New Delhi: REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has announced its unaudited standalone financial results for the quarter ended June 30, 2026 (Q1 FY27).
The company reported a standalone net profit of ₹4,149.46 crore during the quarter. On a consolidated basis, REC Limited recorded a net profit of ₹4,192.76 crore.
The company maintained strong asset quality, robust capital adequacy, and continued support for India’s power, infrastructure, and logistics sectors.
Key Financial Highlights of REC Limited Q1 FY27
Standalone Performance (₹ in Crore)
- Total Income: ₹14,331.40 crore, compared with ₹14,733.81 crore in Q1 FY26, registering a 2.73% decline year-on-year.
- Interest Income: ₹14,186.73 crore, compared with ₹14,581.37 crore in the same period last year, showing a 2.71% YoY decrease.
- Finance Costs: ₹8,748.42 crore, down from ₹8,935.10 crore in Q1 FY26, marking a 2.09% decline.
- Net Profit: ₹4,149.46 crore, compared with ₹4,451.02 crore in Q1 FY26, reflecting a 6.77% year-on-year decline.
- Basic Earnings Per Share (EPS): ₹15.76, compared with ₹16.90 in the previous year, showing a 6.75% decrease.
Despite a marginal decline in profit compared with the previous year, REC maintained strong financial stability and continued operational performance.
Consolidated Financial Performance
REC Limited reported the following consolidated results for Q1 FY27:
- Total Income: ₹14,469.49 crore
- Net Profit: ₹4,192.76 crore
- Basic EPS: ₹15.92
- Total Comprehensive Income: ₹7,439.95 crore
The consolidated performance reflects the company’s continued strength in financing power and infrastructure development projects.
REC Maintains Strong Asset Quality and Capital Position
REC continued to demonstrate improvement in asset quality and maintained a healthy financial position during the quarter.
Key Asset Quality Indicators:
- Capital to Risk-Weighted Assets Ratio (CRAR): 23.06%
- Gross Credit Impaired Assets Ratio: 0.23%
- Net Credit Impaired Assets Ratio: 0.11%
- Provisioning Coverage Ratio (Stage 3 Assets): 51.17%
- Debt-Equity Ratio: 5.52x
- Net Worth: ₹91,836 crore
The company’s loan assets stood at ₹5,89,999.94 crore, with an impairment allowance of ₹5,763.94 crore.
REC also maintained a strong security position with:
- 1.69 times security cover for secured non-convertible debt securities
- 1.40 times security cover for listed securities
These covers remain sufficient to meet principal and interest obligations.
REC Board Declares ₹4.25 Interim Dividend for FY27
The Board of Directors of REC Limited has approved the declaration of the first interim dividend of ₹4.25 per equity share for financial year 2026-27.
Dividend Details:
- Dividend Amount: ₹4.25 per share (Face Value ₹10)
- Record Date: July 31, 2026
- Payment Date: On or before August 23, 2026
The company has also fixed August 14, 2026 as the record date for the final dividend of ₹1.55 per share for FY 2025-26, subject to shareholder approval at the Annual General Meeting (AGM).
REC Approves Key Board Appointments
The REC Board has approved important appointments as part of strengthening corporate governance.
New Appointments:
- Poonam Chauhan appointed as Part-time Non-Official (Independent) Director, effective July 21, 2026.
- Mukul Agarwal appointed as Internal Auditor, effective August 1, 2026.
REC-PFC Merger Process Moves Forward
REC Limited’s proposed merger with Power Finance Corporation Limited (PFC) continues to progress.
The REC Board had approved the Draft Scheme of Merger by Absorption with PFC on June 28, 2026.
Key Details of the Merger:
- Share Exchange Ratio: 88 equity shares of PFC for every 100 shares of REC
- Appointed Date: April 1, 2027
- Status: Subject to regulatory approvals and shareholder approvals
The merger is expected to strengthen the financial and operational capabilities of both power sector financing institutions.
Other Important Disclosures by REC Limited
REC reported several key compliance and operational updates for the quarter:
- No default in repayment of debt securities, borrowings, or subordinated liabilities.
- No loans were transferred or acquired during the quarter.
- Full utilization of proceeds from non-convertible securities worth ₹12,495 crore raised in June 2026.
- No redeemable preference shares were issued during the period.
Management Highlights Strong Financial Foundation
REC Limited stated that the company continues to maintain strong asset quality and robust capital adequacy while supporting India’s power, logistics, and infrastructure sectors.
The interim dividend declaration reflects REC’s continued focus on delivering value to shareholders while maintaining financial discipline.
The company’s stable quarterly performance, improving asset quality, and strong dividend payout are expected to support positive investor sentiment.
About REC Limited
REC Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India. Established in 1969, REC provides financial assistance to power sector companies, state electricity boards, and infrastructure projects across India. The company plays a key role in supporting electricity generation, transmission, distribution, and national power sector development.
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