REC (RECLTD) Q4 24/25 earnings summary

Executive summary

• Achieved record annual profit of ₹15,713 crore in FY25, up 12% year-over-year, with net worth rising 13% to ₹78,000 crore and total income up 20% to ₹56,000 crore.

• Loan book grew 11% year-over-year to ₹5.67 lakh crore, with a target of ₹10 lakh crore by 2030 and a projected annual growth rate of 12%.

• Net credit-impaired assets reduced to 0.38% from 0.86% year-over-year, reflecting improved asset quality.

• Final dividend for FY25 recommended at ₹2.60 per share, with total dividend at ₹18 per share.

• Approved a 50:50 joint venture with BHEL for renewable energy and infrastructure projects.

Financial highlights

• Net interest income rose 27% to nearly ₹20,000 crore.

• Net worth increased 13% to ₹77,638 crore.

• Earnings per share for FY25 was ₹59.55; book value per share reached ₹295.

• Capital adequacy ratio at 26%, with Tier 1 at 24%.

• Debt-equity ratio at 6.29x; interest coverage ratio at 1.58x.

Outlook and guidance

• Disbursement guidance for FY26 is ₹2-2.1 lakh crore, with expected AUM growth of 12% (plus or minus 1-2%).

• Continued focus on green infrastructure financing, with 63% YoY growth in renewables disbursements and 49% growth in renewables loan book.

• Targeting ₹3 lakh crore in renewable energy disbursements by 2030 from a current loan book of ₹58,000 crore.

• Committed to net zero in Scope 1 & 2 emissions and ongoing ESG initiatives.

• Confident in maintaining NIM in the 3.5%-3.75% range and spread between 2.75%-3%.