New Delhi (17.10.2025): State-owned power financier REC Limited (formerly Rural Electrification Corporation) has reported its highest-ever half-yearly profit after tax (PAT) and declared a second interim dividend of ₹ 4.60 per equity share (on a face value of ₹ 10), bringing the total interim dividend for FY26 to ₹ 9.20.
The decision followed a board meeting that approved the limited reviewed standalone and consolidated financial results for the half-year (H1) ended September 30, 2025.
Robust Financial Performance: H1 FY26 vs H1 FY25 (Standalone)
The company delivered substantial growth across key financial metrics, driven by strong disbursement momentum:
Operational and Financial Highlights:
- Disbursements: ₹ 1,15,470 crore vs. ₹ 90,955 crore; up by 27%
- Total income: ₹ 29,828 crore vs. ₹ 26,633 crore; up by 12%
- Net interest income: ₹ 10,608 crore vs. ₹ 9,261 crore; up by 15%
- Net Profit: ₹ 8,877 crore vs. ₹ 7,448 crore; up by 19%
The surge in profitability was underpinned by a 97% increase in sanctions during the second quarter (Q2 FY26) alone, which reached ₹1,49,832 crore compared to ₹76,200 crore in the corresponding quarter last year.
Asset Quality and Efficiency:
REC successfully maintained high operational efficiency, with spreads at 2.89% and Net Interest Margin (NIM) at 3.64%. The company also saw significant strengthening of its balance sheet:
Loan Book Growth:
The loan book expanded to ₹5.82 lakh crore, up from ₹5.46 lakh crore as of September 30, 2024.
Asset Quality Improvement:
Net credit-impaired assets (Net NPAs) showed a dramatic reduction, falling to 0.24% as of September 30, 2025, down sharply from 0.88% a year earlier.
Provision Coverage:
The provision coverage ratio (PCR) on NPA assets stands robustly at 77.06%.
Aided by the record profits, the Net Worth of REC grew to ₹82,739 crore. This strong half-yearly performance has propelled the Annualized Earnings Per Share (EPS) up by 19% to ₹67.24 per share.
