REC Limited has reported a 23% quarter-on-quarter increase in standalone net profit for the first quarter of FY2026-27 and announced a first interim dividend of ₹4.25 per equity share. The company’s Board of Directors approved the standalone and consolidated financial results for the quarter ended June 30, 2026.
REC’s net profit increased to ₹4,149 crore in Q1 FY27 from ₹3,362 crore in the preceding quarter, while net interest income (NII) rose 5% to ₹5,212 crore, compared with ₹4,961 crore in Q4 FY26. The company maintained a net interest margin (NIM) of 3.34% and reported an annualised earnings per share (EPS) of ₹63.04 for the quarter.
The state-owned non-banking financial company (NBFC) said its standalone loan book reached ₹5.90 lakh crore as of June 30, 2026, making it the largest among India’s CPSU-NBFCs. The company’s net worth grew 15% year-on-year to ₹91,836 crore, supported by higher profitability.
REC also continued to expand its clean energy financing portfolio, with its renewable energy loan book growing to ₹78,596 crore, accounting for 13.32% of its overall loan portfolio. Meanwhile, its infrastructure and logistics portfolio increased to ₹59,289 crore, representing more than 10% of total loan assets.
The company further strengthened its asset quality during the quarter, reducing its Stage-3 loan asset ratio to 0.11%. Its Capital Adequacy Ratio (CRAR) stood at 23.06%, significantly above the Reserve Bank of India’s regulatory minimum requirement of 15%, providing headroom for future lending growth.
Reflecting improved financial health across India’s power sector, REC said stronger credit profiles of power utilities reduced provisioning requirements, enabling the company to rationalise lending rates for borrowers while maintaining a lending yield of 9.55% during Q1 FY27.
During the quarter, REC received 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 for its business performance and digital innovation initiatives.
The company said it will continue expanding its investments across conventional power, renewable energy, infrastructure and logistics while supporting the Government of India’s power sector programmes, reforms and long-term infrastructure development initiatives.
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