REC (RECLTD) Q2 25/26 earnings summary

Executive summary

• Achieved highest ever half-year profit of ₹8,877 crore in H1 FY26, up 19% year-over-year, with total income of ₹29,828 crore, up 12% year-over-year.

• Loan book expanded 7% year-over-year to ₹5.82 lakh crore, with disbursements at a record ₹1.15 lakh crore, up 27%.

• Asset quality improved, with gross NPA at 1.06% and net NPA at 0.24%.

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

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

Financial highlights

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

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

• Capital adequacy ratio stood at 23.74% (Tier-I: 21.73%, Tier-II: 2.01%).

• Net interest margin at 3.64%; yield on loan assets at 10.06%; cost of funds at 7.17%.

• Earnings per share at ₹33.71; book value per share at ₹314.21.

Outlook and guidance

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

• Targeting ₹10 lakh crore loan book by 2030, with 30% from renewables.

• 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.

• Expecting continued strong disbursement momentum, supported by a robust order book.

• Anticipate significant investments in power sector, including renewables, thermal, hydro, and transmission.