Demonstrating a commitment to clean energy transition and sectoral diversification, REC’s renewable energy portfolio expanded by 27% year-on-year to ₹86,660 crore. Additionally, its non-power infrastructure and logistics portfolio reached ₹61,637 crore, accounting for over 10% of total loan assets. During the quarter, the company recorded the highest power sector disbursements among peers, reaching ₹53,541 crore for Q2 and ₹79,207 crore for H1 FY27, while maintaining a healthy Net Interest Margin (NIM) of 3.22%.

REC strengthened its financial resilience with Net Worth rising 14% year-on-year to ₹94,325 crore, supported by a Capital Adequacy Ratio (CRAR) of 24.04%. Through targeted recovery mechanisms, net NPAs dropped to 0.11%, and Stage-II loan assets saw an 80% reduction to ₹3,235 crore. Highlighting its market leadership, REC also launched India’s first tokenized corporate bond issue under the SEBI Regulated Sandbox framework—which saw robust demand totaling ₹796 crore—and received multiple national honors including the Data Center Champion Award 2026.

Operational and Financial Highlights: Q1 FY27 vs Q4 FY26

–   Net interest income: ₹5,212 crore Vs ₹4,961 crore up by 5%

–   Net Profit: ₹4,149 crore Vs ₹3,362 crore, up by 23%

Despite a dynamic operating environment, REC sustained a healthy NIM of 3.34%, reflecting the strength of its lending portfolio and disciplined financial management. Consequently, the Company delivered an annualised EPS of ₹63.04 per share for the quarter ended June 30, 2026, underscoring its robust earnings performance.

REC’s standalone loan book stood at ₹5.90 lakh crore as on June 30, 2026 which is the largest for any CPSU-NBFC in India, demonstrating the strength and stability of its lending operation. Aided by growth in profits, the Net Worth has grown by 15% on Y-o-Y basis to ₹91,836 crore as on June 30, 2026.

The renewable energy portfolio continued to witness robust traction, growing to ₹78,596 crore, constituting 13.32% of the overall loan composition, reinforcing REC’s commitment to fostering sustainable infrastructure development and accelerating the growth of green energy in India. The infrastructure and logistic portfolio has grown to ₹59,289 crore, which is over 10% of the overall loan assets.

Driven by sustained initiatives to improve asset quality, the Company has reduced its Stage-3 loan asset to the total loan portfolio ratio to near-zero levels i.e., 0.11%.

Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at comfortable 23.06% as at June 30, 2026 against the regulatory minimum of 15% as mandated by RBI.

In line with its consistent dividend distribution track record and commitment to enhancing shareholder returns, the Board of Directors of the Company has declared the First Interim Dividend of ₹4.25 per equity share (face value ₹10 each).

The strengthening fundamentals of the Indian power sector have contributed to the improved financial position of power utilities, resulting in stronger overall credit profiles and consequently lower provisioning requirements. Reflecting its customer-centric approach, REC proactively shared these benefits with borrowers by rationalizing lending rates resulting in yield of 9.55% in Q1-FY 2026-27.

The Company was recognized with the ‘NBFC of the Year’ Award at the 3rd Annual Bharat NBFC & FinTech Summit & Awards 2026 and the ‘AI & GenAI Adoption Excellence Award’ at the 2nd Bharat PSU Manthan & Excellence Awards 2026, underscoring its strong business performance, digital innovation, and leadership in leveraging advanced technologies to drive operational excellence and enhance customer experience.

REC Limited is strategically broadening its business footprint through targeted investments in conventional power, renewal energy and infrastructure & logistics development in the country apart from being a strategic partner to government of India in implementing the government programs, policy and reforms in the country and steadily fostering long term growth.