REC Limited has reported its highest-ever annual net profit of ₹16,282 crore for the financial year ended March 31, 2026. This significant milestone reflects a strong performance across its operations, supported by a healthy net worth of ₹84,290 crore. The company has also rewarded its shareholders with a total dividend of ₹18.55 per share for the year, underscoring its commitment to delivering consistent value and maintaining robust financial health in a challenging macroeconomic environment.
Record Financial Performance
REC Limited has delivered a stellar performance for the financial year ended March 31, 2026. The company achieved an all-time high annual net profit of ₹16,282 crore, a testament to its successful operational strategy and sustainable growth focus. This growth is backed by a substantial loan book, which reached an all-time high of ₹5.84 lakh crore as of the end of the fiscal year.
Strategic Growth and Dividends
The company continues to prioritize shareholder returns, declaring a final dividend of ₹1.55 per equity share. When combined with the interim dividends already distributed in four tranches, the total dividend for FY 2025-26 stands at ₹18.55 per share, based on a face value of ₹10 per share. This decision reflects the company’s strong cash flow and commitment to rewarding investors.
Operational Highlights
REC has shown remarkable strength in its key operational metrics during the year:
- Sanctions: Reached ₹4,09,097 crore, a 21% year-on-year increase.
- Disbursements: Totaled ₹2,11,189 crore, up by 10%.
- Renewable Energy: The renewable loan book surged to ₹75,347 crore, marking 30% growth.
- Asset Quality: Maintained an exceptional Net Stage-3 loan (NPA) ratio of nearly 0.12%.
- Capital Adequacy: A robust CRAR of 23.11% positions the company well for future lending opportunities.
Future Outlook
The company attributes its success to the ongoing transformation in the power distribution sector, where legacy loss-making companies have moved toward profitability. REC’s focus on rationalizing loan yields and its reaffirmed ‘Maharatna’ status highlight its leadership in the power financing space. With a strong capital foundation, the company remains well-equipped to support the nation’s infrastructure requirements while maintaining healthy interest spreads of 2.62% and a NIM of 3.43%.
Source: BSE
