Dividend Delight: Maharatna PSU To Pay 60% Dividend; Merger With REC In Focus; Buy PFC Before Record Date?

Dividend Delight: Shares of Power Finance Corporation Limited (PFC) closed higher on Tuesday, February 17, as investors positioned themselves ahead of the Maharatna PSU's upcoming dividend record date later in the week. The stock is also drawing attention amid developments surrounding its proposed merger with REC, keeping market participants firmly focused on the counter.

PFC shares closed 1.26% at Rs 416 per share on BSE with a market capitalisation of Rs 1,37,581.24 crore on Tuesday. The stock had dipped to an intraday high of Rs 418 per share and an intraday low of Rs 409 per share.

PFC Dividend

PFC's board of directors in February, had approved an interim dividend of Rs 4 per equity share with a face value of Rs 10. All the company investors owning the stock on or before the dividend record date would be eligible for the payout.

PFC Board had approved the "declaration of 3rd interim dividend of Rs 4.00/- (Rupees Four only) per equity share (i.e. @ 40 %) (Subject to deduction of TDS) on the face value of the paid-up equity shares of 10/- each for the FY 2025-26."

PFC Dividend Record Date

PFC board of directors had fixed 20 February as the dividend record date. "The 20.02.2026 (Friday) shall be reckoned as the 'Record Date' for the purpose of ascertaining the eligibility of shareholders for payment of 3rd Interim Dividend for the FY 2025-26."

How To Get Eligible For PFC Dividend?

It is important for shareholders to own PFC stock on or before the dividend record date, ie Friday, February 20.

PFC Share Price Recommendation

Brokerage Motilal Oswal, in its report released on 11 February, gave a 'Buy' recommendation for the PFC shares. The brokerage has maintained a buy rating for the PSU stock, indicating a 21% upside in its valuation.

"We estimate a disbursement/advances/PAT CAGR of 11%/13%/8% over FY26-FY28, an RoA/RoE of 3%/18%, and a dividend yield of ~4.9% in FY28. We reiterate our BUY rating with an SoTP (Dec'27E)-based TP of INR500 (premised on a 1x target multiple for the PFC standalone business and INR144/share for PFC's stake in REC after a hold-co discount of 20%)," noted the brokerage in its report.

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