NEW DELHI: State-owned REC Ltd. on Friday reported a 23% sequential rise in standalone net profit for the first quarter of FY2026-27 and declared a first interim dividend of ₹4.25 per equity share, reflecting strong earnings and continued growth in its lending business.
The company’s standalone net profit rose to ₹4,149 crore for the quarter ended June 30, 2026, from ₹3,362 crore in the preceding quarter. Net interest income increased 5% to ₹5,212 crore, compared with ₹4,961 crore in the January-March quarter.
REC said it maintained a healthy net interest margin (NIM) of 3.34%, while annualized earnings per share stood at ₹63.04, supported by disciplined financial management and a resilient lending portfolio.
The company’s standalone loan book expanded to ₹5.90 lakh crore as of June 30, the largest among India’s central public sector undertaking non-banking financial companies (CPSU-NBFCs). Net worth rose 15% year-on-year to ₹91,836 crore.
REC continued to strengthen its clean energy financing portfolio, with renewable energy loans increasing to ₹78,596 crore, accounting for 13.32% of the overall loan book. Its infrastructure and logistics portfolio also grew to ₹59,289 crore, representing more than 10% of total loan assets.
The lender further improved asset quality, reducing its Stage-3 loan ratio to 0.11%, while maintaining a capital adequacy ratio (CRAR) of 23.06%, well above the Reserve Bank of India’s minimum regulatory requirement of 15%.
The Board of Directors declared a first interim dividend of ₹4.25 per equity share of face value ₹10, continuing the company’s track record of rewarding shareholders.
REC said improving financial health across India’s power sector enabled it to rationalize lending rates for borrowers while maintaining a lending yield of 9.55% during the quarter.
The company also 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.
REC said it will continue expanding its investments across conventional power, renewable energy, infrastructure and logistics while supporting the Government of India’s infrastructure and energy development initiatives.
