On April 28, 2026, in New Delhi, REC Limited announced its financial achievements for the fiscal year ending March 31, 2026, highlighting a period of remarkable profitability and strategic growth. The company’s financial disclosures reveal a record-breaking annual net profit of ₹16,282 crore, the highest in its history, alongside a significant dividend payout of ₹18.55 per share.
This financial milestone coincides with a pivotal era for the Indian power sector, which, bolstered by government initiatives, has seen formerly unprofitable power distribution companies emerge into profitability. This sector-wide enhancement has contributed to a more stable fiscal environment and improved asset quality, thereby lowering the risk premiums associated with investments in this area. REC Limited has capitalized on these developments by lowering the interest rates it charges to its clients, thereby extending the benefits of reduced costs.
The company’s commitment to sustainable operations is evident from its nearly non-existent Net Stage-3 loans, reported at just 0.12%, and a 75% reduction in Stage-2 loans year-over-year. REC’s loan portfolio expanded by approximately ₹17,000 crore over the year, reaching a record ₹5.84 lakh crore. The portfolio dedicated to renewable energy projects also grew by 30%, reaching ₹75,347 crore, aligning with national objectives for cleaner energy.
Despite global economic pressures and geopolitical tensions, REC maintained robust operational and financial growth. The year saw a 21% increase in sanctions, reaching ₹4,09,097 crore, and a 10% rise in disbursements to ₹2,11,189 crore. The company’s net worth as of March 31, 2026, stood at ₹84,290 crore, marking a 9% increase from the previous year. The Capital Adequacy Ratio was a strong 23.11%, indicating sufficient buffer for future expansion.
Financial indicators such as interest spread and Net Interest Margin (NIM) remained healthy at 2.62% and 3.43%, respectively, contributing to an Earnings Per Share (EPS) of ₹61.71. In keeping with its shareholder-friendly policies, REC declared a final dividend of ₹1.55 per equity share, culminating in a total annual dividend of ₹18.55 per share.
REC has consistently achieved top ratings in its Memorandum of Understanding (MoU) assessments, maintaining an ‘Excellent’ status over the past three fiscal years. It also improved its ranking among the net profit-making Central Public Sector Enterprises (CPSEs) in the Department of Public Enterprises survey, moving up to the 5th position.
The company’s focus on Environmental, Social, and Governance (ESG) principles is integral to its operations, earning it the highest NSE ESG Rating nationwide. This commitment is reflective of REC’s broader strategy to integrate sustainable practices across all facets of its business, ensuring long-term value creation. The reaffirmation of its ‘Maharatna’ status by the Department of Public Enterprises in January 2026 further underscores REC’s robust organizational health and its pivotal role in the nation’s economic framework.
