State‑run finance company REC Ltd reported its earnings for the July‑September quarter of the 2026‑27 financial year (Q2 FY27) on Monday, 26 October 2026. The consolidated net profit for the quarter declined 21.23% year‑on‑year to ₹3,477.73 crore, compared with ₹4,414.93 crore in the same period last year. Interest income rose marginally 0.5% YoY to ₹14,669.49 crore from ₹14,589.97 crore in Q2 FY26, while total revenue from operations dipped to ₹15,000.40 crore from ₹15,152.67 crore year‑ago. The company highlighted that high power offtake and technology‑driven credit assessment contributed to strong assets under management growth.

REC’s loan book increased 5% quarter‑on‑quarter to ₹6.17 lakh crore as of 30 September, reaffirming its position as the largest standalone financier in the power sector. The Ministry of Power’s targeted efforts helped improve the financial health of power utilities, reflected in lower sectoral credit risk premiums. REC maintained a healthy net interest margin of 3.22% during H1 FY27 and recorded a profit after tax of ₹7,541 crore for the half‑year, translating into an annualised earnings per share of ₹57.27.

The company’s capital base strengthened further, with net worth surging 14% YoY to ₹94,325 crore. Asset quality remained pristine, with a Stage III asset of ₹4.16 crore resolved during the quarter, resulting in 0.11% net non‑performing assets as of 30 September 2026. Stage‑II loan assets reduced by 80% YoY to ₹3,235 crore, driven by focused recovery efforts and effective monitoring. REC continued to expand its presence in strategic growth sectors.

The renewable energy portfolio grew 27% to ₹86,660 crore, reflecting REC’s commitment to India’s clean energy transition. The portfolio of newly entered non‑power infrastructure and logistics sector increased to ₹61,637 crore, representing over 10% of the overall loan assets, underscoring REC’s position as a one‑stop solution for all financing needs across the infrastructure sector universe.

REC’s board of directors declared the company’s second interim dividend of ₹3.50 per equity share, with a face value of ₹10 each for FY27. The record date was fixed for Friday, 30 October 2026, and the dividend will be paid on or before 21 November 2026. Shares of REC Ltd closed 1.45% higher at ₹298.20 per unit on the National Stock Exchange on Monday, 26 October, with a total market capitalisation of ₹78,522.74 crore as of that date. (Source: PTI)