PTC India Financial Services Ltd (PFS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Q2 and H1 FY '27 Investor Conference Call hosted by PTC India Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Ms. Priya Chaudhry from PTC Financials. Thank you and over to you Ms. Priya.
Priya Chaudhry (PTC India Financial Services Limited): Thank you. Good morning, everyone and welcome to the Q2 and H1 FY '27 investor call of PTC India Financials Limited. I'm Priya Chaudhry, Head, Investor Relations at PTC Financials. Q2 FY '27 marked a meaningful improvement in PFS's operating momentum with AUM returning to growth at 3,684 crores, a 25% growth rate, while the loan sanctions and disbursements reached their highest level in several years at 3,098 crores and 1,595 crores, respectively. This reflects our continued focus on core infrastructure financing, leveraging established relationships and our two decades of sector experience for stronger execution. Our strategy remains centered on quality-led and diversified infrastructure lending across ticket sizes and the broader value chain with focused exposure to select sunshine sectors and renewable energy, which now constitutes around 45% of our loan book. We remain client-focused and execution-oriented while maintaining disciplined underwriting and a strong focus on asset quality and portfolio monitoring. The quarter also saw fresh bank sanctions and drawdowns, strengthening funding availability. Our gross feed
Priya Chaudhry (PTC India Financial Services Limited): remains contained, supported by adequate provisioning. We remain committed to building sustainable growth with prudent risk management and long-term value creation. I would now like to introduce the senior management team present in today's call. Mr. Rajiv Malhotra, MD and CEO, he is joined by Mr. Dilip Srivastava, Director, Finance and CFO, and Mr. Sanjeev Kumar, Director, Operations. With this, I would now like to hand over the call to our MD and CEO, Mr. Rajiv Malhotra, for his opening remarks and update on the company's performance. Over to you, sir.
Rajiv Malhotra (PTC India Financial Services Limited): So, good afternoon, everybody, and, thank you for joining us this afternoon. Some of you would have gone through the numbers that we've already shared with you. Now, I'd just like to, explain what the company's intent has been, although we have said so earlier in time. I think this was a quarter of, setting the tone for what you will see more of in future. Like you said, focused, infrastructure remains the focus, quality, assets, increasing the book size and thereby, gathering value for, the company and its shareholders. Both on the asset side, where you see a growth in the numbers and that is, I believe, after a few quarters. So, it's a reversal of a trend and, then, if you look at the liability side, again, you'll see a footprint in the market. As we go further, we expect, the performance metrics to become better, like I or we've been communicating in the past, give us a couple of quarters when you will find spreads, metrics, tightening for a bit because we are in the portfolio building phase. Next couple of quarters this year, you will see us just following up on the start made now. And, with that, I'll, close my remarks. And, Priya, back to you.
Priya Chaudhry (PTC India Financial Services Limited): Before handing over to Sanjeev, sir, for comments on the business.
Sanjeev Kumar (PTC India Financial Services Limited): Thank you, Priya. Good evening, everyone. At the outset, I'd like to mention that, as we have closed, H1 27, we have sharpened our focus on building a meaningful, resilient, and high-quality infrastructure lending portfolio. And, as already explained by MD, also, our our objective has been, going forward our objective has been going forward will be, to leverage PFS' high-core, strength in infrastructure financing, go back to our basics, deepen our existing, client relationship, and drive sustainable growth across large, medium, and small ticket size opportunities, with a balanced, focus on both private sector and PSU borrowers. I'm pleased to share that we have made some very good progress during Q2, and the business momentum built during the quarter is reflected in our operating performances also. Our loan assets have moved to an upward trajectory after a gap of 10 quarters, reaching, Rs. 3,684 crore. Sanctions during the quarter were at the 36-quarter high, at 30- Rs. 3,355 crores, with the net sanction of Rs. 3,098 crore, while disbursements were at 19-quarter high of Rs. 1,595 crore. These are encouraging indicators of the traction we are seeing across our origination and execution, and, importantly, demonstrate that the strategy we put in place at the beginning of the year is beginning to translate into the business outcomes. The momentum has been built through the quarter, and our focus is now, is to carry this forward through the remainders of, FY '27 and beyond. We have a strong disbursement pipeline for the current quarter also, while simultaneously building a quality pipeline that can support sustained growth over the medium term. Our approach continues to be centered around quality-led growth, with disciplined underwriting. We remained focused, on understanding and underlying business and cash flows, appropriate structuring, and maintaining the right balance between growth
Sanjeev Kumar (PTC India Financial Services Limited): the risk. At the same time, we have adopted a client focused and execution oriented approach, with greater engagement with our clients and a focus on faster turnaround in evaluation and execution of opportunities. Deepening our existing relationship remains an important part of our origination strategy alongside developing new relationships. We are also pursuing a broad based lending strategy across ticket size, enabling us to participate in a wider range of infrastructure opportunities. Our origination is diversified across the infrastructure value chain rather than being concentrated in any one segment. Within the broader infrastructure universe, we are maintaining a focused exposure to select sunshine sectors where we see sustainable growth opportunities and where PFS can leverage its domain understanding and underwriting capabilities. This approach is intended not only to support portfolio diversification quality, but also to improve the overall risk adjusted returns and NIM profile of the portfolio. Another area where we have seen encouraging traction is renewable energy and energy transition. Our renewable energy portfolio has increased by approximately 45% during this quarter, reflecting our continued focus on sustainable infrastructure and our ability to identify and execute opportunities in this segment. This includes opportunities across renewable energy as well as newer area of energy transition ecosystem. Overall, H1 has been a period of stronger business activity, improved execution, and renewed traction in our core infrastructure franchise. Going forward, our focus will remain on converting the existing pipeline, building strong and diversified book, deepening client relationships, and maintaining discipline in underwriting. Our objective will be to ensure momentum we have created is sustained, while building a high quality and resilient infrastructure portfolio that can support consistent growth over the coming years. That's all from our business update. Thank you.
Priya Chaudhry (PTC India Financial Services Limited): Sir will just give an update on the financial numbers of the company.
Dilip Srivastava (PTC India Financial Services Limited): Good afternoon to all of you. In Q2 FY '27, we witnessed a significant increase in business volume with PFS regarding loan sanction of 3098 crores and disbursement of 1595 crores during the quarter. This translated into a positive trajectory in the loan book with the loan assets increasing to 3684 crores as on 30th September 2026 from 2946 crores in comparison to the previous quarter 30th June 2026 representing a sequential increase of approximately 25%. Total income for the quarter is stood at 114 crores while profit after tax is stood at 44 crores. Return on assets annualized basis and return on net worth annualized basis is a 3.65% and 5.64% respectively. Interest spread improved to 1.18% during Q2 FY '27 reflecting an improvement in the lending spread during the quarter. Asset quality improved during the quarter with gross stage-3 assets declining to 126 crores from 190 crores in the Q1 FY '27. The company continued to maintain a comfortable liquidity position with a positive cumulative net cash flow across all the reported LM maturity buckets. The liquidity coverage ratio remain strong providing adequate liquidity headroom. Another positive development during the quarter was strengthening of our funding position supported by a fresh sanction of rupees 200 crores from Central Bank of India which also marked the addition of a new bank in the company lender base. We also have a in-principle sanction from another bank and we are expecting for formal sanction letter to be received very soon. We consider to engage with both the existing and prospective lender across segments with a focus on further diversifying and strengthening our funding base going forward. Overall, Q2 FY '27 reflected a strengthening financial position characterized by significant increase in disbursement, growth in loan assets, improvement in interest spread, lower gross stage-3 assets, and a comfortable liquidity position. With this, I conclude my update on the financial number.
Priya Chaudhry (PTC India Financial Services Limited): We will now open the floor to Q&A.
Moderator: Thank you very much. We will now begin the question and answer session.
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