REC LTD Q1 FY27 profit jumps 23%, declares Rs 4.25 interim dividend per share

The Board of Directors of REC Limited on Friday approved the standalone and consolidated financial results for the quarter ended June 30, 2026. REC reported a net profit of Rs 4,149 crore for Q1 FY27, up 23 per cent from Rs 3,362 crore in Q4 FY26. Net interest income stood at Rs 5,212 crore compared to Rs 4,961 crore in the previous quarter, registering a growth of 5 per cent.

Despite a dynamic operating environment, the company sustained a healthy net interest margin of 3.34 per cent, reflecting the strength of its lending portfolio and disciplined financial management. REC delivered annualised earnings per share of Rs 63.04 for the quarter ended June 30, 2026.

REC’s standalone loan book stood at Rs 5.90 lakh crore as on June 30, 2026, the largest for any CPSU-NBFC in India. Net worth grew 15 per cent year-on-year to Rs 91,836 crore as on June 30, 2026, aided by growth in profits. The renewable energy portfolio continued to witness robust traction and grew to Rs 78,596 crore, constituting 13.32 per cent of the overall loan composition. This reinforces REC’s commitment to fostering sustainable infrastructure development and accelerating the growth of green energy in India. The infrastructure and logistics portfolio grew to Rs 59,289 crore, accounting for over 10 per cent of overall loan assets.

Driven by sustained initiatives to improve asset quality, the company reduced its Stage-3 loan assets to total loan portfolio ratio to 0.11 per cent. The Capital Adequacy Ratio stood at 23.06 per cent as on June 30, 2026, against the regulatory minimum of 15 per cent mandated by RBI, indicating ample opportunity to support future growth.

In line with its consistent dividend distribution track record, the Board of Directors declared the First Interim Dividend of Rs 4.25 per equity share of face value Rs 10 each.

The strengthening fundamentals of the Indian power sector have contributed to improved financial position of power utilities, resulting in stronger credit profiles and, consequently, lower provisioning requirements. Reflecting its customer-centric approach, REC proactively shared these benefits with borrowers by rationalising lending rates, resulting in a yield of 9.55 per cent in Q1 FY 2026-27.

The company was recognised with 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, underscoring its strong business performance, digital innovation, and leadership in leveraging advanced technologies.

REC Limited said it is strategically broadening its business footprint through targeted investments in conventional power, renewable energy and infrastructure & logistics development in the country. The company also continues to be a strategic partner to the Government of India in implementing government programmes, policy and reforms and is steadily fostering long-term growth.