The shares of the company have jumped around 29% in April so far from its March 30 low of Rs 363.15 apiece. Its market capitalisation during the same period grew by more than Rs 34,270 crore to Rs 1.54 lakh crore.
The India Meteorological Department (IMD) has issued heatwave warnings for several parts of India, with temperatures soaring following a relatively mild start to the summer, largely due to frequent rainfall from western disturbances.
JM Financial, in its report, said that power demand had peaked in early March, but a sudden weather disturbance caused by a rare western disturbance beginning on March 20, with a 1,000 km cloud cover stretching from Afghanistan through Pakistan into India, brought widespread rain and unseasonably cold conditions.
Power demand, which peaked on March 10, cooled off as a result of falling temperatures. However, the massive cloud band across North India is now moving away. Skymet does not forecast any extreme heat in the plains of North India during April 2026 despite rising mercury, JM Financial said. However, it added that intense pre-monsoon heat is expected beginning mid-May. The domestic brokerage noted that the previous El Niño years have seen a strong surge in power demand, with 2026 likely to be no exception. PFC, which finances India’s power sector, is likely to benefit from the strong surge in power demand.
Additionally, state-owned NBFCs like PFC, along with REC, IRFC, and HUDCO, are likely to be classified as Upper-Layer NBFCs under the Reserve Bank of India’s (RBI) proposed shift to an asset-size-based threshold, financial experts said.
Last week, RBI proposed a significant overhaul of its framework for identifying Upper-Layer NBFCs (NBFC-UL), suggesting a move to a more transparent classification based on absolute asset size. Under the proposal, any NBFC with assets of Rs 1 lakh crore or more will qualify as Upper Layer, replacing the existing methodology that combines a top-ten asset ranking with a complex parametric scoring model.PFC shares have also been buzzing so far this year after Finance Minister Nirmala Sitharaman, while presenting the Union Budget on February 1, announced the restructuring of PFC and REC to help achieve scale and improve efficiency in the public sector NBFC space. The PFC board has approved the merger with REC.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)