Bumper Dividend! Power Finance Corporation Rewards Investors With 36.5% Dividend; Should You Buy PFC Shares?

Dividend Alert: Shares of Power Finance Corporation (PFC) remained under pressure on Monday, despite posting a surge in Q2FY25-26 profit and announcing 36.5% interim dividend for FY26. The company has fixed the dividend record date for November.

PFC share price was trading 1.46% lower at Rs 374.9 per share on BSE with a market capitalisation of Rs 1,23,720.81 crore. The stock had touched an intraday high mark of Rs 381.65 per share and an intraday low mark of Rs 374.25 per share.

PFC Dividend

The firm has announced its second interim dividend of 36.5% for its shareholders. The company had reported around Rs 3.65 per share on the face value of Rs 10 each.

PFC's board of directors had approved an "interim dividend (@ Rs 3.65/- (Rupees Three and Paisa Sixty Five only) per equity share (i.e. @ 36.5 %) (Subject to deduction of TDS) on the face value of the paid-up equity shares of Rs 10/- each for the FY 2025-26."

PFC Dividend Record Date: How To Get Eligible For Dividend?

PFC's board of directors has fixed 26th November as the dividend record date. For investors to get the benefit of the PFC dividend, they are required to own the company shares on or before the dividend record date, ie 26 November. The second interim dividend for FY26 will be paid to investors on or before 6 December 2025.

PFC Share Price Recommendation

Power Finance Corporation (PFC) reported a net profit of Rs 5,743.25 6 crore in Q2FY26. The firm's net revenue for the quarter stood at Rs 28,890.24 crore. Power Finance Corporation's PAT is expected to increase around 10% YoY in the second half of FY26, as per Motilal Oswal.

The brokerage has given a 'buy' rating for the stock with a target price of Rs 485 per share on BSE. "We estimate a disbursement/advances/PAT CAGR of 11%/12%/10% over FY25-FY28E, an RoA/RoE of 3.1%/18%, and a dividend yield of ~5.5% in FY28E. We reiterate our BUY rating with an SoTP (Sep'27E)-based TP of INR485 (premised on 1x target multiple for the PFC standalone business and INR151/share for PFC's stake in REC after a hold-co discount of 20%)," stated MOFSL in its report on Monday.

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