Summary
PTC India Financial Services Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 21, 2026 10:00 AM IST
Event Participants
Executives 5 Dilip Srivastava (CFO), Kalur Srinivas (President Treasury), Priya Chaudhary (Head IR), R. Balaji (MD & CEO), Sanjeev Kumar (Director Operations)
Analysts 10 Amey Chheda, Chanan Mallu, Chintan Mehta, Hukam Chand Singal, Jay Raghavan, Jay Suratwala, Kartik Sharma, Manoj Pandey, Nishita, Simran Sankla, Vishal Biraia, Vishal Mehta
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Disbursements | ₹609 crores | +13-quarter high; exceeded H1 FY26 cumulative disbursements of ₹464 crores. |
| Loan Sanctions | ₹1,188 crores | Maintained >₹1,000 crores for second consecutive quarter; indicates strong pipeline. |
| PAT | ₹49 crores | Positive performance for Q3; 9M FY26 PAT stands at ₹274 crores. |
| Gross AUM | ~₹3,700-3,800 crores | Moderated due to high prepayments from customers with lower rate expectations. |
| Net NPA | ₹47 crores | Significant reduction; no fresh slippages in the portfolio disbursed since FY 2018. |
| NIM | 3.80% | Slight downtrend due to competition; management targets stabilizing at 3.5%-3.8%. |
| Cost of Funds | ~7.2% - 7.5% | Decreased QoQ; management expects further 15-20 bps reduction over next 2-3 quarters. |
| Capital Adequacy (CRAR) | 71% | Robust capital buffer well above the 15% regulatory requirement. |
| Net Worth | ₹3,034 crores | Up from ₹2,978 crores in Q2 FY26. |
| Return on Assets (RoA) | 3.73% | 9M FY26 RoA stands at 6.73%, aided by legacy recoveries earlier in the year. |
Geographic & Segment Commentary
Renewable Energy & Emerging Infra: Focus has shifted toward solar, wind, and “sunrise” sectors like Electric Vehicles (EV), Battery Swapping, and Compressed Bio-Gas (CBG). Management is avoiding low-margin solar panel manufacturing due to high competition, focusing instead on higher-yield project loans.
Digital & New-Age Infrastructure: The company made its first foray into data centers and their value chain during the quarter. This segment is viewed as a key pillar for high-margin growth and diversification away from traditional power.
SME & Structured Finance: Leveraging a data bank of 400 existing borrower relationships to co-create structured financing solutions. This segment is expected to show meaningful disbursement growth starting Q1-Q2 FY27.
Company-Specific & Strategic Commentary
Board Reconstitution: The Board and committees are now fully functional with three new Independent Directors joined in Q3, resolving previous governance-related execution delays.
Liability Diversification: Treasury is actively moving to diversify beyond bank borrowings into the bond market by early FY27 to improve transmission and reduce costs.
Risk-Calibrated Growth: Deliberate strategy to reduce average ticket sizes to build a more granular, less volatile portfolio and mitigate concentration risk.
Private Sector Focus: 100% of Q3 disbursements were to the private sector; long-term target portfolio mix is 2/3rd private and 1/3rd public sector.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 Disbursements | ₹2,500 crores | Requires ₹1,200-₹1,500 crore in Q4 based on strong existing sanction pipeline. |
| AUM Growth | +15% QoQ (Q4 FY26) | Expected “inflection point” as disbursements outpace the current prepayment cycle. |
| Interest Spread | 150 bps | Management targeting a stable 1.5% spread to deliver long-term sustainable RoA. |
| Dividend | Resumption likely | Management hinted at potential dividends following FY26 annual results as resources stabilize. |
| Capital Raise | Early FY27 | Process to initiate following stabilization of credit ratings and liability sourcing. |
Risks & Constraints
| Risk | Context |
|---|---|
| Prepayment Risk | High-interest rates have led borrowers to prepay loans, causing AUM contraction; management believes this cycle is nearing its end. |
| Asset Concentration | Legacy issues in a single NPA (Danu Wind Parks) remain; resolution is via NCLT/ARC but timeline may spill into Q1 FY27. |
| Liability Sourcing | Previous governance shocks delayed resource mobilization; credit rating upgrades are dependent on successfully raising fresh bank lines. |
| Competitive Pressure | Larger players (PFC/REC/IREDA) have lower cost of funds, forcing PFS to compete in niche, higher-yield segments. |
Q&A Highlights
Asset Quality & Resolution
- Question: What is the status of the Danu Wind Parks resolution? (Simran Sankla)
- Answer: Multiple paths are being pursued: NCLT filing, ARC bidding, and a one-time settlement offer from the developer. Clear visibility on funds is expected by the first month of FY27, with Q1 resolution likely (Sanjeev Kumar).
AUM Growth & Prepayments
- Question: Why isn’t disbursement growth reflecting in revenue/AUM? (Jay Suratwala)
- Answer: High prepayments and December-heavy disbursements meant interest income starts in Q4. AUM is at a “bottom” and should grow 15% in Q4 (R. Balaji).
Margins & Yields
- Question: Are NIMs sustainable at 3.8%? (Nishita)
- Answer: The industry is facing heightened competition. The endeavor is to maintain portfolio yields at 10.5%, resulting in NIMs between 3.5% and 4.0% (R. Balaji).
Liability & Ratings
- Question: What are the steps for a rating upgrade? (Vishal Biraia)
- Answer: Success in raising additional liabilities is the key remaining hurdle. Treasury is in talks with 2-3 banks for sanctions before March 2026 (R. Balaji).
Key Takeaway
PTC India Financial Services reached a strategic inflection point in Q3 FY26, reporting a 13-quarter high in disbursements at ₹609 crores and reconstituting its Board to resolve legacy governance concerns. While AUM remained pressured by prepayments, the company maintained strong asset quality with no fresh slippages since FY18 and a minimal Net NPA of ₹47 crores. Strategic focus has shifted toward high-margin emerging sectors like data centers, EVs, and CBG, with a deliberate move toward more granular ticket sizes. Management guided for an aggressive Q4, targeting ₹1,200-₹1,500 crores in disbursements to reach an annual target of ₹2,500 crores, which is expected to drive 15% QoQ AUM growth. The primary watch-point remains the successful mobilization of new bank liabilities and the final resolution of the Danu Wind Parks NPA in early FY27.
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