Established in: 1969
Managing director: Jitendra Srivastava
The Rural Electrification Corporation (REC) Limited is a public-sector NBFC company involved in financing India’s power and infrastructure projects.
REC Limited supports the electricity value chain from power generation, transmission, distribution and renewable energy.
REC Limited operates under the Ministry of Power and has been given the status of a Maharatna company. REC is known for its stable earnings, better asset quality and dividends. REC share is often tracked by investors looking for long-term value in the power finance stocks.
History of REC Limited
REC Limited was established in 1969 to fund the rural electrification projects across India. In 1992, the company was declared a public financial institution under the Companies Act.
Over the years, REC’s role expanded from rural power supply to financing large-scale power generation projects, transmission network and distribution reforms.
Today, REC is a major financier of renewable energy and infrastructure, fulfilling the country’s energy needs.
REC Limited Business Segments
The REC Limited business is divided into five segments:
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Financing Power Generation: The company provides loans for thermal, hydro, nuclear and renewable energy projects across the country.
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Transmission and Distribution: In this segment, the company provides funding for the transmission and distribution lines, smart grids etc.
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Renewable Energy: REC Limited finances the solar, wind, biomass and green energy transition projects.
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Infrastructure and Logistics: The company also funds the construction of roads, metros, railways, ports and infrastructure projects.
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State Government and PSU Lending: The company also provides long-term funding to state utilities, power PSUs, and government-backed enterprises.
Power Finance Corporation and REC Limited Merger
In 2019, Power Finance Corporation acquired the 52.63% stake in REC Limited, making it a subsidiary company.
In 2026, REC is expected to merge into PFC, where PFC would issue new shares to REC shareholders.
In February 2026, the PFC board give principle approval for the merger of the NBFC company REC Limited. Post-merger, PFC will continue to remain a government company.
In Budget 2026, FM Nirmala Sitaraman said, “The vision for NBFCs for Viksit Bharat has been outlined with clear targets for disbursement and technology adoption”.
In order to achieve scale and improve efficiency, it is proposed to restructure the PFC and REC Limited.
REC Limited Business Operations
REC provides financial support to state electricity boards, state government departments and rural electric cooperatives for electrification projects. The corporation offers loan assistance to SEBs/State Power Utilities to facilitate investments in schemes dedicated to rural electrification.
REC is a major player in the government's primary power sector schemes. It has served as the nodal agency for programmes like Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY) and National Electricity Fund (NEF) Scheme. These schemes and REC's contributions significantly improved the last-mile distribution system, achieved 100% village electrification and ensured household electrification across the country. REC Ltd has also been entrusted as the nodal agency for specific states under the Revamped Distribution Sector Scheme (RDSS).
REC Ltd has expanded into the non-power infrastructure domain, including roads and expressways, metro rail, airports, IT communication, social and commercial infrastructure (such as educational institutions and hospitals), ports and electro-mechanical (E&M) works. This expansion caters to various sectors including steel and refinery.
The Ministry of Power has granted REC permission to extend loans to the non-power infrastructure and logistics sector. Within the first year alone, REC approved more than ₹85,700 crore for various projects. These initiatives include metro systems, ports, airports, oil refineries, highways, steel infrastructure, healthcare, educational institutions, as well as sectors like IT infrastructure and fibre optics.
REC operates across the country with 22 state offices to ensure efficient service delivery nationwide. REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC, offers a variety of enhanced consultancy services within the power sector. RECPDCL is also involved in delivering efficient and cost-effective services across various segments of the power sector, including
project implementation and consultancy services.
REC Power Development and Consultancy Limited (RECPDCL) is also working on NFMS (National Feeder Monitoring Scheme) to monitor the reliability and quality of power at a national level, aimed at an uninterrupted 24x7 power supply for all. The subsidiary is also developing unified billing and other software to be used by government discoms/power departments across the country.
REC Ltd also has a training institute called REC Institute of Power Management & Training (RECIPMT) in Hyderabad. RECIPMT conducts various training programmes covering diverse areas such as electricity generation, transmission, distribution systems and non-conventional/renewable energy systems.
REC Limited Financial Performance (FY25 vs FY24)
Revenue: REC Limited reported consolidated revenue of ₹56,366.55 crore in FY25 vs ₹47,504.75 crore in FY24. It showed an increase of 18.65% on a yearly basis, reflecting decent growth.
Operating Profit: The company reported an operating profit of ₹20,117.47 crore in FY25 vs ₹17,959.94 crore in FY24. It showed an increase of 12.01% on a year-on-year basis, indicating that the company's operating profit is growing well.
Net Profit: REC Limited reported a net profit of ₹15,884.23 crore in FY25 compared to ₹14,145.46 crore in FY24. It showed an increase of 12.29% on a yearly basis, indicating an improvement in overall performance.
REC Financial Highlights
- Revenue: REC reported revenue of ₹59,584.16 crore in FY26 vs ₹56,366.55 crore in FY25. It showed an increase of 5.71% on a yearly basis.
- Operating Profit: REC reported an operating profit of ₹20,766.33 crore in FY26 vs ₹20,117.47 crore in FY25. It showed an increase of 3.23% on a year-on-year basis.
- Net Profit: REC reported a net profit of ₹16,308.17 crore in FY26 vs ₹15,884.23 crore in FY25. It showed an increase of 2.67% on a yearly basis.
REC Quarterly Result Highlights
- REC reported revenue of ₹15,000.40 crore in Sep 2026, compared with ₹14,434.92 crore in Jun 2026, representing an increase of 3.92% on a quarter-on-quarter (QoQ) basis.
- REC reported an operating profit of ₹4,391.14 crore in Sep 2026, compared with ₹5,268.30 crore in Jun 2026, representing a decrease of 16.65% on a quarter-on-quarter (QoQ) basis.
- REC reported a profit of ₹3,477.73 crore in Sep 2026, compared with ₹4,192.76 crore in Jun 2026, reflecting a decrease of 17.05% on a QoQ basis.
- The earnings per share (EPS) of REC stood at ₹61.81 during Sep 2026.
Data Source: BSE, Company announcements
Securities shown are illustrative, not recommendations. Past performance does not guarantee future results.
