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

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Key discussions included strengthening financing for green energy projects and enhancing power infrastructure. The Minister acknowledged REC’s pivotal role in ensuring sustainable, reliable, and inclusive energy access across the nation and emphasised continued synergy to advance India’s green energy targets.

REC reaffirmed its commitment to supporting the government’s vision of hashtag#energytransition through strategic investments and innovation. The meeting marked a step forward in reinforcing REC’s role as a key enabler in India’s power sector transformation.

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She was welcomed by Shri V.K. Singh, Director (Projects); Shri Harsh Baweja, Director (Finance), and other senior officials of REC Limited.

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The company’s total income rose to Rs 14,286.91 crore in the reporting quarter from Rs 12,071.54 crore in the year-ago period. Total expenses stood at Rs 9,105.94 crore in the latest December quarter as against Rs 7,899.85 crore a year earlier.

The board of the company also approved a third interim dividend of Rs 4.30 per share for the financial year 2024-25.The interim dividend shall be paid on or before March 6, 2025 to shareholders.

 Operational and Financial Highlights: Q3 FY25 vs Q3 FY24 (Standalone) 

• Q3 Net Profit grows ₹4,029 crore, up by 23%

• Market capitalization grows ₹1,31,844 crore, up by 21%

• Asset Under Management (AUM) grows to ₹65 lakh crore

• 3rd interim dividend of ₹30 per equity share (on face value of ₹10/- each)

• Net interest income: ₹4,930 crore Vs ₹4,153 crore, up by 19%

• Net credit-impaired assets reduced to 0.74% from 0.82%

• Revenue from operations: ₹14,157 crore Vs ₹11,982 crore, up by 18%

• Disbursements: ₹54,692 crore Vs ₹46,358 crore, up by 18%

• Total income: ₹14,173 crore Vs ₹12,000 crore, up by 18%

• Average cost of funds: 7.18% Vs 7.28%, reduction by 10 bps

• Spread: 2.95% Vs 2.85%, up by 10 bps

• Net interest margin: 3.66% Vs 3.61%, up by 5 bps

Operational and Financial Highlights: 9M FY25 vs 9M FY24 (Standalone) 

• Net Profit: ₹11,477 crore Vs ₹10,003 crore, up by 15%

• Net interest income: ₹14,191 crore Vs ₹11,422 crore, up by 24%

• Revenue from operations: ₹40,752 crore Vs ₹34,533 crore, up by 18%

• Disbursements: ₹1,45,647 crore Vs ₹1,22,089 crore, up by 19%, of which disbursements to renewables constituted:

• ₹17,612 crore Vs ₹9,858 crore, i.e. with YoY increase of 79%

• Total income: ₹40,805 crore Vs ₹34,571 crore, up by18%

• Spread: 2.94% Vs 2.82%, up by 12 bps

• Net interest margin: 3.64% Vs 3.52%, up by 12 bps

• Return on net worth: 21.07%

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