State-owned non-banking finance company REC Limited reported a 23 percent sequential increase in standalone net profit for the quarter ended June 30, 2026, while announcing a first interim dividend of Rs 4.25 per equity share.
According to a press release submitted to the National Stock Exchange (NSE), the company’s Board of Directors approved the standalone and consolidated financial results for the first quarter of FY27.
Net Interest Income and Profit Increase
REC reported a 5 percent rise in net interest income (NII) to Rs 5,212 crore, compared with Rs 4,961 crore in the previous quarter.
Net profit increased to Rs 4,149 crore from Rs 3,362 crore in the January-March quarter. The company said it maintained a Net Interest Margin (NIM) of 3.34 percent, reflecting the strength of its lending portfolio and disciplined financial management. REC also reported an annualised earnings per share (EPS) of Rs 63.04 for the quarter.
Loan Book and Net Worth Expand
As of June 30, 2026, REC’s standalone loan book stood at Rs 5.90 lakh crore, which the company said is the largest among Central Public Sector Undertaking (CPSU) NBFCs in India. The company’s net worth increased 15 percent year-on-year to Rs 91,836 crore.
Renewable Energy and Infrastructure Lending Grow
REC continued to diversify its lending portfolio beyond conventional power financing. Its renewable energy portfolio expanded to Rs 78,596 crore, accounting for 13.32 percent of the total loan book. Meanwhile, the infrastructure and logistics portfolio grew to Rs 59,289 crore, representing more than 10 percent of the company’s total loan assets.
Asset Quality Improves
The company reported further improvement in asset quality during the quarter. REC said its Stage-3 loan asset ratio declined to 0.11 percent, which it described as being at “near-zero levels.” The company also reported a Capital Adequacy Ratio (CRAR) of 23.06 percent, comfortably above the Reserve Bank of India’s minimum regulatory requirement of 15 percent.
Stronger Power Sector Reduces Provisioning
REC attributed lower provisioning requirements to improving financial health across India’s power sector. “The strengthening fundamentals of the Indian power sector have contributed to the improved financial position of power utilities, resulting in stronger overall credit profiles and consequently lower provisioning requirements,” the company said.
It added that it passed on some of these benefits to borrowers by rationalising lending rates, resulting in a yield of 9.55 percent during the first quarter of FY27.
Awards and Diversification Strategy
During the quarter, REC received the “NBFC of the Year” award at the 3rd Annual Bharat NBFC & FinTech Summit & Awards 2026. The company also won the “AI & GenAI Adoption Excellence Award” at the 2nd Bharat PSU Manthan & Excellence Awards 2026.
REC said it will continue expanding beyond traditional power financing through investments in renewable energy, infrastructure and logistics, while supporting government programmes, policy initiatives and reforms aimed at promoting long-term economic growth.
