REC Posts ₹44.66 Billion Profit In Q1 As Revenue Surges Past ₹147 Billion
REC Ltd has reported a consolidated net profit of ₹44.66 billion for the quarter ended June 2025, marking a robust start to the fiscal year. The company’s total revenue from operations reached ₹147.37 b...
REC Posts ₹44.66 Billion Profit In Q1 As Revenue Surges Past ₹147 Billion
REC Ltd has reported a consolidated net profit of ₹44.66 billion for the quarter ended June 2025, marking a robust start to the fiscal year. The company’s total revenue from operations reached ₹147.37 billion, driven by strong loan disbursements and improved asset quality across its power and infrastructure financing portfolio.
Key Highlights From Q1 FY26 Financials
- Net profit rose 16.6 percent year-on-year, supported by higher interest income and disciplined cost management
- Total revenue from operations increased 18.7 percent year-on-year, reflecting growth in loan book and better yield realization
- Interest income contributed over 85 percent of total revenue, with loan assets expanding across renewable energy and logistics sectors
- Operating margin remained healthy at 33.8 percent, while net interest margin improved to 3.6 percent
Strategic Developments And Sectoral Impact
- REC’s loan book crossed ₹5.3 lakh crore, with renewable energy sanctions accounting for over ₹1.36 lakh crore
- The company continues to diversify into non-power infrastructure, including airports, metro rail, and green hydrogen projects
- Asset quality improved, with net credit-impaired assets declining to 0.86 percent and provision coverage ratio at 68.45 percent
- REC declared an interim dividend of ₹3.50 per share, reinforcing its commitment to shareholder returns
Outlook
REC’s strong Q1 performance underscores its role as a key infrastructure financier. With rising demand for clean energy and transport projects, the company is well-positioned to sustain growth and maintain profitability through FY26.
Sources: Moneycontrol, Economic Times, Business Standard, REC Filings, Press Information Bureau.
REC Ltd has reported a consolidated net profit of ₹44.66 billion for the quarter ended June 2025, marking a robust start to the fiscal year. The company’s total revenue from operations reached ₹147.37 billion, driven by strong loan disbursements and improved asset quality across its power and infrastructure financing portfolio.
Key Highlights From Q1 FY26 Financials
- Net profit rose 16.6 percent year-on-year, supported by higher interest income and disciplined cost management
- Total revenue from operations increased 18.7 percent year-on-year, reflecting growth in loan book and better yield realization
- Interest income contributed over 85 percent of total revenue, with loan assets expanding across renewable energy and logistics sectors
- Operating margin remained healthy at 33.8 percent, while net interest margin improved to 3.6 percent
Strategic Developments And Sectoral Impact
- REC’s loan book crossed ₹5.3 lakh crore, with renewable energy sanctions accounting for over ₹1.36 lakh crore
- The company continues to diversify into non-power infrastructure, including airports, metro rail, and green hydrogen projects
- Asset quality improved, with net credit-impaired assets declining to 0.86 percent and provision coverage ratio at 68.45 percent
- REC declared an interim dividend of ₹3.50 per share, reinforcing its commitment to shareholder returns
Outlook
REC’s strong Q1 performance underscores its role as a key infrastructure financier. With rising demand for clean energy and transport projects, the company is well-positioned to sustain growth and maintain profitability through FY26.
Sources: Moneycontrol, Economic Times, Business Standard, REC Filings, Press Information Bureau.