REC posts net profit of ₹4,193 in Q1 FY27
AI Summary
State-run REC reported a 6% year-on-year decline in consolidated net profit to ₹4,193 crore for Q1 FY27, although it saw a 24% increase sequentially. The company maintained a strong Net Interest Margin of 3.34% and reported an annualized EPS of ₹63.04, while its net worth grew by 15% year-on-year. REC's commitment to sustainable infrastructure is evident with a growing renewable energy portfolio and a comfortable Capital Adequacy Ratio of 23.06%, alongside declaring an interim dividend of ₹4.25 per share.
State-run REC on Friday reported a 6 per cent Y-o-Y decline in its consolidated net profit at around ₹4,193 crore in Q1 FY27.On a sequential basis, the net profit of the power sector financier was higher by roughly 24 per cent.
REC’s consolidated total income during the June quarter in the current financial year stood at around ₹14,200 crore compared to ₹14,119 crore in Q4 FY26 and ₹14,591 crore in Q1 FY26.
Its consolidated total expenses were at ₹14,469 crore in Q1 FY27 as against ₹14,583 crore during Q4 FY26 and ₹14,824 crore in Q1 FY26.
Despite a dynamic operating environment, REC sustained a healthy Net Interest Margin (NIM) of 3.34 per cent, reflecting the strength of its lending portfolio and disciplined financial management, the state-controlled NBFC said.
Consequently, the company delivered an annualised EPS of ₹63.04 per share for the quarter ended June 30, 2026, underscoring its robust earnings performance, it added.
“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,” it said.
Aided by growth in profits, the Net Worth has grown by 15 per cent on Y-o-Y basis to Rs 91,836 crore as on June 30, 2026.
The renewable energy portfolio continued to witness robust traction, growing to Rs 78,596 crore, constituting 13.32 per cent 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 per cent of the overall loan assets, REC noted.
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--0.11 per cent.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the company stands at comfortable 23.06 per cent as at June 30, 2026 against the regulatory minimum of 15 per cent as mandated by RBI.
In line with its consistent dividend distribution track record and commitment to enhancing shareholder returns, REC Board has declared the First Interim Dividend of Rs 4.25 per equity share.
Original Article
Published on Hindu BusinessLine