REC Clocks ₹4,149 Cr Profit in Q1 FY27, Declares 1st Interim Dividend of ₹4.25 per Share
Delhi, July 24, 2026: REC Limited has reported a strong financial performance for the first quarter of financial year 2026-27, with standalone net profit rising 23% quarter-on-quarter to ₹4,149 crore from ₹3,362 crore in Q4 FY26. The Board of Directors of the company approved the standalone and consolidated financial results for the quarter ended June 30, 2026.
The company also declared its first interim dividend of ₹4.25 per equity share of face value ₹10 each for FY 2026-27, in line with its consistent track record of dividend distribution and its commitment to enhancing shareholder returns.
REC’s net interest income increased to ₹5,212 crore in Q1 FY27 from ₹4,961 crore in the preceding quarter, registering a growth of 5%. Despite a dynamic operating environment, the company maintained a healthy Net Interest Margin (NIM) of 3.34%, reflecting the strength of its lending portfolio and disciplined financial management.
The company delivered an annualised earnings per share (EPS) of ₹63.04 for the quarter ended June 30, 2026, underscoring the strength of its earnings performance.
REC’s standalone loan book stood at ₹5.90 lakh crore as on June 30, 2026, making it the largest among Central Public Sector Undertaking-NBFCs in India. The size and composition of the loan book highlight the strength and stability of the company’s lending operations and its important role in financing the country’s power and infrastructure sectors.
Aided by the growth in profitability, REC’s net worth increased 15% year-on-year to ₹91,836 crore as on June 30, 2026.
The company’s renewable energy portfolio continued to witness strong growth and reached ₹78,596 crore, accounting for 13.32% of its overall loan composition. The expansion reflects REC’s increasing focus on sustainable infrastructure development and its role in supporting the growth of green energy in India.
At the same time, REC’s infrastructure and logistics portfolio grew to ₹59,289 crore, accounting for more than 10% of its overall loan assets. The company has also made significant progress in improving asset quality. Through sustained initiatives, it reduced the ratio of Stage-3 loan assets to the total loan portfolio to near-zero levels of 0.11%.
REC’s strong capital position provides significant headroom to support future growth. Its Capital Adequacy Ratio (CRAR) stood at a comfortable 23.06% as on June 30, 2026, well above the regulatory minimum of 15% mandated by the Reserve Bank of India.
The strengthening fundamentals of the Indian power sector have improved the financial position of power utilities, leading to stronger overall credit profiles and lower provisioning requirements. Reflecting its customer-centric approach, REC proactively passed on these benefits to borrowers by rationalising lending rates. Consequently, the company’s yield stood at 9.55% during Q1 FY27.
During the quarter, REC also received recognition for its business performance and digital transformation initiatives. The company was honoured with the ‘NBFC of the Year’ Award at the 3rd Annual Bharat NBFC & FinTech Summit & Awards 2026. It also received the ‘AI & GenAI Adoption Excellence Award’ at the 2nd Bharat PSU Manthan & Excellence Awards 2026.
REC Limited is steadily broadening its business footprint through targeted investments in conventional power, renewable energy, and infrastructure and logistics development. In addition, the company continues to serve as a strategic partner to the Government of India in implementing key government programmes, policies and reforms, while strengthening its long-term growth prospects.
Indian Bureaucracy News Desk wishes them the very best.