The short-term facilities have been reaffirmed at 'Crisil A1'.

Crisil Ratings stated that the ratings were placed on watch in October 2025, following the resignation of three independent directors of the company citing an unfavorable company environment that hindered their ability to function independently.

The independent directors did not provide specifics in their resignation letters. PFS, in turn, stated that the outgoing directors had been actively participating in all board and committee meetings and had not raised any concerns previously.

Subsequently, the company appointed three new independent directors, two of whom are also independent directors on the board of PTC India Limited, thereby ensuring compliance with the regulatory requirements.

Crisil Ratings has now resolved the rating watch and reaffirmed the rating of the company. The board has been reconstituted, and since then all committees are operational and the company's regular business activities, including the timely publication of financial results, are on track.

The ratings are also supported by the company's adequate capital position, with a net worth of Rs 3,034 crore and gearing of 0.7 times as of 31 December 2025.

The 'negative' outlook on the long-term rating reflects the prolonged delay in normalization of resource mobilization. This in turn limits the ability of the company to scale up disbursements, thereby impacting its market position.

The recent resignation of the managing director (MD) and chief executive officer (CEO), Mr. Balaji, on 30 March 2026, is expected to further impede the normalization of fresh fund raising.

As of December 31, 2025, assets under management (AUM) stood at Rs 3,503 crore, declining from Rs 4,735 crore as of March 31, 2025.

While incremental disbursements have shown an improvement, reaching Rs 1,073 crore in the first nine months of fiscal 2026, compared to Rs 916 crore, this growth has been largely funded by repayments and prepayments, with no incremental fund-raising since April 2024.

Notably, the company has raised only Rs 400 crore in incremental borrowing since January 2022.

Crisil Ratings will continue to monitor the company's funding profile closely and assess its ability to secure incremental funding at reasonable costs.

PTC India Financial Services is promoted by PTC and provides financial services and related products to companies in the energy value chain. As on December 31, 2025, gross loan book was Rs 3,503 crore.

For the nine-month period ended December 31, 2025, PAT stood at Rs 274 crore on total income (net of interest expense) of Rs 219 crore, against Rs 159 crore and Rs 233 crore, respectively, for the corresponding period of previous fiscal.