At a Glance
PTC India Financial Services Ltd (PFS) just dropped its Q1 FY26 results like a Netflix cliffhanger. PAT zoomed 207% YoY to ₹136.6 Cr, proving it can make money when it feels like it. But sales (income) took the express elevator down 11.9% YoY to ₹142 Cr – classic PFS, giving investors both a heart attack and a hug in the same quarter. Asset quality improved, disbursements hit ₹138 Cr, and the stock is still trading at a P/E of just 8.5 – cheaper than a roadside chai. Yet, no dividends for shareholders – because who needs happiness when you have hopes?
Introduction
Welcome to the saga of PTC India Financial Services (PFS) – an Infrastructure Finance Company that finances everything in the energy value chain, from power plants to e-mobility dreams. It’s like that rich uncle who loans money but never gives gifts (read: dividends). Despite a decade of sluggish growth, this quarter PFS has shown it can still flex with a 3x PAT jump. But investors are torn – is this a real turnaround or just another “Netflix pilot” that never gets a Season 2?
Business Model (WTF Do They Even Do?)
PFS is an RBI-registered NBFC with Infrastructure Finance Company status. Translation? It throws money at power projects (generation, transmission, distribution), roads (HAM/Annuity), renewable energy, fuel infra, and even e-mobility – basically anything with “infra” in the pitch deck. They earn through interest income and equity investments, while occasionally playing investment banker in disguise. Think of PFS as the quiet middleman who enables India’s power dreams – but still needs caffeine injections to grow profits consistently.
Financials Overview
For FY25, revenue slumped to ₹638 Cr (down from ₹761 Cr in FY24). PAT, however, rose to ₹217 Cr from ₹161 Cr – proving cost-cutting and asset quality magic work.
Q1 FY26 brought ₹136.6 Cr PAT (207% YoY) on ₹142 Cr income (-12% YoY). ROE sits at 8.2%, and ROCE at 9.9% – barely above a savings account, but hey, it’s positive. Borrowings have nosedived to ₹2,861 Cr in FY25 (from ₹10,229 Cr in FY18), which is commendable.
Valuation
Let’s break down the fair value with three classic tricks:
- P/E Method
- EPS (TTM): ₹4.8
- Industry P/E (Median peers): 25x
- Fair Value = 4.8 × 25 = ₹120
- EV/EBITDA Method
- EBITDA (TTM): ₹666 Cr
- Net Debt: ~₹2,300 Cr
- EV/EBITDA (Peers ~12x)
- EV = 666 × 12 = ₹7,992 Cr
- Minus Debt: ₹2,300 Cr
- Equity Value = ₹5,692 Cr
- Fair Value per Share ≈ ₹88
- DCF (Lazy Version)
- Assume FCF growth 8%, WACC 12%
- Present Value ≈ ₹100/share
Fair Value Range: ₹88 – ₹120.
At CMP ₹41, it’s like buying a Ferrari at Maruti prices – but with engine uncertainty.
What’s Cooking – News, Triggers, Drama
- 207% YoY PAT Growth – Did someone say turnaround?
- Asset Quality Improving – NPAs shrinking, fewer sleepless nights.
- E-mobility Projects – betting on EV infra; could be a long-term kicker.
- No Dividend – shareholders crying in a corner.
- Stock -28% YoY – Mr. Market is skeptical; can PFS prove it wrong?
Balance Sheet
| FY25 (₹ Cr) | Assets | Liabilities | Net Worth | Borrowings |
|---|---|---|---|---|
| 5,683 | 5,683 | 2,754 | 2,861 |
Auditor’s Joke: Assets look fine, borrowings shrinking, but growth? Missing like a lost file in a government office.
Cash Flow – Sab Number Game Hai
| Year | Ops | Investing | Financing |
|---|---|---|---|
| FY23 | 1,887 | 259 | -2,459 |
| FY24 | 2,563 | -689 | -1,669 |
| FY25 | 1,139 | 776 | -1,383 |
Remark: Operating cash positive, financing cash out (debt repayments), investing fluctuates. Classic NBFC cash yoga.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 8.2% |
| ROCE | 9.9% |
| P/E | 8.5 |
| PAT Margin | 108% |
| D/E | 1.0 |
Auditor’s Roast: Low ROE and ROCE, but cheap valuation. PAT margin >100%? Because negative expenses make magic.
P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 797 | 670 | 176 |
| FY24 | 638 | 606 | 217 |
| FY25 | 614 | 666 | 309 |
Commentary: Revenue sinking, profits rising – like a diet plan that works only for selfies.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bajaj Finance | 73,107 | 17,425 | 31.5 |
| Shriram Finance | 43,778 | 8,508 | 14.0 |
| Muthoot Finance | 20,214 | 5,332 | 19.8 |
| PTC India Fin | 614 | 309 | 8.5 |
Verdict: PFS is the poor cousin at the NBFC wedding – underdressed but might surprise everyone on the dance floor.
Miscellaneous – Shareholding, Promoters
- Promoters: 65% (PTC India Ltd – the boss)
- FIIs: 2.2% (smart money sniffing value?)
- DIIs: 5.1%
- Public: 27.7%
- No dividends since FY22 – because apparently investors like dry cakes.
EduInvesting Verdict™
PFS is the perfect case study of an NBFC stuck between glory and obscurity. The company’s fundamentals show mixed signals – shrinking revenues, improving profitability, and declining borrowings. The 207% PAT growth in Q1 FY26 looks juicy, but without consistent topline growth, it risks being a one-season wonder.
Past Performance: Revenue has been declining (-14% CAGR 5Y), but PAT has improved (+15% CAGR 5Y) thanks to lower interest costs. Stock has underperformed (-28% in 1 year) despite a 3-year CAGR of 40%.
Upcoming Headwinds:
- Regulatory changes in NBFC sector
- Execution risk in renewable/e-mobility financing
- Lack of dividend keeps investors grumpy
SWOT Analysis:
- Strength: Cheap valuation, improving asset quality
- Weakness: Low ROE, inconsistent revenue
- Opportunity: EV infra, renewables, turnaround bets
- Threat: Policy risk, credit quality shocks
Final Word:
At ₹41, PFS trades like a forgotten penny stock but carries a turnaround narrative. If management sustains this profit trend and finally sprinkles some dividend love, this stock could graduate from “infra finance nobody” to “hidden gem”. Until then, it’s a high-risk, high-potential story.
Written by EduInvesting Team | 30 July 2025SEO Tags: PTC India Financial Services, PFS Q1 FY26, NBFC turnaround, Infra Finance
