REC Q2 results: Net profit declines 21% YoY to ₹3,478 crore; second interim dividend declared

It posted a 21.23% year-on-year (YoY) decline in its consolidated net profit to ₹3,477.73 crore during the quarter under review, compared with ₹4,414.93 crore in the same period last year.

Its interest income stood at ₹14,669.49 crore in Q2 FY27, marking a marginal 0.5% YoY increase from ₹14,589.97 crore in the second quarter of the 2025-26 fiscal year (Q2 FY26), according to a regulatory filing.

Its total revenue from operations dipped % YoY to ₹15,000.40 crore in the quarter from ₹15,152.67 crore in the year-ago quarter.

According to a company statement, high power offtake coupled with REC’s relentless focus on technology-driven credit assessment and customer-centric solutions resulted in strong AUM (assets under management) growth.

Its loan book rose 5% quarter-on-quarter (QoQ) to ₹6.17 lakh crore as of September 30, highlighting that REC remains the largest standalone financier in the power sector, it stated.

With the Ministry of Power’s targeted efforts, the financial health of power utilities continued to improve, reflecting in lower sectoral credit risk premiums.

REC has been adequately passing on these benefits to the sector in line with the market, and has still maintained a healthy net interest margin (NIM) of 3.22% during H1 FY27.

With strong operational and financial performance, REC recorded a profit after tax of ₹7,541 crore during the half year ended September 30, 2026, translating into an annualised earnings per share (EPS) of ₹57.27.

Backed by sustained profitability, the company's capital base further strengthened with net worth surging 14% YoY to ₹94,325 crore.

REC said it continues to maintain pristine asset quality and resolved a Stage III asset of ₹4.16 crore during the quarter, resulting in 0.11% net non-performing assets (NPA) as of September 30, 2026.

Stage-II loan assets also reduced by 80% YoY to ₹3,235 crore as of September 30, 2026, driven by focused recovery efforts and effective monitoring.

The REC continued to expand its presence in strategic growth sectors. The renewable energy portfolio grew 27% to ₹86,660 crore, reflecting the company's commitment to India's clean energy transition.

The portfolio of newly entered non-power infrastructure and logistics sector has 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.

Second interim dividend declared

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.

It fixed Friday, October 30, 2026, as the record date and said that the dividend will be paid on or before November 21, 2026.

Shares of REC Ltd closed 1.45% higher at ₹298.20 per unit on the National Stock Exchange (NSE) on Monday, October 26. However, the results were declared after the market closed.

REC Ltd has a total market capitalisation of ₹78,522.74 crore as of October 26, 2026, according to data on the NSE.