New Delhi: In a strong reflection of the improving health of India’s power sector, REC Limited has reported its highest-ever annual net profit of ₹16,282 crore for the financial year ended March 31, 2026. The company also announced its highest-ever total dividend of ₹18.55 per share, underlining its consistent commitment to shareholder returns.
The financial performance comes at a time when the Indian power sector is witnessing a structural turnaround, supported by policy reforms and improved financial discipline among distribution companies (DISCOMs).
Power Sector Turnaround Boosts REC’s Growth
REC Limited highlighted that the Indian power sector is entering a phase of renewed vibrance, driven by multiple initiatives of the Government of India. Notably, power distribution companies—historically burdened with losses—have collectively reported net profits, signaling a rare and significant turnaround.
This improved financial environment has led to:
- Enhanced asset quality across the sector
- Reduced risk premiums
- Greater lending confidence
As a responsible lender focused on nation-building, REC has proactively passed on the benefits of reduced risk by rationalising yields on its loan assets, thereby supporting borrowers and strengthening sectoral growth.
Read also: Leadership Updates: Rajesh Kumar Assumes Charge as Director (Finance) of REC Limited
Loan Book Surges to All-Time High
REC’s sustained growth strategy is reflected in its expanding loan portfolio:
- Total Loan Book: ₹5.84 lakh crore (all-time high as of March 31, 2026)
- Annual Growth: Approx. ₹17,000 crore increase
The company maintained strong asset quality while expanding its lending footprint, demonstrating a balanced approach between growth and risk management.
Asset Quality Improves Significantly
One of the standout achievements of FY26 is REC’s remarkable improvement in asset quality:
- Net Stage-3 Loans (NPAs): Nearly zero at 0.12%
- Stage-2 Loans: Reduced by 75% year-on-year
This sharp decline in stressed assets indicates robust credit monitoring and prudent lending practices.
Strong Push Towards Renewable Energy Financing
Aligned with India’s sustainability goals, REC Limited has significantly expanded its renewable energy portfolio:
- Renewable Loan Book: ₹75,347 crore
- Growth: 30% year-on-year
This growth reflects REC’s commitment to financing clean energy projects and supporting India’s transition toward a greener economy.
Key Financial Highlights for FY 2025–26
REC delivered strong operational and financial performance across multiple indicators:
- Sanctions: ₹4,09,097 crore (up 21%)
- Disbursements: ₹2,11,189 crore (up 10%)
- Disbursements (excluding RBPF): ₹1,46,227 crore (up 28%)
- Net Worth: ₹84,290 crore (up 9%)
- Capital Adequacy Ratio (CRAR): 23.11%
- Interest Spread: 2.62%
- Net Interest Margin (NIM): 3.43%
- Earnings Per Share (EPS): ₹61.71
These figures highlight strong financial fundamentals and capacity for future expansion.
Highest-Ever Dividend Rewards Shareholders
Continuing its strong dividend track record, the Board of REC Limited declared a final dividend of ₹1.55 per equity share, taking the total dividend for FY26 to ₹18.55 per share, the highest in its history.
Consistent Performance and Maharatna Status Reaffirmed
REC has maintained a consistent track record of excellence:
- Achieved ‘Excellent’ MoU rating for three consecutive years (FY23–FY25)
- Improved ranking from 9th to 5th among profit-making CPSEs
- Maharatna status reaffirmed in January 2026
These achievements reinforce its position among India’s leading public sector enterprises.
ESG Leadership and Sustainability Focus
Sustainability remains central to REC’s operations, with strong integration of Environmental, Social, and Governance (ESG) principles.
The company also achieved top ranking in NSE ESG Ratings, reflecting its leadership in sustainable financing practices.
Outlook: Positioned for Future Growth
With strong profitability, improving asset quality, and expanding renewable exposure, REC Limited is well-positioned to support India’s growing power and infrastructure needs.
Its robust capital adequacy provides significant room for future lending as India accelerates its transition toward energy security and sustainable growth.
About REC Limited
REC Limited is a Maharatna PSU and a key financial institution in India’s power sector. It provides financing and development support for power generation, transmission, and renewable energy projects, playing a crucial role in strengthening the country’s energy infrastructure and green transition goals.
Read also: REC Limited Wins “ESG and Responsible Business Award” at Net Green Foundation Earth Awards 2026
