REC reports highest-ever annual profit of Rs 16,282 crore

REC Limited reported its highest-ever standalone net profit of Rs 16,282 crore for the financial year ended March 31, 2026, up from Rs 15,713 crore in FY25.

On a consolidated basis, net profit stood at Rs 16,308 crore in FY26, compared to Rs 15,884 crore in the previous year. Standalone net worth increased 9% to Rs 84,290 crore. For Q4FY26, standalone net profit was Rs 3,362 crore, while total standalone revenue from operations rose to Rs 59,628 crore from Rs 56,434 crore in FY25. Net interest margin for the year was 3.43%.

The company’s loan book reached Rs 5.84 lakh crore, with the renewable energy portfolio growing 30% year-on-year to Rs 75,347 crore. Asset quality improved, with net Stage-3 loans declining to 0.12% of gross loan assets as of March 31, 2026, from 0.38% a year earlier. The Capital Adequacy Ratio stood at 23.11%.

During the year, sanctions increased 21% to Rs 4,09,097 crore, and disbursements rose 10% to Rs 2,11,189 crore. Earnings per share (EPS) rose to Rs 61.71 from Rs 59.55 in FY25.

The Board recommended a final dividend of Rs 1.55 per equity share, subject to shareholder approval. Including interim dividends of Rs 17 per share, total dividend for FY26 stands at Rs 18.55 per share, the highest declared by the company.

REC said improved financial performance of power distribution companies supported a more stable operating environment and better asset quality. It added that reduced risk premiums were passed on to borrowers through rationalisation of lending yields.