In a market charged with volatility, where stocks swing up and down like power lines in a storm, some of the stocks grab the investors attention, no matter the season. Among them are two government-backed financial giants powering India’s energy dreams: Power Finance Corporation (PFC) and REC.
But when it comes to choosing between the these two stocks, which one makes a stronger case for your portfolio? As both companies gear up to release their Q4FY25 results, here are four key factors that you need to know-
PFC Vs REC: Share performance
When it comes to stock performance of these companies, both stocks have had their moments but the recent trend tells a mixed story.
PFC delivered a 7% return in the last 5 days and 5% gain in the past month. However, it saw a 10% dip over six months and is down 6% in 2025 so far. On a yearly basis though, PFC share price has still managed a 7% gain. The 52-week range of PFC stands between Rs 357.25 and Rs 580 with a market cap of Rs 1.40 lakh crore.
REC, on the other side, has been more volatile. The company posted a 9% gain in the last week, but only a marginal 1% rise over the past month. Over six months, the share price of REC is down 22% and has lost 0.2% over the last year. Its 52-week range is Rs 357.35 to Rs 654.
PFC Vs REC: Dividend payouts
PFC declared four interim dividends in FY25 alone, each of Rs 3.50 per share, except one at Rs 3.25. Add to that a final dividend of Rs 2.50 for FY24.
REC has not lagged behind. In FY25 so far, it announced four interim dividends – Rs 3.50, Rs 4, Rs 4.30, and Rs 3.60 per share.
PFC Vs REC: Q3FY25 earnings recap
PFC reported a net profit of Rs 7,759.56 crore, up 23% YoY, and revenue rose 14% to Rs 26,798.04 crore. Net Interest Income stood at Rs 4,694 crore, and the company’s asset quality remained healthy with gross NPA improving to 2.68% and net NPA at 0.71%. However, loan growth was slightly below its target, at 10% YoY versus the goal of 14%.
REC posted a net profit of Rs 4,076.35 crore, also a 23% YoY increase. Total income jumped 18.4% to Rs 14,286.91 crore, with earnings per share (EPS) rising to Rs 15.50. Profit before tax came in at Rs 5,180.97 crore, and while expenses rose, the company maintained profitability.
PFC Vs REC: Company profiles
PFC, founded in 1986, is a Maharatna CPSE and India’s largest NBFC in the power space. It funds about 23% of India’s installed power generation capacity, offering loans across generation, transmission, and distribution. It’s also the nodal agency for flagship power reforms like UMPPs and R-APDRP.
REC, though smaller in size, focuses heavily on rural electrification and renewable energy. It has a presence in infrastructure development, particularly in underserved areas.