REC Loan Book Surges to Rs 6.17 Lakh Crore; H1 Profit Hits Rs 7,541 Crore
REC Limited reports a massive loan book of Rs 6.17 lakh crore and H1 PAT of Rs 7,541 crore, driven by power sector demand and renewable energy growth.
REC Limited, the Maharatna Central Public Sector Enterprise under the Ministry of Power, has reported a significant expansion in its financial footprint. The company's REC loan book growth has pushed its total assets under management (AUM) to a staggering Rs 6.17 lakh crore as of September 30, 2026, following a sequential increase of Rs 26,537 crore during the second quarter of FY27.
Strong Financial Performance and Profitability
The company's board of directors approved financial results that highlight a period of robust growth. For the first half of the financial year (H1 FY27), REC Limited recorded a Profit After Tax (PAT) of Rs 7,541 crore. This performance has translated into an annualised earnings per share of Rs 57.27.
In terms of liquidity and disbursements, the NBFC was highly active, disbursing Rs 53,541 crore in the second quarter alone. This brought the total aggregate disbursements for the first six months of the financial year to Rs 79,207 crore.
Driving the Green Transition
A key highlight of the quarter was the aggressive expansion of REC's renewable energy portfolio. The segment grew by Rs 8,064 crore during Q2, reaching a total of Rs 86,660 crore. This represents a substantial 27 per cent increase compared to the previous year, signaling the company's pivot toward sustainable energy financing.
Beyond the power sector, REC is diversifying its reach. Financing for non-power infrastructure and logistics has now reached Rs 61,637 crore, accounting for more than 10 per cent of the company's total loan assets.
Operational Insights and Market Dynamics
REC attributed this growth to the record-breaking peak power demand seen in India during FY27. The company noted that the power sector's ability to handle emerging challenges, combined with REC's focus on customer-centric solutions and technology-driven credit assessments, fueled the AUM surge.
The company also highlighted the improving financial health of power utilities, thanks to targeted efforts by the Ministry of Power. This improvement has led to lower credit risk premiums. REC has passed these benefits on to the sector while maintaining a healthy Net Interest Margin (NIM) of 3.22% during the first half of the year.
Asset Quality and Shareholder Rewards
REC continues to maintain a "pristine" asset quality. Key metrics include:
- Net NPA: Reduced to 0.11% as of September 30, 2026.
- Stage-II Loan Assets: Slashed by 80% to Rs 3,235 crore compared to the previous year, driven by effective monitoring and recovery.
- Net Worth: Rose 14 per cent year-on-year to Rs 94,325 crore.
- Capital Adequacy: The Capital to Risk-Weighted Assets Ratio stood at 24.04%, with a Common Equity Tier 1 ratio of 20.91%.
In a move to reward its shareholders, the board has declared a second interim dividend of Rs 3.50 per equity share (face value Rs 10) for the financial year 2026-27.
Innovation in Financing
Staying ahead of the curve in financial technology, REC issued a pilot tokenised corporate bond worth Rs 500 crore. This was done under the SEBI regulatory sandbox framework, and the initiative recorded an aggregate book of Rs 796 crore.