REC Clocks ₹4,149 Cr Profit In Q1 FY27, Up By 23% From Last Quarter

State-owned REC on Saturday reported a 23% sequential rise in standalone net profit to ₹4,149 crore for the quarter ended June 30, 2026, supported by higher net interest income and a stable net interest margin.

Net interest income (NII) rose 5% to ₹5,212 crore in the June quarter from ₹4,961 crore in the preceding quarter, according to the financial results approved by the company's board of directors.

Despite a dynamic operating environment, REC maintained a net interest margin (NIM) of 3.34%, reflecting the strength of its lending portfolio and disciplined financial management, the company said.

The company also reported an annualised earnings per share (EPS) of ₹63.04 for the quarter ended June 30, 2026, highlighting its strong earnings performance.

The Board of Directors approved both the standalone and consolidated financial results for the quarter ended June 30, 2026.

REC's standalone loan book stood at ₹5.90 lakh crore as on June 30, 2026 which is the largest for any CPSU-NBFC in India, demonstrating the strength and stability of its lending operation. Aided by growth in profits, the Net Worth has grown by 15% on Y-o-Y basis to ₹91,836 crore as on June 30, 2026.

The renewable energy portfolio continued to witness robust traction, growing to ₹78,596 crore, constituting 13.32% of the overall loan composition, reinforcing REC's commitment to fostering sustainable infrastructure development and accelerating the growth of green energy in India. The infrastructure and logistic portfolio has grown to ₹59,289 crore, which is over 10% of the overall loan assets.

Driven by sustained initiatives to improve asset quality, the Company has reduced its Stage-3 loan asset to the total loan portfolio ratio to near-zero levels i.e., 0.11%.

Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at comfortable 23.06% as at June 30, 2026 against the regulatory minimum of 15% as mandated by RBI.

In line with its consistent dividend distribution track record and commitment to enhancing shareholder returns, the Board of Directors of the Company has declared the First Interim Dividend of ₹4.25 per equity share (face value ₹10 each).

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