New Delhi, April 28: REC Limited has reported its highest-ever annual net profit of ₹16,282 crore for the financial year ended March 31, 2026, reflecting strong growth and improved asset quality amid a stabilising power sector.
The company also announced its highest total dividend of ₹18.55 per share for FY 2025–26, continuing its trend of rewarding shareholders.
According to the company, India’s power sector is witnessing renewed momentum, with previously loss-making distribution companies turning profitable—creating a more stable financial environment and lowering risk premiums. REC stated that it has passed on these benefits to borrowers by rationalising loan yields.
The lender reported significant improvement in asset quality, with Net Stage-3 assets (NPAs) nearly at zero (0.12%) and Stage-2 loans reduced by 75% year-on-year. The company’s loan book grew by around ₹17,000 crore during the year to reach an all-time high of ₹5.84 lakh crore.
REC’s renewable energy portfolio also saw strong growth, rising 30% to ₹75,347 crore, aligning with the government’s push for sustainable energy.
An official spokesperson said In FY 2025–26, the company recorded a 21 per cent rise in sanctions, which reached ₹4,09,097 crore, while disbursements grew by 10 per cent to ₹2,11,189 crore. Disbursements excluding RBPF registered a sharper increase of 28 per cent.
The net worth expanded by 9 per cent to ₹84,290 crore, with the Capital Adequacy Ratio remaining robust at 23.11 per cent. Earnings per share (EPS) also saw an increase, standing at ₹61.71.
The company maintained healthy margins, with interest spread at 2.62% and Net Interest Margin (NIM) at 3.43%.
According to the spokesperson, REC has also retained its ‘Excellent’ rating in MoU performance for three consecutive years and improved its ranking among profit-making CPSEs, moving from 9th to 5th position as per the Department of Public Enterprises survey.
Reaffirming its growth outlook, the company’s ‘Maharatna’ status was also upheld earlier this year.
REC said sustainability remains central to its strategy, with a strong focus on ESG integration and renewable energy expansion, further reflected in its top ranking in NSE ESG ratings.
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