REC Ltd. shares ended 0.82% higher on Friday at ₹361.45 per share, up ₹2.95 from the previous close of ₹358.50 on the BSE, according to latest reports from ET Now. The earnings announcement was made after market closing on Friday, with the stock showing mixed performance over different time periods. REC shares have risen 1.66% in the last one week but fallen 0.73% in the last one month. Year-to-date performance shows shares down 1.82%, while they are down 10.84% over the last one year, reflecting the company's recent quarterly performance challenges.
For the first quarter of fiscal 2027, REC reported a net profit of ₹4,192.76 crore, down 6% from ₹4,465.71 crore in the corresponding quarter last year, as reported by ET Now. Total income of the company decreased to ₹14,469.49 crore in the reporting quarter from ₹14,823.98 crore recorded in the same period a year ago. Net interest income (NII) declined 4% YoY to ₹5,439 crore in Q1 FY27, compared with ₹5,646 crore in Q1 FY26. The quarterly results show continued pressure on the company's earnings, with interest income on loan assets declining to ₹13,888.18 crore in the reporting quarter from ₹14,271.47 crore in the same period a year ago. Despite the challenging operating environment, REC sustained a healthy NIM of 3.34% in the reporting quarter, reflecting the strength of its lending portfolio and disciplined financial management. The company delivered an annualised EPS of ₹63.04 per share for the quarter ended June 30, 2026, underscoring its robust earnings performance.
The company demonstrated significant improvement in asset quality, with sustained efforts to improve asset quality helping reduce its Stage-3 loan asset ratio to 0.11%, which it described as near-zero levels, according to ET Now. REC's diversified portfolio showed continued expansion, with its renewable energy loan portfolio growing to ₹78,596 crore, accounting for 13.32% of its overall loan book, reflecting continued growth in financing for green energy projects. The infrastructure and logistics portfolio expanded to ₹59,289 crore, representing more than 10% of total loan assets. The company attributed these improvements to stronger fundamentals in the Indian power sector, leading to better credit profiles and lower provisioning requirements. REC's standalone loan book stood at ₹5.90 lakh crore as on June 30, 2026, which is the largest for any CPSU-NBFC in India, demonstrating the strength and stability of its lending operation.
The company's board approved the payment of a first interim dividend of ₹4.25 per equity share for fiscal year 2026-27, with Friday, July 31, 2026, fixed as the record date for determining shareholder eligibility, according to ET Now. Eligible shareholders whose names appear in the company's records as of the record date will receive the interim dividend on or before August 23, 2026. Additionally, the board fixed August 14, 2026 as the record date for reckoning the eligibility of shareholders for the payment of the final dividend of ₹1.55 per equity share for the financial year 2025-26, with the final dividend to be paid on or before September 24, 2026. The company noted that the final dividend will be paid subject to shareholder approval at the annual general meeting. In line with its consistent dividend distribution track record and commitment to enhancing shareholder returns, the Board of Directors declared this interim dividend, demonstrating management's confidence in the business model despite operational headwinds.
REC maintained a robust financial position with its capital adequacy ratio (CRAR) standing at 23.06% as of June 30, 2026, well above the Reserve Bank of India's minimum regulatory requirement of 15%, indicating capacity to support future business growth, as reported by ET Now. Aided by growth in profits, the net worth has grown by 15% on YoY basis to around ₹91,836 crore as on June 30, 2026. The company's lending strategy reflected market conditions, with lending yield at 9.55% during the June quarter as it passed on benefits of improved power sector fundamentals to borrowers through rationalised lending rates. The company's active dividend policy demonstrates management's commitment to returning value to shareholders even during challenging quarters, with the enhanced dividend amount reflecting confidence in the business model despite operational headwinds.
