Power Finance Corp: Key takeaways from 4QF26 analyst meeting

研报英文原文证据摘录

Power Finance Corp: Key takeaways from 4QF26 analyst meeting

Update

May 13, 2026 06:54 PM GMT

Morgan Stanley India Company Private Limited+MPower Finance Corp | Asia Pacific Kushan Parikh, CFA

Equity Analyst

Key takeaways from 4QF26 Kushan.Parikh@morganstanley.comSubramanian Iyer +91 22 6118-1082

Subramanian.Iyer@morganstanley.com +91 22 6118-2234

analyst meeting Meera Midha

Research Associate

Meera.Midha@morganstanley.com +91 22 6118-1232

Key Takeaways Sakshi V Chaplot

Management guided for 10% YoY loan growth in F27 (vs. 7% in F26), owing to Sakshi.Chaplot@morganstanley.com +91 22 6118-2228

Apurva R Deshmukh

lower prepayments amid stable repo rates (vs. declines in F26).

It guided for 2.4-2.5% loan spreads in F27 (vs. 2.46% in F26), due in part to Apurva.Deshmukh@morganstanley.com +91 22 6118-2010

Lavish Porwal

competitive pressure on yields and potential forex impact on borrowing costs. Research Associate

Lavish.Porwal@morganstanley.com +91 22 6118-1197

It guided for credit costs to normalize in F27 given lower stock of NPAs and,

hence, lower incremental recoveries vs. prior years. Power Finance Corporation Ltd. (PWFC.NS, POWF IN)

It expects to complete the merger with REC by 1 Apr 2027, subject to regulatory, India Financials | India

Stock Rating Overweight

statutory approvals. Specific details of the merger remain under discussion.

Industry View Attractive

Price target Rs525.00

Loan growth: The company highlighted that a large part of the shorter tenor (~12 Up/downside to price target (%) 18

Shr price, close (May 13, 2026) Rs446.00

months) loans to discoms have been replaced with higher tenor (3-7 years) ones. Mkt cap, curr (mn) Rs1,471,845

Avg daily trading value (mn) Rs2,798

Hence, the churn should be less, driving lower disbursements as well as lower loan