REC Ltd, a key player in India’s power finance sector, announced its Q1 FY26 results on Thursday, 24th July 2025. The company reported a strong quarter with a notable increase in both revenue and profitability.
For Q1 FY26, REC Ltd’s consolidated net profit rose 29% year-on-year to ₹4,465.7 crore, up from ₹3,460.2 crore in the same period last year. Total income stood at ₹14,824.0 crore, while total revenue from operations reached ₹14,737.5 crore, up from ₹13,078.7 crore in Q1 FY25. Sequentially, the net profit increased 3.6% from ₹4,310.0 crore reported in Q4 FY25.
Key Financial Results for REC Ltd Q1 FY26:
| Particulars | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth (%) | QoQ Growth (%) |
| Total Income (Cr) | 14,824.0 | 15,366.7 | 13,092.4 | 13.2 | -3.5 |
| Total Revenue from Operations (Cr) | 14,737.5 | 15,351.9 | 13,078.7 | 12.7 | -4.0 |
| Net Profit (Cr) | 4,465.7 | 4,310.0 | 3,460.2 | 29.0 | 3.6 |
| EPS (₹) | 17.0 | 16.2 | 13.1 | 29.3 | 4.8 |
The company attributed its strong performance to higher operational revenues, prudent cost management, and a favourable trajectory in interest income.
Important Updates from REC Ltd Latest Financial Results
Strong Profit Growth
REC Ltd posted a consolidated net profit of ₹4,465.7 crore in Q1 FY26, up 29% year-on-year. The company’s profitability was supported by robust interest income and effective cost controls.
Revenue Growth
The consolidated total income rose to ₹14,824.0 crore, while total revenue from operations grew to ₹14,737.5 crore, marking a YoY growth of 12.7%. REC continues to benefit from strong loan disbursements and steady demand for power sector financing.
Healthy Financial Position
As of June 30, 2025, REC’s consolidated net worth stood at ₹80,440.4 crore, up from ₹72,936.2 crore last year. The company maintained a debt-equity ratio of 6.3 and a total debt-to-assets ratio of 0.8. Capital Adequacy Ratio (CRAR) remained strong at 24.0%.
Improved Asset Quality
Gross and net credit-impaired asset ratios improved significantly to 1.1% and 0.2%, compared to 2.6% and 0.8% last year, reflecting REC’s better asset quality management.
Dividends
REC Ltd announced a first interim dividend of ₹4.6 per equity share for FY26, with a record date of August 1, 2025. The company also fixed August 14, 2025, as the record date for a final dividend of ₹2.6 per share for FY25, subject to shareholder approval at the upcoming AGM.
Looking Ahead
REC Ltd remains focused on strengthening its loan book, maintaining asset quality, and leveraging opportunities in the power sector. The company is poised to benefit from ongoing infrastructure development and renewable energy financing.
Investors can also keep track of the REC Ltd share price to stay updated with the company’s market performance. With its consistent growth and robust financials, REC Ltd continues to be a key player in the power sector stocks category, attracting long-term investors.
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