New Delhi: REC Limited reported a consolidated net profit of Rs 4,466 crore for the quarter ended June 30, 2025 (Q1 FY26), up 29 percent from Rs 3,460 crore in Q1 FY25, driven by robust loan disbursements and improved asset quality. On a standalone basis, net profit rose to Rs 4,451 crore, also up 29 percent from Rs 3,442 crore a year ago.
Compared to the March quarter (Q4 FY25), consolidated profit rose 3.6 percent while standalone profit was up 5.1 percent.
REC’s standalone disbursements surged 36 percent year-on-year (YoY) to Rs 59,508 crore in Q1 FY26, with lending to the renewable sector growing by 35 percent. This helped the company’s total income increase 13 percent YoY to Rs 14,734 crore. On a quarter-on-quarter (QoQ) basis, however, income declined marginally by 3 percent.
The company’s net interest income (NII) rose 17 percent YoY to Rs 5,247 crore. Despite some moderation sequentially, REC maintained its net interest margin (NIM) at 3.74 percent and spreads at 2.96 percent.
Net credit-impaired assets dropped to 0.24 percent in June 2025 from 0.82 percent in June 2024, indicating significant improvement in asset quality. The provision coverage ratio stood at a healthy 77.05 percent.
REC wrote off a stressed asset worth Rs 392 crore during the quarter, related to TRN Energy, while reversing Rs 272 crore of provisions. Interest income on other credit-impaired assets continues to be held back pending resolution.
REC’s standalone operating margin improved to 37.96 percent in Q1 FY26 from 33.11 percent a year ago, while net profit margin rose to 30.21 percent from 26.41 percent. On a consolidated basis, operating margin was 37.86 percent (vs 33.15 percent last year) and net margin stood at 30.12 percent (up from 26.43 percent).
Standalone EBITDA grew 20 percent YoY to approximately Rs 5,560 crore, while profit before tax rose 31 percent to Rs 5,647 crore. On the consolidated front, profit before tax rose 30 percent YoY to Rs 5,666 crore.
Earnings per share (EPS) rose 29 percent YoY to Rs 67.60 on an annualised basis. Basic and diluted EPS for Q1 stood at Rs 16.90 standalone and Rs 16.96 consolidated.
The board approved an interim dividend of Rs 4.60 per share for FY26. REC’s standalone net worth rose to Rs 79,688 crore as of June 30, 2025, up 10 percent from Rs 72,351 crore a year ago. Consolidated net worth rose to Rs 80,440 crore.
The company’s debt-to-equity ratio was steady at 6.31 times (vs 6.22 a year ago) on a consolidated basis, while total debt to assets stood at 0.80.
REC Power Development and Consultancy Ltd contributed Rs 92 crore in revenue and Rs 15 crore in net profit during the quarter. The group’s total income at the consolidated level stood at Rs 14,824 crore, up 13 percent YoY, though down 3.5 percent QoQ.
