RECLTDNSEREC Limited· Financial InstitutionHighNeutral
Announced Thu, 24 Jul · 15:36 IST

REC Limited has submitted to the Exchange, the financial results for the period ended Jun 30, 2025.

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RECLTD · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

REC Limited reported its Q1 FY26 results (quarter ended June 30, 2025) with standalone total income of ₹14,733.81 crore, up about 13% from ₹13,037.06 crore in Q1 FY25. Net profit after tax rose to ₹4,451.02 crore from ₹3,442.45 crore, a growth of roughly 29% year-on-year, lifting EPS to ₹16.90 from ₹13.07. Profit before tax grew about 30.5% to ₹5,646.90 crore, supported by a net ECL reversal of ₹616.60 crore. Asset quality improved sharply with Gross NPA at 1.05% (vs 2.61%) and Net NPA at 0.24% (vs 0.82%); CRAR stood at 23.98%. The Board declared a 1st interim dividend of ₹4.60 per share (record date August 1, 2025) and proposed a final dividend of ₹2.60 per share for FY25 (subject to AGM approval). One stressed asset, TRN Energy (₹1,504 crore), was restructured under the RBI framework with ₹392 crore written off. The statutory auditors issued a clean limited review report with no qualifications.

Likely market impact

Strong profit growth and improving asset quality are positive signals for shareholders, reinforced by a healthy interim dividend. The ECL reversal boosted earnings this quarter, so the underlying core profit trajectory should be watched in coming quarters.