THEBUSINESSBYTES BUREAU

NEW DELHI, APRIL 28, 2026

State-owned power sector financier REC Limited has delivered a stellar financial performance for 2025-26, posting its highest-ever net profit of ₹16,282 crore and announcing a record total dividend of ₹18.55 per share, underscoring its robust growth trajectory and unwavering commitment to shareholder value.

Approving its annual standalone and consolidated results for the year ended March 31, 2026, REC highlighted the remarkable transformation underway in India's power sector. With government-led reforms driving operational efficiency, power distribution companies have collectively turned profitable, creating a more stable lending environment and significantly improving asset quality. Reflecting this positive shift, REC has proactively passed on lower risk premiums to borrowers by rationalising yields on its loan assets.

REC's loan book touched an all-time high of ₹5.84 lakh crore as of March 31, 2026, registering an increase of nearly ₹17,000 crore over the previous year. The company's renewable energy portfolio continued its rapid expansion, surging 30 per cent year-on-year to ₹75,347 crore, aligning closely with India's clean energy ambitions.

The company's asset quality remained exemplary, with Net Stage-3 assets declining to a near-zero 0.12 per cent, while Stage-2 assets fell sharply by 75 per cent year-on-year. This disciplined approach to risk management has enabled REC to sustain growth without compromising portfolio quality.

REC's operational momentum remained strong throughout the year. Loan sanctions rose 21 per cent to ₹4,09,097 crore, while total disbursements increased 10 per cent to ₹2,11,189 crore. Excluding the Revamped Distribution Sector Scheme, disbursements jumped an impressive 28 per cent to ₹1,46,227 crore.

The company's financial strength was further reinforced by a 9 per cent rise in net worth to ₹84,290 crore. Its Capital Adequacy Ratio stood at a healthy 23.11 per cent, providing substantial headroom for future expansion. Interest spread and net interest margin remained strong at 2.62 per cent and 3.43 per cent, respectively, while earnings per share climbed to ₹61.71.

Continuing its tradition of rewarding investors, REC's Board has declared a final dividend of ₹1.55 per equity share, taking the total dividend for FY26 to a record ₹18.55 per share.

REC's strong performance has also been recognised at the national level. The company secured an 'Excellent' rating in its Memorandum of Understanding performance for the third consecutive year and climbed to fifth place among India's top profit-making Central Public Sector Enterprises. Its Maharatna status was reaffirmed earlier this year, reflecting sustained operational and financial excellence.

With sustainability deeply embedded in its growth strategy, REC has further strengthened its ESG leadership. Its outstanding performance earned it the highest rating among all companies assessed in the NSE ESG Ratings, reinforcing its position as a responsible lender driving India's energy transition.