THEBUSINESSBYTES
BUREAU
NEW
DELHI, OCTOBER 26, 2026
State-owned REC Ltd
on Monday reported a 5 per cent sequential increase in its loan book to ₹6.17 lakh crore in the September
quarter, supported by strong disbursements and expansion in its renewable
energy portfolio, which grew 27 per cent year-on-year to ₹86,660 crore.
The company’s assets
under management (AUM) increased by ₹26,537 crore during the second quarter of the current
financial year, while its net worth rose 14 per cent year-on-year to ₹94,325
crore as of September 30, 2026.
REC reported a profit
after tax (PAT) of ₹7,541
crore for the half year ended September 30, 2026, translating into an
annualised earnings per share of ₹57.27, the company said in a statement.
The board of
directors, which approved the standalone and consolidated financial results for
the quarter and half year ended September 30, 2026, also declared a second
interim dividend of ₹3.50
per equity share of ₹10 face value for the financial year 2026-27.
The company said its
loan book expanded 5 per cent sequentially in the July-September quarter,
reflecting sustained demand for power-sector financing amid rising peak
electricity demand and its focus on technology-driven credit assessment and
customer-centric solutions.
REC recorded
power-sector disbursements of ₹53,541
crore during the second quarter and ₹79,207 crore in the first half of FY27,
which the company said were the highest among peers.
The company
maintained a net interest margin of 3.22 per cent during the first half of the
financial year, even as improving financial health of power utilities led to a
decline in sectoral credit risk premiums.
REC continued to
strengthen its asset quality, with net non-performing assets declining to 0.11
per cent as of September 30, 2026. It resolved a Stage III asset worth ₹4.16 crore during the quarter, while
Stage II loan assets fell 80 per cent year-on-year to ₹3,235 crore, aided by
focused recovery efforts and effective monitoring.
The renewable energy
portfolio expanded to ₹86,660
crore, reflecting the company's growing exposure to India's clean energy
transition. Meanwhile, its portfolio in the non-power infrastructure and
logistics segments increased to ₹61,637 crore, accounting for more than 10 per
cent of its overall loan assets.
REC's capital
position remained strong, with a capital adequacy ratio (CRAR) of 24.04 per
cent and Common Equity Tier 1 (CET1) capital of 20.91 per cent as of September
30, 2026, comfortably above the Reserve Bank of India's prescribed minimum
requirements of 15 per cent and 9 per cent, respectively.
In a significant
development for India's debt capital markets, REC issued the country's first
pilot tranche of tokenised corporate bonds under the Securities and Exchange Board
of India's regulated sandbox framework.
The ₹500-crore issue attracted bids worth
₹796 crore, reflecting strong investor interest in the emerging financing
instrument, the company said.
During the quarter, REC also received the Data Center Champion Award 2026 and Silver Awards for Best Corporate Bond Issuer and Best PSU Issuer, recognising its role in infrastructure financing and debt capital markets.
With an expanding presence across power, renewable energy, infrastructure and logistics, REC said it remains focused on supporting India's infrastructure development and emerging financing requirements while maintaining financial strength and asset quality.
