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REC Q2 FY27 results: net profit down 21.2% to ₹3,478 crore, revenue down 1.0%
REC Limited reported consolidated Q2 FY27 revenue of ₹15,000 crore, down 1.0% from Q2 FY26, while net profit fell 21.2% to ₹3,478 crore and basic EPS declined to ₹13.21. Against Q1 FY27, revenue rose 3.9%, but profit was lower by 17.1% as total expenses increased 15.4%.
Key points
- Consolidated Q2 FY27 revenue was ₹15,000 crore, down 1.0% from ₹15,153 crore in Q2 FY26 but up 3.9% from ₹14,435 crore in Q1 FY27.
- Net profit was ₹3,478 crore, down 21.2% year on year and 17.1% sequentially, while basic EPS fell to ₹13.21 from ₹16.77 and ₹15.92.
- Total expenses rose 10.5% year on year to ₹10,619 crore, including finance costs of ₹9,522 crore and other expenses of ₹657.16 crore.
- For H1 FY27, revenue was ₹29,435 crore and net profit was ₹7,670 crore, down 1.5% and 13.6% from H1 FY26.
- The board declared a second interim dividend of ₹3.50 per equity share, with 30 October 2026 as the record date.
How did REC perform in Q2 FY27?
REC Limited’s consolidated Q2 FY27 revenue was ₹15,000 crore, down 1.0% from ₹15,153 crore in Q2 FY26 and up 3.9% from ₹14,435 crore in Q1 FY27. Total income was ₹15,010 crore in the quarter. EBITDA and EBITDA margin were not reported in the available results.
Profit before tax was ₹4,391 crore, down 20.9% from ₹5,549 crore a year ago and 16.6% from ₹5,268 crore in the previous quarter. Net profit was ₹3,478 crore, down 21.2% year on year and 17.1% sequentially. Basic EPS was ₹13.21, compared with ₹16.77 and ₹15.92, while PAT margin fell to 23.2% from 29.1% and 29.0%.
On a standalone basis, revenue was ₹14,727.69 crore, down 2.4%, and PAT attributable to owners was ₹3,391.18 crore, compared with profit before tax of ₹4,425.86 crore.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 15,000 | 14,435 | 15,153 | −1.0% | +3.9% |
| Other income | 10.03 | 34.57 | 9.71 | +3.3% | −71.0% |
| Total expenses | 10,619 | 9,201 | 9,613 | +10.5% | +15.4% |
| Profit before tax | 4,391 | 5,268 | 5,549 | −20.9% | −16.6% |
| Tax | 913.41 | 1,076 | 1,134 | −19.5% | −15.1% |
| Net profit | 3,478 | 4,193 | 4,415 | −21.2% | −17.1% |
| EPS (₹) | 13.21 | 15.92 | 16.77 | −21.2% | −17.0% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in REC's costs and profit?
Total expenses rose 10.5% to ₹10,619 crore from ₹9,613 crore in Q2 FY26, exceeding the 1.0% decline in revenue. Finance costs increased 4.3% by ₹391.37 crore to ₹9,522 crore, while other expenses rose 213.1% by ₹447.27 crore to ₹657.16 crore.
Employee cost increased 14.7% by ₹9.80 crore to ₹76.50 crore, while depreciation was ₹6.74 crore, up ₹0.08 crore. Other income was ₹10.03 crore, up ₹0.32 crore from ₹9.71 crore. There was no exceptional item in either quarter.
Tax expense fell 19.5% by ₹220.60 crore to ₹913.41 crore from ₹1,134.01 crore, but the lower tax expense did not offset the increase in total expenses. Against Q1 FY27, finance costs were higher by ₹774.55 crore and other expenses were lower by ₹376.19 crore.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Employee cost | 76.50 | 66.70 | +9.80 | +14.7% |
| Finance costs | 9,522 | 9,131 | +391.37 | +4.3% |
| Depreciation | 6.74 | 6.66 | +0.08 | +1.2% |
| Other expenses | 657.16 | 209.89 | +447.27 | +213.1% |
| Total expenses | 10,619 | 9,613 | +1,006 | +10.5% |
| Other income | 10.03 | 9.71 | +0.32 | +3.3% |
| Tax | 913.41 | 1,134 | −220.60 | −19.5% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In the first half of FY27, REC reported revenue of ₹29,435 crore, down 1.5% from ₹29,890 crore in H1 FY26. Total income was ₹29,480 crore, down 1.7%, while profit before tax fell 13.9% to ₹9,659 crore.
Net profit for H1 FY27 was ₹7,670 crore, down 13.6% from ₹8,881 crore in H1 FY26. Basic EPS declined to ₹29.13 from ₹33.73, while PAT margin was 23.2% in Q2 FY27, compared with 29.1% in Q2 FY26.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 29,435 | 29,890 | −1.5% |
| Profit before tax | 9,659 | 11,215 | −13.9% |
| Net profit | 7,670 | 8,881 | −13.6% |
| EPS (₹) | 29.13 | 33.73 | −13.6% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
Total assets increased to ₹674,188 crore as of 30 September 2026 from ₹640,158 crore as of 31 March 2026. Total equity rose to ₹95,219 crore from ₹85,054 crore, while cash and cash equivalents increased to ₹458.90 crore from ₹293.39 crore. Borrowings were not reported.
H1 FY27 operating cash flow was an outflow of ₹17,410.50 crore, compared with an outflow of ₹3,005.27 crore in H1 FY26. Investing cash flow was ₹65.27 crore against an outflow of ₹1,468.44 crore, while financing cash flow was ₹17,852.40 crore against ₹9,915.65 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 6,74,188 | 6,40,158 |
| Total equity | 95,219 | 85,054 |
| Cash and equivalents | 458.90 | 293.39 |
| Inventories | 0 | 0 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | −17,410 | −3,005 |
| Cash from investing | 65.27 | −1,468 |
| Cash from financing | 17,852 | 9,916 |
| Capital expenditure | 24.04 | 35.73 |
Source: Company's results filing (XBRL).
How has REC done over the last 8 quarters?
Profit peaked at ₹4,466 crore in Q1 FY26 and bottomed at ₹3,375 crore in Q4 FY26. It rose to ₹4,193 crore in Q1 FY27 before declining to ₹3,478 crore in Q2 FY27. EBITDA margins were not available for the quarterly trend.
What else did the company announce?
The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, following review by the Audit Committee and limited review by the statutory auditors. It also declared a second interim dividend of ₹3.50 per equity share of ₹10 each for FY27.
The record date for the interim dividend is 30 October 2026, and payment is to be made on or before 21 November 2026. The filing stated that dividend payments would be made exclusively through electronic mode.
What did REC's management say?
Management identified competition, funding costs, the prepayment cycle, smart-meter consumer resistance and forex volatility as risks. It also said the PFC merger remained pending Cabinet approval and that the merged entity would remain government-controlled.
How did REC shares react?
REC’s shares were down 2.0% after five minutes, 2.5% after 15 minutes and 2.3% after 30 minutes following the after-market filing. From the previous close of ₹296.45, the stock closed 3.4% lower on the reaction day.
By the next day’s close, the stock was down 2.2% from its pre-results close, and by the fifth session it was down 4.4%. The Financial Institution sector median moved 1.0% lower on the reaction day and was up 0.1% after one day and 0.4% after five days, leaving REC 4.8 percentage points behind the sector after five sessions.
Earlier reaction-day moves were mixed: REC rose 2.2% on 24 July 2026, fell 1.1% on 28 April 2026 and fell 3.0% on 29 January 2026. It was unchanged on 17 October 2025, fell 1.3% on 24 July 2025, rose 3.4% on 3 January 2025, and rose 2.1% and 3.0% on 26 October and 27 July 2024, respectively.
| After the filing | Stock | Financial Institution median |
|---|---|---|
| 5 minutes | −2.0% | |
| 15 minutes | −2.5% | |
| 30 minutes | −2.3% | |
| Reaction day | −3.4% | −1.0% |
| Next day | −2.2% | +0.1% |
| 5 days | −4.4% | +0.4% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 24 July 2026 | +2.2% |
| 28 April 2026 | −1.1% |
| 29 January 2026 | −3.0% |
| 17 October 2025 | +0.0% |
| 24 July 2025 | −1.3% |
| 3 January 2025 | +3.4% |
| 26 October 2024 | +2.1% |
| 27 July 2024 | +3.0% |
Source: MarketPing price-reaction measurement.
Quick answers
What was REC's revenue in Q2 FY27?
Revenue from operations was ₹15,000 crore, down 1.0% from ₹15,153 crore in Q2 FY26 (consolidated).
Did REC make a profit in Q2 FY27?
Yes. Net profit was ₹3,478 crore, against a net profit of ₹4,415 crore in Q2 FY26.
What was REC's EPS in Q2 FY27?
Basic earnings per share were ₹13.21, against ₹16.77 in Q2 FY26.
How did REC shares react to the Q2 FY27 results?
On the reaction day the stock moved −3.4% from the previous close; the median Financial Institution stock moved −1.0%.
When did REC announce its Q2 FY27 results?
On 26 October 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for Financial Results For The Quarter And Half Year Ended September 30, 2026 And 2Nd Interim Dividend For The Financial Year 2026-27, If Any. (BSE, 21 October 2026) · PDF
- Outcome Of Board Meeting Held On October 26, 2026. (BSE, 26 October 2026) · PDF
- The earnings call (4 November 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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