REC share price declines 3% after board approves ₹1.7 lakh crore borrowing for FY26; check details

The company will raise through domestic bonds, capital gain tax-exempted bonds rupee term loans, and other instruments in the next financial year.

The borrowing plan includes raising ₹1.55 lakh crore from domestic bonds, capital gain tax-exempted bonds, rupee term loans from financial institutions and banks, as well as external commercial borrowing, the state-owned firm said in a stock regulatory filing.

According to the filing, the company will raise ₹10,000 crore through short-term loans and ₹5,000 crore through commercial papers.

Following this, shares of REC declined 2.91% to ₹426.35 apiece on the National Stock Exchange.

The company’s board also approved the appointment of Parminder Chopra, CMD - Power Finance Corporation Ltd, as Additional Director on the Board of REC in the capacity of CMD (additional charge) from March 21, 2025.

Meanwhile, REC on Tuesday had said its subsidiary, RECPDCL, has handed over four project-specific special purpose vehicles (SPVs) – three to Power Grid Corporation of India Ltd and one to IndiGrid 2 Private Ltd. The transmission asset, namely Ratle Kiru Power Transmission Ltd, has been handed over to IndiGrid 2 Private Ltd, REC said in a statement.

REC had posted a 23% rise in consolidated net profit to ₹4,076.35 crore in the December quarter, aided by higher income. It had posted a net profit of ₹3,308.42 crore in the October-December period of the 2023-24 financial year.

Total income rose to ₹14,286.91 crore in the reporting quarter from ₹12,071.54 crore in the year-ago period, while total expenses stood at ₹9,105.94 crore in Q3FY25 as against ₹7,899.85 crore a year earlier.

REC, under the Ministry of Power, is a non-banking finance company (NBFC), public financial institution (PFI), and infrastructure financing company (IFC).