REC Limited Reports Record FY26 Profit, Expands Renewable Energy Loan Book by 30% to ₹75,347 Crore

REC Limited has reported its highest-ever annual profit for the financial year ended March 31, 2026, with standalone net profit rising to ₹16,282 crore, reflecting strong growth in lending operations and improved asset quality. The financial results were approved by the company’s Board of Directors during its meeting held on April 28, 2026.

The company’s total income for FY26 stood at ₹59,187 crore, up from ₹55,980 crore in the previous financial year, supported by higher interest income and increased operational revenue. Profit before tax rose to ₹20,713 crore compared to ₹19,860 crore in FY25, while earnings per share increased to ₹61.71 from ₹59.55 in the previous year.

REC’s loan book reached an all-time high of ₹5.84 lakh crore as of March 31, 2026, marking an increase of around ₹17,000 crore year-on-year. The company also reported strong momentum in its renewable energy financing portfolio, with renewable loans rising 30% to ₹75,347 crore, aligning with India’s energy transition objectives.

The company’s asset quality continued to improve significantly, with net Stage-3 loans declining to 0.12%, while Stage-2 loans dropped by 75% year-on-year. REC attributed the improvement to better financial health among power distribution companies and enhanced risk management practices.

Operationally, REC sanctioned loans worth ₹4.09 lakh crore during FY26, a 21% increase from the previous year, while total disbursements rose 10% to ₹2.11 lakh crore. Excluding the Revamped Distribution Sector Scheme-linked funding, disbursements increased 28% to ₹1.46 lakh crore.

The Board has recommended a final dividend of ₹1.55 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting. This is in addition to ₹17 per share already paid as interim dividends during the year, taking the total dividend payout for FY26 to ₹18.55 per share — the highest in the company’s history.

REC stated that its capital adequacy ratio stood at 23.11% at the end of FY26, indicating a strong capital base to support future growth and continued lending to the power and infrastructure sectors.