NSE: RECLTD · BSE: 532955
REC LIMITED
Lends to India's power sector and adjacent infrastructure, earning primarily through interest on a Rs 5.82 lakh crore loan book as of Q2 FY26. Operates as a Maharatna public-sector non-banking finance company (NBFC) and acts as the nodal agency for government schemes including the Revamped Distribution Sector Scheme (RDSS) and the PM Surya Ghar rooftop solar programme, where 17 lakh households were covered as of H1 FY26. The loan book spans renewables, thermal, hydro, nuclear, pump storage, battery storage and transmission & distribution; the renewable book stood at Rs 75,347 crore (13% of total) in FY26, with a stated target of 30% (~Rs 3 lakh crore) by 2030 against an overall Rs 10 lakh crore loan book target. Disbursements were a record Rs 1.15 lakh crore in H1 FY26 (+27% YoY) and Rs 2.11 lakh crore for FY26 as a whole. Profit comes from the gap between cost of funds (7.17% in H1 FY26) and the yield on its assets, with guided NIMs of 3.5–3.75% and spread of 2.75–3.5%. Capital adequacy was 23.74% against a 15% requirement and net NPA was 0.24%. The business is expanding beyond power into infrastructure and logistics under a new MoU with the Ministry of Shipping, and has an announced merger with PFC at an 88:100 share-swap ratio with appointed date April 1, 2027. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Renewable energy lending (13%), Conventional power lending, Infrastructure and logistics lending. Policy-driven PSU NBFC lending to power and infrastructure; margins set by the gap between cost of funds and on-asset yields
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 39,269 | 39,478 | 47,505 | 56,367 | 59,584 |
| EBITDA (ex other income) | 34,441 | 37,613 | 47,865 | 54,206 | 56,987 |
| margin % | 87.7 | 95.3 | 100.8 | 96.2 | 95.6 |
| Owners' profit | 0 | 11,167 | 14,145 | 15,884 | 16,308 |
| EPS, as reported (₹) | 50.82 | 42.28 | 53.59 | 60.20 | 61.81 |
| ROE % · ROCE % | 19.6 · — | 19.2 · — | 20.4 · — | 20.3 · — | 19.2 · — |
| Debt / equity (x) | — | — | — | — | — |
| Cash from operations | (3,910) | (37,360) | (57,723) | (39,101) | 5,972 |
| Capex | (22) | (18) | (34) | (81) | (75) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 13,682 | 14,272 | 15,334 | 14,737 | 15,153 | 15,018 | 14,564 | 14,435 |
| Profit before tax | 5,097 | 5,181 | 5,490 | 5,666 | 5,549 | 5,136 | 4,415 | 5,268 |
| Net profit | 4,038 | 4,076 | 4,310 | 4,466 | 4,415 | 4,052 | 3,375 | 4,193 |
| EPS (₹) | 15.33 | 15.48 | 16.24 | 16.96 | 16.77 | 15.39 | 12.69 | 15.92 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| POWER FIN CORP LTD. | 1,04,151 | 4.0 | 0.60 | — | 19.4 | — | 10.0 | 100.0 |
| INDIAN RAILWAY FIN CORP L | 97,439 | 13.6 | 1.72 | — | 12.4 | — | — | 101.1 |
| REC LIMITED ◆ | 75,442 | 4.7 | 0.89 | — | 19.2 | — | 10.9 | 97.1 |
| HSG & URBAN DEV CORPN LTD | 28,687 | 6.7 | 1.31 | — | 18.4 | — | 12.7 | 97.6 |
| INDIAN RENEWABLE ENERGY | 28,008 | 14.2 | 2.03 | — | 13.6 | — | — | 78.5 |
| IFCI LTD | 15,923 | 92.3 | 1.03 | — | 2.8 | — | 0.0 | 67.2 |
| TOURISM FINANCE CORP. OF | 7,181 | 16.4 | 7.38 | — | 4.6 | — | — | 90.1 |
| HARYANA FINANCIAL CORPORATION | 1,189 | 1145.0 | — | — | — | 4.9 | — | — |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 4.7 | 13.9 | 2 of 8 | 86% |
| P/B | 0.9 | 1.3 | 2 of 7 | 83% |
| ROE | 19.2 | 13.6 | 2 of 7 | 83% |
| EBITDA margin | 97.1 | 97.1 | 4 of 7 | 50% |
| Revenue growth | (2.0) | (0.0) | 5 of 7 | 33% |
| Profit growth | (6.1) | (1.6) | 7 of 8 | 14% |
| Market cap | 75442 | 28008 | 3 of 9 | 75% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 27 Oct 2026 · REC Q2 FY27 profit falls; Rs 3.50 interim dividend declared | compliance | minimal | — | — |
| 26 Oct 2026 · REC to discuss Q2 and H1 FY27 results on October 29, 2026 | board shareholder meetings | low | — | — |
| 26 Oct 2026 · REC Q2 profit falls; dividend declared and Power Finance merger advances | results | high | — | — |
| 26 Oct 2026 · REC sets October 30, 2026 record date for Rs 3.50 interim dividend | corporate actions | high | — | — |
| 26 Oct 2026 · REC profit falls 21%, declares Rs 3.50 interim dividend; PFC merger advances | board shareholder meetings | low | — | — |
| 23 Oct 2026 · REC incorporates three wholly owned power transmission subsidiaries | strategic transactions | medium | — | — |
| 21 Oct 2026 · REC Board to review September results and dividend | results | low | — | — |
| 19 Oct 2026 · REC gets NOC from NSE and BSE for merger with Power Finance Corp | strategic transactions | high | — | — |
| 16 Oct 2026 · REC sells Nawada Durgapur Power Transmission SPV to Shivalaya Construction | strategic transactions | high | — | — |
| 15 Oct 2026 · RBI no objection for RECs proposed merger with Power Finance Corporation | strategic transactions | critical | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.