REC | Record Profit of ₹16,282 Cr, Declares Highest-Ever Dividend of ₹18.55 Per Share
While approving the annual standalone and consolidated financial results for the year ended March 31, 2026, REC Limited states that the Indian power sector is at the cusp of new vibrance owing to numerous initiatives taken by Government of India. The legacy loss-making power distribution companies achieved a rare, collective overall net profit, marking a significant turnaround. This improvement led to a stable environment, indicating improved quality of assets, resulting to reduction in risk premiums. REC, as a responsible lender focused towards nation building, has proactively passed on such reduced risk premium to its borrowers by rationalising its yield on loan assets.
The continued focus on sustainable growth is showing results with the Net Stage-3 loans (NPA) nearly “Zero” (0.12%) and Stage-2 loans reduced by 75% YoY. Without compromising on the asset quality, REC has registered a growth in loan book of around ₹ 17,000 crores during the last year. As a result, the loan book is at an all-time high of ₹5.84 lakh crore as on March 31, 2026. In conjunction with government vision, the Renewable loan book increased to ₹75,347 crore as on March 31, 2026, reflecting 30% growth.
Inspite of challenging macro economic situations and geopolitical uncertainity, REC has registered its highest ever annual net Profit of ₹16,282 crore during financial year ended 31st March 2026.
Key Operational and Financial Highlights for the year 2025-26
- Sanctions: ₹4,09,097 crore v/s ₹3,37,179 crore, up by 21%
- Disbursement: ₹2,11,189 crore v/s ₹1,91,185 crore, up by 10%
- Disbursements (excluding RBPF): ₹1,46,227 crore v/s ₹1,13,897 crore, up by 28%
- Net Worth: ₹84,290 crore as on March 31, 2026 v/s ₹77,638 crore as on March 31, 2025, up by 9%.
- Capital Adequacy Ratio (CRAR): 23.11% as at March 31, 2026, Indicating ample opportunity to support future growth
The interest spread and NIM remains healthy at 2.62% and 3.43% respectively. The strong profitability has resulted in Earnings Per Share (EPS) increasing to ₹61.71 per share, for the year ended March 31, 2026.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the final dividend of ₹1.55 per equity share (on face value of ₹10/- each) with this total dividend for the financial year 2025-26 is ₹18.55 per share.
REC has demonstrated consistent excellence in MoU performance, achieving an ‘Excellent’ rating for three consecutive years (FY 23, FY 24 and FY 25). Further, REC moved up four places from 9th to 5th in the ranking of net profit‑making CPSEs, as per DPE’s PE Survey Report for FY’25. Based on its consistent business, operational, and financial performance and a positive future growth outlook, REC’s ‘Maharatna’ status was reaffirmed by the DPE after the review undertaken in Jan’26.
REC Limited (formerly Rural Electrification Corporation Limited) is a leading public sector company in India’s power financing sector. Established in 1969, it operates under the administrative control of the Ministry of Power and plays a crucial role in strengthening the country’s power infrastructure. Headquartered in New Delhi, REC has evolved from a rural electrification-focused lender into a diversified infrastructure financing institution.
The primary objective of REC Limited is to provide financial assistance for the generation, transmission, and distribution of electricity across India. Over the years, it has significantly contributed to major government initiatives aimed at expanding electricity access, including rural electrification programs that have helped bring power to millions of households. Its efforts have been instrumental in supporting flagship schemes such as village electrification and strengthening last-mile connectivity.
REC offers a wide range of financial products, including project financing, loan refinancing, and equity support for power sector projects. It caters to state electricity boards, central and state power utilities, and private sector developers. In recent years, REC has also diversified into non-power infrastructure sectors such as roads, metro rail, airports, and renewable energy, aligning with India’s broader infrastructure development goals.
Financially, REC has demonstrated strong and consistent performance. It has reported record profits in recent years, reflecting its robust asset quality and efficient lending practices. The company’s ability to maintain a healthy loan book while ensuring low levels of non-performing assets has strengthened investor confidence. Its consistent dividend payouts make it an attractive option for shareholders, underscoring its commitment to delivering value.
REC is also a key player in promoting renewable energy in India. It finances solar, wind, and other green energy projects, supporting the country’s transition toward sustainable energy. This aligns with India’s commitments under global climate agreements and its ambitious renewable energy targets. By funding clean energy initiatives, REC contributes not only to economic growth but also to environmental sustainability.
The company’s operational efficiency is supported by its strong governance framework and risk management practices. As a listed entity on major stock exchanges, including the National Stock Exchange of India and the Bombay Stock Exchange, REC adheres to high standards of transparency and accountability. Its credit ratings from leading agencies further reflect its financial stability and credibility in the market.
In conclusion, REC Limited plays a vital role in India’s energy and infrastructure landscape. From powering rural development to financing large-scale infrastructure projects, the company continues to be a key enabler of economic growth. With its expanding portfolio, strong financial performance, and focus on sustainability, REC is well-positioned to support India’s future development needs while delivering long-term value to its stakeholders.
Sustainability is at the core of REC. Building on this legacy, REC has integrated ESG into every facet of its operations with core focus on renewable portfolio growth. This ESG excellence is reflected in the NSE ESG Ratings, where REC achieved the highest rating among all companies rated in the country.