Budget 2026: PFC, REC shares jump today; here is the trigger

Shares of Power Finance Corporation Ltd (PFC) and REC Ltd rose sharply during Sunday's special trading session after Finance Minister Nirmala Sitharaman outlined a proposal to restructure the two Central Public Sector Enterprises (CPSEs) as part of broader non-banking financial company (NBFC) reform in the Union Budget 2026.

PFC jumped 5.90 per cent to hit a day's high of Rs 401.75, while REC advanced 4.29 per cent to Rs 380 level.

JM Financial said PFC delivered strong Q3 FY26 results, with revenue rising 10 per cent year-on-year (YoY), beating its estimates by 8 per cent and consensus expectations by 6 per cent. The brokerage noted that EBITDA margins improved during the quarter, aided by lower expenses, which resulted in a profit after tax (PAT) beat of 20 per cent and 9 per cent compared with JM Financial's estimates and Street expectations, respectively.

Meanwhile, REC Ltd reported a standalone net profit of Rs 4,043.08 crore in Q3 FY26, compared with Rs 4,029.09 crore in the corresponding quarter of the previous financial year.

"The Finance Minister's proposal to restructure PFC and REC underscores a strategic pivot in strengthening India's financial institutions backing the power sector. This move aims to address legacy balance-sheet stress, improve capital allocation efficiencies, and elevate the credit profile of these key NBFC lenders. From a sectoral perspective, a well-executed restructuring can unlock capital for fresh lending into transmission, distribution, and renewable projects while reducing systemic risk," said Raj Gaikar, Research Analyst, SAMCO Securities.

In her Budget speech, Sitharaman also announced plans to introduce a market-making framework for the corporate bond market, aimed at improving liquidity and depth. 

Domestic equity benchmarks were trading higher on the day, led by gains in automobile, pharmaceutical, consumer durables and private banking stocks.

Presenting the Budget in the Lok Sabha, the finance minister said the government has raised its capital expenditure outlay to Rs 12.02 lakh crore for FY27 to support its reform agenda.

She also announced the launch of India Semiconductor Mission 2.0, with a focus on industry-led research, development and setting up of training centres for semiconductor manufacturing.

In addition, mineral-rich states, including Odisha, Kerala, Andhra Pradesh and Tamil Nadu, will establish rare earth corridors. An allocation of about Rs 10,000 crore has been earmarked for the biopharma sector.

The Union Budget 2026–27 is Sitharaman's ninth consecutive Budget and the third of the BJP-led NDA government.