholders.