The renewable energy sector continues to demonstrate remarkable growth and strategic expansion. Recent developments highlight the increasing focus on transmission infrastructure to support the growing clean energy landscape.
A leading power finance and consulting company has taken a significant step by establishing a new subsidiary dedicated to developing critical transmission capabilities. This strategic move aims to enhance the integration of renewable energy into the national grid.
The newly formed special purpose vehicle will focus on a transmission system project in Gujarat, targeting the development of substantial renewable energy capacity.
Share Price Movement
The share price of Power Finance Corporation Limited went up by 1.6 percent to Rs. 503 per share on Tuesday, an increase from its previous close of Rs. 495.75 per share. The market capitalisation now stands at approximately Rs. 1,65,879 crore as of December 03, 2024.
What happened
The Ministry of Power has appointed PFC Consulting Limited (PFCCL) to facilitate the selection of a Transmission Service Provider (TSP) for a new transmission project. To manage preparatory activities such as surveys, land acquisition, and forest clearance, PFCCL has established a Special Purpose Vehicle (SPV). This SPV will be transferred to the winning bidder after the competitive bidding process for project development.
As part of this initiative, PFCCL has launched Kurnool Transmission Limited, a wholly owned SPV company, to develop a transmission system project capable of handling 3 GW of renewable energy from Gujarat’s Raghaneeda region.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Power Finance Corporation’s consolidated revenue from operations has increased by 14.8 percent YOY from Rs. 22,391 crore in Q2 FY24 to Rs. 25,722 crore in Q2 FY25 and increased by 4 percent QoQ from Rs. 24,717 crore in Q4 FY24.
The company’s consolidated net profit has increased by 8.8 percent, from Rs. 6,628 crore in Q2 FY24 to Rs. 7,215 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 0.45 percent QoQ from Rs. 7,182 crore.
Market Outlook
The Indian power sector is undergoing a significant transformation, driven by the government’s efforts to diversify the energy mix and promote renewable sources. The sector plays a crucial role in the country’s infrastructure and economic development, providing fuel to sustain various industries and power the nation’s growth.
India is the third-largest producer and consumer of electricity worldwide, after China and the USA. The government is taking various initiatives to boost the power sector, such as the PM-KUSUM program, the National Hydrogen Mission, and the Scheme for Viability Gap Funding (VGF) for Battery Energy Storage Systems. These measures aim to increase renewable energy capacity, improve efficiency, and support the transition towards a more sustainable energy landscape in India.
Shareholding Pattern
As of the December 2024 shareholding pattern, Power Finance Corporation Limited is primarily held by the promoters at 55.99 percent, foreign institutional investors hold 17.74 percent, and the public with 8.83 percent.
About Company
Power Finance Corporation Ltd. (PFC), established in July 1986, is a leading financial institution dedicated to empowering India’s power sector. Operating under the Ministry of Power, Government of India, PFC has held the prestigious ‘Maharatna’ status since October 2021. Headquartered in New Delhi, it serves as the largest lender to the power industry, contributing to 23% of India’s installed power capacity. With a workforce of approximately 550, PFC drives innovation and financial support across the sector.
PFC specialises in providing loans for power generation, transmission, and distribution projects, ensuring robust sectoral growth. It also offers diverse financing solutions, including equipment leasing and transitional financing. Beyond the power sector, PFC has broadened its scope to support infrastructure initiatives such as coal mining and electric vehicle charging. Additionally, PFC acts as the nodal agency for government programs like Ultra Mega Power Projects and the Integrated Power Development Scheme.
PFC showcases strong financial health and effective credit management. Its strategic diversification of funding, including raising $1.3 billion internationally, positions it as a key enabler of large-scale infrastructure projects. PFC remains integral to India’s energy landscape, driving sustainable growth and infrastructure modernisation.
Written By Fazal Ul Vahab C H
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