REC Declares ₹4.25 Dividend Per Share For FY 2026-27

REC Limited, a leading NBFC in India, has declared its first interim dividend of ₹4.25 per equity share for the financial year 2026-27. The company's Board of Directors approved the standalone and consolidated financial results for the quarter ended June 30, 2026.

The company's net interest income stood at ₹5,212 crore, up 5% from the previous quarter. The net profit increased by 23% to ₹4,149 crore, driven by a healthy net interest margin (NIM) of 3.34%. The company's annualised earnings per share (EPS) was ₹63.04 per share for the quarter.

REC's standalone loan book stood at ₹5.90 lakh crore as on June 30, 2026, making it the largest for any CPSU-NBFC in India. The company's net worth grew by 15% on a year-on-year basis to ₹91,836 crore. The renewable energy portfolio continued to grow, reaching ₹78,596 crore, constituting 13.32% of the overall loan composition.

The company has reduced its Stage-3 loan asset to the total loan portfolio ratio to near-zero levels, indicating improved asset quality. The Capital Adequacy Ratio (CRAR) stands at 23.06%, against the regulatory minimum of 15% mandated by the RBI.

The Board of Directors has declared the first interim dividend of ₹4.25 per equity share, in line with its consistent dividend distribution track record. The company has also been recognized with awards for its business performance, digital innovation, and leadership in leveraging advanced technologies.

The strengthening fundamentals of the Indian power sector have contributed to the improved financial position of power utilities, resulting in stronger overall credit profiles and lower provisioning requirements. REC has proactively shared these benefits with borrowers by rationalizing lending rates, resulting in a yield of 9.55% in Q1-FY 2026-27.

The company is strategically broadening its business footprint through targeted investments in conventional power, renewable energy, and infrastructure & logistics development in the country. With its strong business performance and commitment to enhancing shareholder returns, REC Limited is well-positioned for future growth.

The declaration of the first interim dividend is a positive development for the company's shareholders, and reflects the company's commitment to delivering value to its stakeholders. The company's focus on renewable energy and infrastructure development is also in line with the government's initiatives to promote sustainable growth and development.

In conclusion, REC Limited's financial performance for the quarter ended June 30, 2026, has been strong, driven by a healthy NIM and improved asset quality. The company's commitment to enhancing shareholder returns and its focus on sustainable growth and development make it an attractive investment opportunity.

The company's future plans include expanding its business footprint through targeted investments in conventional power, renewable energy, and infrastructure & logistics development. With its strong business performance and commitment to delivering value to its stakeholders, REC Limited is well-positioned for future growth and success.

Overall, the company's financial performance and future plans make it an important player in the Indian power sector, and its commitment to sustainable growth and development is in line with the government's initiatives to promote environmentally friendly and socially responsible business practices.