REC shares extended gains for the second consecutive session on Monday, 27 July, rising nearly 2% to an intraday high of ₹368.85. The stock opened at ₹358.85 against its previous close of ₹361.45, building on the previous session's 0.82% gain. According to reports from Mint, the positive momentum was driven by healthy Q1FY27 financial results that demonstrated the company's strong operational performance. The stock continues to attract investor attention with its steady financial performance and positive market sentiment.
On 24 July, REC reported robust quarterly results that exceeded market expectations. Net profit surged 23% quarter-on-quarter to ₹4,149 crore for Q1FY27, while net interest income increased 5% QoQ to ₹5,212 crore. As reported by Mint, the company's Net Interest Margin (NIM) stood at 3.34%, reflecting the strength of its lending portfolio and disciplined financial management. However, Angel One reports that consolidated net profit declined 6.1% year-on-year to ₹4,192.8 crore, while net interest income fell 3.6% YoY to ₹5,453 crore during the quarter. The company delivered an annualised EPS of ₹63.04 per share for the quarter ended June 30, 2026, underscoring its robust earnings performance.
REC's renewable energy portfolio continued to witness robust traction, growing to ₹78,596 crore, constituting 13.32% of the overall loan composition. The infrastructure and logistic portfolio has grown to ₹59,289 crore, which is over 10% of the overall loan assets. This strategic diversification reinforces REC's commitment to fostering sustainable infrastructure development and accelerating the growth of green energy in India. The company's standalone loan book reached ₹5.90 lakh crore as of 30 June 2026, marking the largest loan portfolio among any CPSU-NBFC in India, demonstrating the strength and stability of its lending operations.
REC has demonstrated consistent growth in its annual financial performance over the past five fiscal years. The company's revenue has steadily increased from ₹39,269.05 crore in 2022 to ₹59,584.16 crore in 2026, representing a substantial 51.72% increase over this period with a year-on-year growth of 5.71% from 2025 to 2026. Net profit has shown robust growth, climbing from ₹10,047.51 crore in 2022 to ₹16,308.17 crore in 2026, an increase of 62.31%. Earnings Per Share (EPS) followed a similar trajectory, rising from ₹50.82 in 2022 to ₹61.81 in 2026. The company's Net Worth has grown by 15% on Y-o-Y basis to ₹91,836 crore as on June 30, 2026, reflecting the sustained growth in profits.
Driven by sustained initiatives to improve asset quality, the Company has reduced its Stage-3 loan asset to the total loan portfolio ratio to near-zero levels at 0.11%. The capital adequacy ratio (CRAR) stood at 23.06% by the end of the June quarter, significantly above the regulatory minimum of 15% mandated by the RBI. The strengthening fundamentals of the Indian power sector have contributed to improved financial position of power utilities, resulting in stronger overall credit profiles and consequently lower provisioning requirements. Reflecting its customer-centric approach, REC proactively shared these benefits with borrowers by rationalizing lending rates resulting in yield of 9.55% in Q1-FY 2026-27.
REC has maintained its dividend-paying track record with the first interim dividend of ₹4.25 per share declared for FY27 on 24 July. According to Mint, the record date for this interim dividend is Friday, 31 July 2026, with payment scheduled on or before 23 August 2026. The company was recognized with the 'NBFC of the Year' Award at the third Annual Bharat NBFC & FinTech Summit & Awards 2026 and the 'AI & GenAI Adoption Excellence Award' at the second Bharat PSU Manthan & Excellence Awards 2026, underscoring its strong business performance, digital innovation, and leadership in leveraging advanced technologies to drive operational excellence and enhance customer experience.
