REC Q2 FY27 Net Profit ₹7,541 Crore, Declares Dividend

REC Limited

Key Outcomes from Board Meeting

The Board of Directors of REC Limited, in its meeting held on October 26, 2026, approved the following:

1. Unaudited Financial Results: Approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. The results were reviewed by the Audit Committee and have been subjected to a limited review by the joint statutory auditors, M/s. G.S. Mathur & Co. and M/s. S.K. Mehta & Co.

2. 2nd Interim Dividend: Declared a 2nd interim dividend of ₹3.50 (Rupees Three and Paise Fifty only) per equity share of ₹10 each for the financial year 2026-27.

Detailed Financial Performance (Standalone)

Income Statement Highlights (₹ in crores):

| Total Income | 14,736.77 | 14,331.40 | 15,094.61 | 29,068.17 | 29,828.42 | 59,187.22 |

| Profit Before Tax | 4,273.95 | 5,209.32 | 5,552.80 | 9,483.27 | 11,199.70 | 20,713.19 |

| Net Profit | 3,391.18 | 4,149.46 | 4,425.86 | 7,540.64 | 8,876.88 | 16,282.26 |

| Basic EPS (₹) | 12.88 | 15.76 | 16.81 | 28.64 | 33.71 | 61.71 |

Balance Sheet Highlights (₹ in crores) as of 30-09-2026 (Unaudited):

Total Assets: ₹6,72,641.34
Loan Assets: ₹6,12,677.74
Financial Liabilities: ₹5,76,851.59 (includes Debt Securities: ₹3,25,610.94; Other Borrowings: ₹2,01,540.71)
Net Worth: ₹94,324.91

Cash Flow Highlights (H1 FY27, ₹ in crores):

Net Cash Outflow from Operating Activities: (₹17,586.30)
Net Cash Inflow from Financing Activities: ₹17,852.40
Net Increase in Cash & Equivalents: ₹361.23

Detailed Financial Performance (Consolidated)

The consolidated results include REC Limited and its subsidiary, REC Power Development and Consultancy Ltd.

Income Statement Highlights (₹ in crores):

| Total Income | 15,010.43 | 14,469.49 | 15,162.38 | 29,479.92 | 29,986.36 | 59,628.35 |

| Profit Before Tax | 4,391.14 | 5,268.30 | 5,548.94 | 9,659.44 | 11,215.35 | 20,766.33 |

| Net Profit | 3,477.73 | 4,192.76 | 4,414.93 | 7,670.49 | 8,880.64 | 16,308.17 |

| Basic EPS (₹) | 13.21 | 15.92 | 16.77 | 29.13 | 33.73 | 61.81 |

Subsidiary Performance:

REC Power Development and Consultancy Limited contributed total assets of ₹1,611.65 crores, total revenues of ₹285.60 crores (Q2) and ₹425.35 crores (H1), and net profit of ₹96.82 crore (Q2) and ₹140.13 crore (H1) for the period ended September 30, 2026.

Dividend Details

Dividend Per Share: ₹3.50
Record Date: Friday, October 30, 2026
Payment Date: On or before November 21, 2026
Taxation: Dividend income is taxable in the hands of shareholders, and TDS will be deducted as per Income Tax Act, 2025. Shareholders must submit documents for lower/no TDS by November 1, 2026.
Payment Mode: Dividend will be paid exclusively through electronic mode.
This is the second interim dividend for FY27; a first interim dividend of ₹4.25 was paid earlier.

Key Operational and Strategic Updates

Loan Book & AUM: The loan book stood at ₹6.17 lakh crore as of September 30, 2026, registering a sequential growth of 5% (₹26,537 crore growth in Q2).
Sectoral Portfolio: The renewable energy portfolio grew 27% YoY to ₹86,660 crore. The non-power infrastructure and logistics portfolio reached ₹61,637 crore, constituting over 10% of total loan assets.
Asset Quality: Net NPA stood at 0.11%. Stage-III (Gross NPA) assets were ₹1,380.40 crore with a provisioning coverage of 51.12%. A Stage-III asset of ₹4.16 crore was resolved during the quarter. Stage-II assets reduced by 80% YoY to ₹3,235 crore.
Capital Adequacy: CRAR was 24.04% and CET-1 ratio was 20.91% as of September 30, 2026, well above regulatory minima.
Merger Update: The Scheme of Merger into Power Finance Corporation Ltd. (PFC) received a no-objection certificate from RBI on October 15, 2026, and no-objection letters from BSE and NSE on October 19, 2026. The scheme remains subject to approvals from shareholders, creditors, and the Ministry of Corporate Affairs.
Regulatory Classification: RBI classified REC as an Upper Layer NBFC (UL-NBFC) during the quarter, and the company states it is in compliance with all applicable regulations.
Fundraising: The company raised ₹19,267 crore through private placement of debt securities in Q2 FY27, with no deviations in the use of proceeds.
Innovation: REC successfully issued India's first pilot issue of tokenized corporate bonds under SEBI's sandbox framework, amounting to ₹500 crore.

Auditor's Review

The limited review of the unaudited financial results was conducted by the joint statutory auditors, who stated that nothing has come to their attention that causes them to believe that the statements contain any material misstatement. The review relied on the Expected Credit Loss (ECL) model certified by an outside agency.