New Delhi, July 24: State-owned power sector financier REC Limited on Friday reported a 23 per cent sequential increase in standalone net profit for the first quarter of FY 2026-27 and announced a first interim dividend of ₹4.25 per equity share.
The company’s Board of Directors approved the standalone and consolidated financial results for the quarter ended June 30, 2026.
REC posted a net profit of ₹4,149 crore during the April-June quarter, up from ₹3,362 crore in the previous quarter. Net Interest Income (NII) also increased by 5 per cent to ₹5,212 crore, compared to ₹4,961 crore in the January-March quarter.
The company maintained a healthy Net Interest Margin (NIM) of 3.34 per cent despite a dynamic operating environment and reported an annualised earnings per share (EPS) of ₹63.04 for the quarter.
REC’s standalone loan book expanded to ₹5.90 lakh crore as of June 30, 2026, making it the largest among Central Public Sector Undertaking (CPSU) non-banking financial companies (NBFCs). The company’s net worth rose 15 per cent year-on-year to ₹91,836 crore.
The renewable energy portfolio grew to ₹78,596 crore, accounting for 13.32 per cent of the overall loan book, while loans to the infrastructure and logistics sector reached ₹59,289 crore, representing over 10 per cent of total loan assets.
The company also reported continued improvement in asset quality, with its Stage-3 loan ratio declining to just 0.11 per cent of the total loan portfolio.
REC’s Capital Adequacy Ratio (CRAR) stood at 23.06 per cent, well above the Reserve Bank of India’s regulatory requirement of 15 per cent, providing sufficient headroom for future business expansion.
In line with its dividend distribution policy, the Board declared a first interim dividend of ₹4.25 per equity share of face value ₹10 each for FY 2026-27.
The company said improving financial health of power utilities has strengthened borrower credit profiles and reduced provisioning requirements. It added that the benefits were partly passed on to borrowers through rationalised lending rates, resulting in a lending yield of 9.55 per cent during the quarter.
REC also highlighted recent recognitions, including the ‘NBFC of the Year’ Award at the 3rd Annual Bharat NBFC & FinTech Summit & Awards 2026 and the ‘AI & GenAI Adoption Excellence Award’ at the 2nd Bharat PSU Manthan & Excellence Awards 2026.
The company said it will continue expanding its presence across conventional power, renewable energy, infrastructure and logistics while supporting key Government of India programmes and reforms.
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