REC Q1 Net Profit at ₹4,149 Crore, Declares Dividend

The Board of REC Limited approved the following items:

Approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1 FY27).
The results were reviewed by the Audit Committee and approved by the Board in their meetings held on July 24, 2026.
The financial results were subjected to a Limited Review by the joint statutory auditors, M/s. Kailash Chand Jain & Co. and M/s. SCV & Co. LLP.

Declared a first interim dividend of ₹4.25 (Rupees Four and Paise Twenty Five only) per equity share of ₹10 each.
The record date for determining shareholder eligibility is Friday, July 31, 2026.
The dividend will be paid on or before August 23, 2026.
Dividend will be paid exclusively via electronic mode; physical instruments are discontinued.

Fixed the record date as Friday, August 14, 2026, for the payment of the final dividend of ₹1.55 per share for FY26.
This dividend was previously recommended by the Board and is subject to shareholder approval at the ensuing AGM.
Payment will be made on or before September 24, 2026.

The company reiterated that tax will be deducted at source (TDS) on dividend payments as per the Income Tax Act, 1961.
Shareholders wishing for lower or nil TDS must submit scanned copies of PAN, Form 15G/15H, and other documents by July 31, 2026, to virenders@alankit.com with a copy to recier@alankit.com.

Appointed Smt. Poonam Chauhan as a Part-time Non-Official (Independent) Director with effect from July 21, 2026.
Her term is for three years, subject to shareholder approval and further orders from the Government of India (Ministry of Power).
Brief Profile: Holds a B.Ed. from Chaudhary Charan Singh University and an M.A. in English from Kurukshetra University. She has extensive experience in education and social development.

Appointed Shri Mukul Agarwal as Internal Auditor of the company with effect from August 1, 2026.
Brief Profile: He is a General Manager (Finance & Accounts) at REC, a member of the Institute of Cost Accountants of India, and holds a Bachelor's degree in Commerce.

Net Profit for the period (Consolidated): ₹4,192.76 crore
Total Comprehensive Income (Consolidated): ₹7,439.95 crore
Basic EPS (Consolidated): ₹15.92
The consolidated results include the subsidiary, REC Power Development and Consultancy Ltd., which contributed revenue of ₹139.74 crores and net profit of ₹43.30 crores for the quarter.

The results are prepared in accordance with Ind AS 34 - 'Interim Financial Reporting'.

The Board had approved a Draft Scheme of Merger with Power Finance Corporation Ltd. (PFC) on June 28, 2026.
The share exchange ratio is 88 PFC shares for every 100 REC shares.
The appointed date is the opening of business on April 1, 2027, or a mutually agreed date.
The scheme is subject to statutory, regulatory, shareholder, and creditor approvals.

Provisioning on loan assets is based on the Expected Credit Loss (ECL) methodology under Ind-AS.
Loan Assets (Standalone as of June 30, 2026): ₹589,999.94 crore
Stage 1 & 2: ₹588,616.48 crore
Stage 3 (Credit Impaired): ₹1,383.46 crore
Impairment Allowance (Standalone): ₹5,763.94 crore
Coverage Ratio: 0.98%
An additional impairment allowance of ₹483.03 crore is maintained for Letters of Comfort/Undertaking and Undrawn Commitments.
No interest income is recognized on credit-impaired assets.

The company operates in a single business segment: lending to power, logistics, and infrastructure.

All listed non-convertible debt securities are fully secured (1.40x cover).
The overall security cover for all secured debt (listed & unlisted) is 1.69x as of June 30, 2026.
There were no defaults in debt repayment as of June 30, 2026.

The company raised ₹12,495.00 crore through private placements of NCDs in June 2026.
The proceeds have been fully utilized with no deviations from the stated objects.

Key ratios for the quarter ended June 30, 2026 (Standalone):