REC (RECLTD) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly net profit of ₹4,451 crore for Q1 FY26, up 29% year-over-year, with record disbursements and total income of ₹14,734 crore, and net interest income rising 17% to ₹5,247 crore.

• Loan book expanded 10% year-over-year to ₹5.85 lakh crore, with net worth increasing to ₹79,688 crore and strong growth in renewables and infrastructure.

• Asset quality improved with gross NPA at 1.05%, net NPA at 0.24%, and no new NPAs added; one major stressed asset resolved.

• Board approved an interim dividend of ₹4.60 per share for Q1 FY26, with payment by August 21, 2025.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board.

Financial highlights

• Total income for Q1 FY26 was ₹14,734 crore (standalone) and ₹14,823.98 crore (consolidated), both up year-over-year.

• Net profit after tax: ₹4,451.02 crore (standalone) and ₹4,465.71 crore (consolidated), both up year-over-year.

• Net interest income grew 17% year-over-year to ₹5,247 crore.

• Book value per share as of June 30, 2025, was ₹302.60; annualized EPS for Q1 was ₹67.60.

• Capital adequacy ratio stood at 23.98%, well above the 15% regulatory requirement.

Outlook and guidance

• Management targets 12% loan growth for FY26, with confidence in maintaining spreads and NIMs at current levels.

• NIM expected to remain in the 3.5%-3.75% range, and spreads between 2.75%-3%.

• Focus remains on quality growth, aiming for net-zero NPA by year-end.

• Interim dividend declared for FY 2025-26; final dividend for FY 2024-25 of ₹2.60 per share subject to AGM approval.

• Committed to net zero in Scope 1 & 2 emissions and 100% green power for corporate office by 2025.