REC Q1 net profit soars 23% to Rs 4,149 crore, declares dividend

REC Limited reports a strong Q1 FY27 with a 23% sequential jump in net profit to Rs 4,149 crore. The state-owned NBFC announced a Rs 4.25/share interim dividend, saw NII rise 5%, and reduced its Stage-3 loan assets to a near-zero 0.11%.

State-owned non-banking finance company REC Limited on Friday reported a 23 per cent sequential rise in net profit to Rs 4,149 crore for the quarter ended June 30, 2026, and announced 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 said its Board of Directors approved the standalone and consolidated financial results for the first quarter of FY27. According to the company, net interest income (NII) increased 5 per cent to Rs 5,212 crore from Rs 4,961 crore in the previous quarter, while net profit rose to Rs 4,149 crore from Rs 3,362 crore.

Key Performance Highlights

"Despite a dynamic operating environment, REC sustained a healthy NIM of 3.34%, reflecting the strength of its lending portfolio and disciplined financial management," the company said, adding that it delivered an annualised earnings per share (EPS) of Rs 63.04 for the quarter.

REC said its standalone loan book stood at Rs 5.90 lakh crore as on June 30, 2026, making it "the largest for any CPSU-NBFC in India." The company's net worth grew 15 per cent year-on-year to Rs 91,836 crore. The renewable energy portfolio expanded to Rs 78,596 crore, accounting for 13.32 per cent of the overall loan book, while the infrastructure and logistics portfolio grew to Rs 59,289 crore, representing over 10 per cent of total loan assets.

Strong Asset Quality and Capital Position

Highlighting improvement in asset quality, the company said it had reduced its Stage-3 loan asset ratio to "near-zero levels, i.e., 0.11%." It also reported a Capital Adequacy Ratio (CRAR) of 23.06 per cent, well above the Reserve Bank of India's regulatory minimum requirement of 15 per cent.

The company attributed lower provisioning requirements to improving financial health across the 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," REC said.

It added that, "Reflecting its customer-centric approach, REC proactively shared these benefits with borrowers by rationalising lending rates, resulting in a yield of 9.55% in Q1-FY 2026-27."

Awards and Strategic Diversification

REC also highlighted recent recognitions, saying it 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.

The company said it is continuing to diversify beyond conventional power financing through investments in renewable energy, infrastructure and logistics, while supporting various government programmes, policy initiatives and reforms aimed at long-term economic growth. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)