New Delhi — REC Limited, a Maharatna public sector enterprise under the Ministry of Power, has posted its highest-ever quarterly net profit of ₹4,451 crore for the quarter ended June 30, 2025 (Q1 FY26), representing a 29% year-on-year growth compared to ₹3,442 crore in Q1 FY25.
The Board of Directors approved the company’s standalone and consolidated financial results at its meeting today.
Key Financial and Operational Highlights (Q1 FY26 vs Q1 FY25)
- Net Profit: ₹4,451 crore vs. ₹3,442 crore — up 29%
- Total Income: ₹14,734 crore vs. ₹13,037 crore — up 13%
- Net Interest Income: ₹5,247 crore vs. ₹4,474 crore — up 17%
- Disbursements: ₹59,508 crore vs. ₹43,652 crore — up 36%
- Includes 35% growth in disbursements to the renewable energy sector
- Return on Net Worth (RoNW): 22.63% vs. 19.51% — up 312 basis points
- Net Interest Margin (NIM): 3.74%
- Spreads Maintained: 2.96%
- EPS (Annualised): ₹67.60 vs. ₹52.28 — up 29%
Strong Loan Growth & Improved Asset Quality
REC’s loan book grew to ₹5.85 lakh crore, compared to ₹5.30 lakh crore a year earlier. The company also reported a sharp improvement in asset quality, with net credit-impaired assets declining to just 0.24%, down from 0.82% in the previous year. The Provision Coverage Ratio stood at 77.05%, reflecting prudent risk management.
Dividend Declaration
In recognition of its strong financial performance and in line with its shareholder-centric approach, REC’s Board declared an interim dividend of ₹4.60 per equity share (on a face value of ₹10 each).
Strategic Focus and Outlook
REC attributed the robust growth to consistent performance across lending verticals, particularly the renewable energy sector, and disciplined financial management. With healthy margins and sustained profitability, the company continues to play a key role in funding India’s energy and infrastructure development goals.
Read Also: REC Limited Sets Up 2 New Subsidiaries to Power Maharashtra’s Transmission Grid – Details Inside
About REC Limited
REC Limited is a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Power, Government of India. Established in 1969, REC is a leading non-banking financial company (NBFC) that finances power generation, transmission, distribution, and infrastructure projects. It is a key partner in India’s transition to a sustainable energy future, with an increasing focus on green energy financing.
REC is listed on the BSE and NSE and is known for its strong balance sheet, high profitability, and minimal non-performing assets. The company’s expanding portfolio now includes sectors such as roads, ports, IT infrastructure, and urban development.
