REC Limited, the Maharatna public sector lender to the power sector, said its loan book grew to Rs 6.17 lakh crore at 30 September 2026, a 5% rise over the previous quarter. Its renewable energy portfolio reached Rs 86,660 crore, up 27% year on year. The figures came with the unaudited results for the quarter and half year ended 30 September 2026, which the Board approved on 26 October 2026. The Board also declared a second interim dividend of Rs 3.50 per share for 2026-27.
Growth in the loan book
REC reported growth in assets under management (AUM) of Rs 26,537 crore in the second quarter of FY27. The company describes itself as the largest standalone financier in the power sector. It reported disbursements of Rs 79,207 crore in the first half of FY27, which it says is the highest among its peers in the power sector.
The company linked the growth to the country’s power demand and to its technology-driven credit assessment. It said India’s peak power demand reached a new high in FY27, and that the Ministry of Power’s continued efforts have improved the financial health of power utilities, which is reflected in lower credit risk premiums across the sector. REC says it has passed these benefits on to borrowers in line with the market while keeping a net interest margin (NIM) of 3.22% for the first half of the year.
For the half year ended 30 September 2026, REC recorded a profit after tax of about Rs 7,540 crore, which translates into an annualised earnings per share of Rs 57.27. Net worth rose 14% year on year to Rs 94,325 crore.
Renewable energy and new sectors
The renewable energy portfolio of Rs 86,660 crore is about 14% of the Rs 6.17 lakh crore loan book. The company reported a portfolio growth of Rs 8,064 crore during the quarter, which means the portfolio stood at about Rs 78,600 crore at the end of June 2026. In its release, REC calls the portfolio one of the largest in the country and links it to the clean energy transition.
REC has also expanded beyond power. Its newly entered non-power infrastructure and logistics portfolio has increased to Rs 61,637 crore, which is over 10% of the overall loan assets. The company presents this as a step toward becoming a one-stop financier for infrastructure.
Asset quality and capital
REC reported net non-performing assets (NPAs) of 0.11% at the end of September 2026. During the quarter it resolved a Stage III asset of Rs 4.16 crore. Stage II loan assets fell by 80% from a year earlier to Rs 3,235 crore, which the company attributes to focused recovery efforts and monitoring.
The capital adequacy ratio (CRAR) stood at 24.04% and Common Equity Tier I capital at 20.91%, against the Reserve Bank of India’s minimum requirements of 15% and 9%. The company says this gives it ample capacity to support future business growth.
Funding and the tokenised bond
The filing also reports the funds raised through non-convertible debentures (NCDs) during the quarter. REC raised a total of Rs 19,267 crore through seven private placements between 17 July and 16 September 2026, and states that the money was used for the purpose set out in the offer documents, with no deviation.
REC also said it was the first issuer of a pilot tokenised corporate bond under the regulatory sandbox framework of the Securities and Exchange Board of India (SEBI). The issue size was Rs 500 crore and it drew bids worth Rs 796 crore in book building. During the quarter the company also received the Data Center Champion Award 2026 and Silver Awards for Best Corporate Bond Issuer and Best PSU Issuer.
Dividend and review
The Board declared the second interim dividend of Rs 3.50 per equity share of face value Rs 10 for 2026-27. The record date is Friday, 30 October 2026, and the dividend will be paid on or before 21 November 2026. Dividend income is taxable in the hands of shareholders under the Income Tax Act, 2025, and REC will deduct tax at source. Under the amended listing regulations, the dividend will be paid only through electronic mode, so shareholders are asked to update their bank details.
The results were reviewed by the statutory auditors, G.S. Mathur & Co. and S.K. Mehta & Co., and the review reports are enclosed with the filing. The company filed both standalone and consolidated results; the consolidated statement covers REC and one subsidiary. The Board meeting was held on 26 October 2026, and the results were prepared under Indian Accounting Standard 34 and the Reserve Bank of India guidelines for non-banking finance companies.
What it means for India’s clean-energy sector
REC is one of the main sources of long-term funds for power and renewable projects, so the growth of its renewable book is a useful indicator of financing flowing to the sector. A renewable portfolio that grew by Rs 8,064 crore in a single quarter shows continued lending to solar, wind and related projects. The low net NPA and strong capital ratios suggest the lender has room to keep expanding its loan book, which matters for large clean-energy and grid projects that depend on long-tenure debt.
Official references
- REC Limited, Outcome of Board Meeting held on 26 October 2026, with unaudited financial results, limited review reports and press release (NSE): https://nsearchives.nseindia.com/corporate/RECLTD_26102026164052_Signed_Outcome_of_Board_Meeting_261026.pdf
Leave a Comment