Sh. Jitendra Srivastava, CMD, REC Ltd, interacted with various print and electronic media houses at New Delhi yesterday, following the release of the annual financial result for FY2024-25. During the interaction, Sh. Srivastava outlined REC’s future roadmap and highlighted REC’s commitment towards financing green energy and supporting India’s energy transition goals.
REC is shifting its focus towards thermal power projects to meet rising energy demands, while also exploring investments in nuclear power, especially Small Modular Reactors (SMRs), with interest in projects by state-owned entities. The company recently approved new thermal power plants in Rajasthan, Madhya Pradesh, Haryana, and Maharashtra, reaffirming its commitment to renewable energy by aiming to allocate 30% of its loan portfolio to green energy by 2030. Under the leadership of CMD Jitendra Shrivastava, REC is targeting zero NPAs by the end of FY25, having reduced NPAs to 0.38% as of March 31, 2025. Financially, the company reported a 5.6% increase in Q4FY25 net profit to ₹4,309 crore and total income of ₹15,348 crore, up from ₹12,706 crore the previous year.
REC is evaluating entering the nuclear power sector within 2-3 years, targeting a Rs 10-12 lakh crore lending opportunity, with a focus on small modular reactors (SMRs).
The company plans to lend to public sector entities developing nuclear projects, viewing nuclear as a new growth avenue. REC continues to focus on expanding its thermal power project financing to support India’s goal of increasing thermal capacity by 15 GW to 95 GW by 2031-32. It is actively involved in the PM Suryaghar Muft Bijlee Yojana, with 51 lakh applications so far and aims to reach 55 lakh households by FY26, promoting rooftop solar adoption.
The company intends to increase its renewable energy loan portfolio (wind, hydro, solar, green hydrogen) from around 10% to 30% by 2030, with plans to fund more private sector projects.
A new joint venture between REC Power Development and Consultancy Limited and BHEL (50:50) was approved to develop renewable energy and other power infrastructure projects.
MINT, Financial Express , Business Standard
Financial Performance:
REC aims to achieve zero NPAs by end of FY26, improving from 0.38% net NPA and 1.35% gross NPA in FY25.
The company was previously targeting zero NPAs by FY25 but extended the goal to FY26.
REC’s net profit for FY25 reached Rs 15,713 crore, marking a 12% increase from FY24.
In Q4 FY25, standalone net profit grew 5.47% to Rs 4,236.2 crore from Rs 4,016.3 crore in the same quarter last year.
Revenue from operations for Q4 rose 20.18% to Rs 15,159.44 crore from Rs 12,613.14 crore in the previous year.
Net interest income (NII) in Q4 increased 37.6% to Rs 5,877 crore from Rs 4,272.5 crore in the same period of FY24.
Interest income grew by 20.6% to Rs 14,935 crore in Q4 FY25 from Rs 12,383.58 crore a year earlier.
The company’s Asset Under Management (AUM) grew to Rs 5.66 lakh crore from Rs 5.09 lakh crore.
Net credit-impaired assets decreased to 0.38% from 0.86% after resolving five credit-impaired loans worth Rs 6,171 crore.
Net worth increased by 13% YoY to Rs 77,638 crore, supported by higher profits. The capital adequacy ratio (CRAR) remained strong at 25.99%, indicating ample capacity for future growth.
Major Highlights
REC Q4 Profit rises 5.6% YoY to ₹4,309 crore, NII surges 38%; ₹2.60 dividend declared
REC to focus on thermal, nuclear projects; targets zero NPAs by FY25
REC aims to enter nuclear space, sees Rs 12 lakh crore lending opportunity
