Synopsis:
Psu stock in which GQG Partners made a fresh investment in Q1FY26A leading PSU in the financial sector saw fresh investment from GQG Partners in Q1FY26, reflecting investor confidence. The firm reported strong revenue and profit growth, low NPAs, robust disbursements, and continued focus on government-backed power sector lending.

India’s power sector has a total installed capacity of about 476 GW as of June 2025. The country is undergoing a major transition towards clean energy, with non-fossil fuel sources accounting for nearly half of this capacity, at 235.7 GW. This includes significant contributions from solar power at 110.9 GW and wind power at 51.3 GW.

With a market capitalization of Rs 1.36 lakh crore, the shares of Power Finance Corporation Ltd closed at Rs 415.00 per share, decreased around 1.68 percent as compared to the previous closing price of Rs 422.10 apiece

GQG Partners, a well-known foreign institutional investor, has acquired 37,067,024 equity shares, representing a 1.1% stake in the company as of June 2025. This fresh investment reflects GQG’s continued confidence in Indian equities. As per recent filings, GQG publicly holds 12 stocks in India, with a combined net worth exceeding Rs. 70,725.2 crore, showcasing its sizable market presence.

Also read: Chemical stock hits 20% upper circuit after announcing 429% YoY profit surge & FY26 guidance

Looking forward to the company’s financial performance, revenue magnified by 21 percent from Rs 24,141 crore in Q4FY24 to Rs 29,265 crore in Q4FY25, Further, during the same time frame, net profit zoomed by 11 percent from Rs 7,556 crore to Rs 8,358 crore.

In FY25, the company maintained a strong asset profile with a Gross NPA ratio at 1.94% and Net NPA at just 0.39%. Loan assets stood at ₹5.43 lakh crore, with ₹1.68 lakh crore disbursed. Lending remained government-heavy (77%), ensuring stability. Notably, 80% provisioning was maintained for Stage-III NPAs, and Rs. 1,661 crore worth of assets are under advanced resolution.

Power Finance Corporation Limited is primarily engaged in providing financial assistance to the power sector. The Company’s fund-based products include project term loans, lease financing for the purchase of equipment, short/medium-term loans to equipment manufacturers, and others. The company also started financing in the auto industry, especially in EV vehicles.

Written by Abhishek Singh

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