REC and PFC post Q1 results with record profits

REC Limited and Power Finance Corporation (PFC) have both posted significant profit growth for the first quarter of FY26.

REC reported its highest-ever quarterly net profit of Rs 4,451 crore, marking a 29 per cent rise compared to the previous year. Disbursements for the quarter reached Rs 59,508 crore, a 36 per cent increase year-on-year. Project sanctions crossed Rs 1 lakh crore, with distribution projects comprising 43 per cent and renewable energy 20 per cent of the total sanctioned amount.

As of 30 June 2025, REC’s total loan book stood at Rs 5.85 lakh crore, up 10 per cent from the previous year. Renewable energy loans grew 49 per cent year-on-year to Rs 63,850 crore. The company announced an interim dividend of Rs 4.60 per share.

PFC reported a standalone net profit of Rs 4,501.50 crore for the quarter ending 30 June 2025, up from Rs 3,717.88 crore in the same quarter last year. Total standalone income stood at Rs 13,776.78 crore, with interest income contributing Rs 13,738.89 crore. Dividend income stood at Rs 6 crore. Profit before tax was Rs 5,513.16 crore.

An interim dividend of Rs 3.70 per equity share was declared. The record date for eligibility is 18 August 2025, and the payment will be completed by 5 September 2025. Shareholders are required to submit documentation online for tax exemptions or reduced deductions.

On a consolidated basis, PFC recorded a net profit of Rs 8,981.45 crore for Q1 FY26, compared to Rs 7,182.06 crore a year earlier. Consolidated operational revenue stood at Rs 28,539.04 crore, with interest income at Rs 28,257.53 crore.

The impairment loss allowance for standalone assets across all stages was Rs 13,730.15 crore. Gross credit-impaired assets ratio was 1.92 per cent, while net ratio stood at 0.38 per cent.