Incorporate in 1986, Power Finance Corporation Limited (PFC) is one of the leading financial institutions in India. It is focused on the power sector. PFC works with Government of India (GoI) agencies, state governments, power sector utilities, other power sector intermediaries, and private sector clients for the development and implementation of policies and structural and procedural reforms in the power sector in India.
PFC is registered with the RBI as a non-deposit taking systemically important NBFC. PFC was granted the ‘Navratna’ status by the GoI in 2007.
Power Finance Corporation Limited (PFC), a Government of India enterprise, has announced the launch of its secured, redeemable Non-Convertible Debentures (NCDs) offering attractive returns of up to 7.05% per annum.
Issue Dates
Open Date: Friday, 16 January 2026
Close Date: Friday, 30 January 2026 (Issue may close early on full subscription)
The NCDs are secured, meaning they are backed by assets of the company, offering an added layer of safety to investors.
NCD Credit Rating
The issue has received the highest credit rating (AAA / Stable) from leading rating agencies:
CARE Ratings: AAA / Stable – Highest degree of safety
CRISIL Ratings: AAA / Stable – Lowest credit risk
ICRA Ratings: AAA / Stable – Highest degree of safety
A AAA rating indicates very strong capacity to meet financial obligations.
NCD Coupon Rates
Series 1: Secured NCD with a tenor of 5 years, offering annual interest payment. The coupon rate is 6.85% per annum with an effective yield of 6.85%. Amount payable on maturity is ₹1,000.
Series 2: Secured NCD for 10 years with annual interest payment. It carries a coupon rate of 7.00% per annum and an effective yield of 6.99%. Maturity amount is ₹1,000.
Series 3: Secured NCD with a tenure of 121 months. There is Cumulative payment at time of maturity. The effective yield stands at 6.80%
Series 4: Secured NCD having a tenor of 15 years with annual interest payment. The coupon rate is 7.05% per annum and the effective yield is 7.04%. Maturity amount is ₹1,000.
Series 5: Secured cumulative NCD with a tenure of 15 years. There is Cumulative payment at time of maturity. The effective yield is 7.05%,
Company Financials (Restated Consolidated)
Power Finance Corporation Limited has reported steady growth in its financial performance over the last few years. As of 30 September 2025, the company’s total assets stood at ₹12.22 lakh crore, up from ₹11.78 lakh crore in March 2025 and ₹10.39 lakh crore in March 2024, reflecting consistent expansion in its asset base.
In terms of income, PFC recorded a total income of ₹1.06 lakh crore for FY2025, compared with ₹91,174 crore in FY2024 and ₹77,625 crore in FY2023, indicating stable revenue growth. Profitability also remained strong, with the company reporting a profit after tax of ₹30,514 crore in FY2025, compared to ₹26,461 crore in FY2024 and ₹21,179 crore in FY2023.
Objects of the Issue
Onward lending and financing activities
Refinancing existing borrowings
Debt servicing (interest and principal repayment / prepayment)
General corporate purposes
Debenture Trustee
Beacon Trusteeship Ltd.
NCD Registrar
KFin Technologies Ltd.
Disclaimer: This article is for informational purposes only and not investment advice. NCD investments are subject to market and credit risks. Readers should read the offer document carefully and consult a financial advisor before investing.
