REC (RECLTD) Q2 25/26 earnings summary

Executive summary

• Achieved highest ever half-year profit of INR 8,877 crore, up 19% year-over-year, and record disbursements of INR 1,11,547 crore, a 27% increase.

• Loan book reached INR 5.82 lakh crore, up 7% year-over-year, with net credit impaired assets reduced to 0.24%.

• Asset quality improved significantly, with gross NPA at 1.06% and net NPA at 0.24%; stage two assets reduced by 52% due to major prepayments.

• Board approved a second interim dividend of INR 4.60 per share, totaling INR 9.20 per share for H1 FY26.

• Maintained highest domestic credit rating (AAA) and strong international ratings (Baa3, BBB-).

Financial highlights

• Total income for H1 FY26 rose to INR 29,828 crore, up 12% year-over-year.

• Net interest income increased to INR 10,608 crore, up 15% year-over-year.

• Net worth increased 14% year-over-year to INR 82,739 crore.

• Yield on loan assets was 10.06%, cost of funds at 7.17%, and net interest margin at 3.64%.

• Return on net worth improved to 22.14%; interest coverage ratio at 1.62x.

Outlook and guidance

• Confident of achieving 11%-12% loan growth for FY26, even after factoring in large prepayments.

• On track to reach INR 10 lakh crore loan book by 2030, with renewables expected to contribute 30%.

• Committed to Net Zero in Scope 1 & 2 emissions by 2035; 100% green power for corporate office and 93% EV/hybrid office fleet conversion achieved.

• Anticipates continued strong demand in power, renewables, and infrastructure sectors.

• No material deviations in the utilization of funds raised; all proceeds have been fully utilized as per stated objectives.