New Delhi, October 26, 2026: State-owned REC Ltd on Monday reported a 21 per cent decline in its consolidated net profit to Rs 3,477.73 crore for the September quarter, mainly due to subdued total revenue from operations.
Its consolidated net profit was Rs 4,414.93 crore a year ago, an exchange filing showed.
Total revenue from operations dipped to Rs 15,000.40 crore in the quarter from Rs 15,152.67 crore in the year-ago quarter.
The board also approved the second interim dividend for 2026-27 at the rate of Rs 3.50 per equity share of Rs 10 each. The record date for eligible shareholders for the second interim dividend is October 30. The dividend will be paid on or before November 21, 2026.
Loan Book Rises 5 Per Cent Sequentially
According to a company statement, high power offtake, coupled with REC’s relentless focus on technology-driven credit assessment and customer-centric solutions, resulted in strong growth in assets under management (AUM).
Its loan book rose 5 per cent sequentially to Rs 6.17 lakh crore as of September 30, highlighting that REC remains the largest standalone financier in the power sector, it stated.
With the Ministry of Power’s targeted efforts, the financial health of power utilities continued to improve, reflected in lower sectoral credit risk premiums.
REC has been adequately passing on these benefits to the sector in line with the market, and has still maintained a healthy net interest margin (NIM) of 3.22 per cent during H1 FY27.
Half-Year Profit Stands At Rs 7,541 Crore
With strong operational and financial performance, REC recorded a profit after tax of Rs 7,541 crore during the half year ended September 30, 2026, translating into an annualised earnings per share (EPS) of Rs 57.27.
Backed by sustained profitability, the company's capital base further strengthened, with net worth surging 14 per cent year-on-year to Rs 94,325 crore.
Asset Quality Remains Strong
REC said it continues to maintain pristine asset quality and resolved a Stage III asset of Rs 4.16 crore during the quarter, resulting in a net non-performing asset (NPA) ratio of 0.11 per cent as of September 30, 2026.
Stage II loan assets also reduced by 80 per cent year-on-year to Rs 3,235 crore as of September 30, 2026, driven by focused recovery efforts and effective monitoring.
Renewable Energy Portfolio Grows 27 Per Cent
REC continued to expand its presence in strategic growth sectors. The renewable energy portfolio grew 27 per cent to Rs 86,660 crore, reflecting the company's commitment to India's clean energy transition.
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The portfolio in the newly entered non-power infrastructure and logistics sector has increased to Rs 61,637 crore, representing over 10 per cent of the overall loan assets and underscoring REC's position as a one-stop solution for financing needs across the infrastructure sector.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
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