New Delhi, October 26, 2026: REC Limited reported strong growth in its lending business during the second quarter of FY 2026-27, with its loan book reaching ₹6.17 lakh crore as of September 30, 2026. The company’s assets under management (AUM) increased by ₹26,537 crore during the quarter, while its renewable energy portfolio expanded to ₹86,660 crore, registering 27% year-on-year growth.
The Board of Directors approved REC’s standalone and consolidated financial results for the quarter and half year ended September 30, 2026, at its meeting on October 26, 2026.
While REC’s consolidated profit after tax (PAT) for the September quarter stood at ₹3,477.73 crore, down approximately 21% from the year-ago period, its cumulative profit for the first half of FY27 reached ₹7,540.64 crore. The company also declared a second interim dividend of ₹3.50 per equity share for FY 2026-27.
REC Q2 FY27 Results: Key Financial Highlights
- AUM growth: Increased by ₹26,537 crore during Q2 FY27.
- Loan book: ₹6.17 lakh crore as of September 30, 2026, up 5% sequentially.
- Q2 consolidated PAT: ₹3,477.73 crore, compared with ₹4,414.93 crore a year earlier.
- H1 FY27 PAT: ₹7,540.64 crore.
- Renewable energy portfolio: ₹86,660 crore, up 27% year-on-year.
- Net worth: ₹94,324.91 crore, an increase of 14% year-on-year.
- Net interest margin: 3.22% during H1 FY27.
- Net NPA: 0.11% as of September 30, 2026.
- Power sector disbursements: ₹53,541 crore in Q2 FY27 and ₹79,207 crore in H1 FY27, the highest among peers, according to the company.
- Interim dividend: ₹3.50 per equity share of ₹10 face value.
- Capital adequacy: CRAR of 24.04% and CET1 capital ratio of 20.91%.
REC Loan Book Grows 5% Sequentially
REC’s loan book expanded by 5% compared with the previous quarter, reaching ₹6.17 lakh crore at the end of September 2026. The company attributed its growth to strong power offtake, rising electricity demand and its focus on technology-driven credit assessment and customer-focused financing solutions.
India’s peak power demand reached a new high in FY27, highlighting the growing financing requirements of the electricity sector. REC continues to strengthen its position as a major financier of power-sector projects and utilities.
The company also pointed to improvements in the financial health of power utilities, supported by the Ministry of Power’s continued targeted efforts. Lower sectoral credit risk premiums have enabled REC to pass on market-related benefits to the sector while maintaining a net interest margin of 3.22% during the first half of FY27.
REC reported power-sector disbursements of ₹53,541 crore during the second quarter and ₹79,207 crore during H1 FY27. The company stated that both figures represented the highest disbursements among its peers in the power sector.
REC Reports ₹7,540.64 Crore Profit in H1 FY27
REC recorded a profit after tax of ₹7,540.64 crore for the half year ended September 30, 2026. The company’s annualised earnings per share (EPS) stood at ₹57.27.
Net worth increased by 14% year-on-year to ₹94,324.91 crore, reflecting the company’s strengthened capital base and sustained profitability.
However, the quarterly and half-year figures show different trends. REC’s consolidated PAT for Q2 FY27 declined to ₹3,477.73 crore from ₹4,414.93 crore in the corresponding quarter of the previous financial year. Revenue from operations also decreased to ₹15,000.40 crore from ₹15,152.67 crore.
Despite the decline in quarterly profit, REC continued to expand its lending portfolio and maintain a strong capital position.
Renewable Energy Portfolio Reaches ₹86,660 Crore
REC continued to increase its exposure to renewable energy, with the portfolio reaching ₹86,660 crore as of September 30, 2026. This represented year-on-year growth of 27% and underlined the company’s role in financing India’s clean energy transition.
Alongside renewable energy, REC is expanding into non-power infrastructure and logistics. The portfolio in these sectors increased to ₹61,637 crore, accounting for more than 10% of the company’s overall loan assets.
The expansion allows REC to serve a broader range of infrastructure financing requirements beyond its traditional power-sector business.
Net NPA at 0.11% as Stage II Loan Assets Decline
REC reported a net non-performing asset (NPA) ratio of 0.11% as of September 30, 2026, highlighting its continued focus on asset quality and loan recovery.
During the quarter, the company resolved a Stage III asset worth ₹4.16 crore. Its Stage II loan assets declined by 80% year-on-year to ₹3,235 crore as of September 30, 2026.
According to the company, focused recovery measures and effective monitoring contributed to the reduction in Stage II assets.
REC Maintains Strong Capital Adequacy
REC’s capital-to-risk-weighted assets ratio (CRAR) stood at 24.04% as of September 30, 2026, while its Common Equity Tier 1 (CET1) capital ratio was 20.91%.
Both ratios remained above the respective regulatory minimums of 15% for CRAR and 9% for CET1 capital cited by the company. This capital position provides a buffer to support future lending and business expansion.
₹3.50 Interim Dividend Declared for FY 2026-27
The REC Board declared a second interim dividend of ₹3.50 per equity share for FY 2026-27. Each share has a face value of ₹10.
The record date for determining shareholder eligibility is October 30, 2026. The dividend is scheduled to be paid on or before November 21, 2026.
The declaration continues REC’s dividend payout practice while the company pursues growth across its lending and infrastructure financing operations.
REC Issues ₹500 Crore in Tokenised Corporate Bonds
REC also reported progress in financial market innovation during the quarter. The company issued a ₹500 crore pilot tranche of tokenised corporate bonds under the SEBI-regulated sandbox framework.
The issue attracted investor interest, with book building reaching ₹796 crore. The development represents a step in REC’s adoption of emerging financial market technologies.
During the quarter, REC received the Data Center Champion Award 2026 and Silver Awards for Best Corporate Bond Issuer and Best PSU Issuer. These recognitions highlighted the company’s work in infrastructure financing and debt capital markets.
REC Expands Its Role in India’s Infrastructure Financing
REC’s latest results reflect continued expansion in its loan book, renewable energy portfolio and non-power infrastructure financing activities. The company is also maintaining capital adequacy levels above the regulatory minimums and reporting improvements in selected asset-quality indicators.
Although consolidated quarterly profit declined year-on-year, REC’s half-year earnings, loan-book expansion and growing renewable energy portfolio demonstrate the scale of its financing operations as it continues to support India’s power, clean energy and infrastructure development priorities.
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