Strong loan growth, improved asset quality, and a recovery in India’s power distribution industry drove REC Limited, which has Maharatna Status and is governed by the Ministry of Power, to its highest-ever annual net profit of ₹16,282 crore for FY26.
As of March 31, 2026, the company’s loan book reached a record high of 5.84 lakh crore, an increase of around ₹17,000 crore. With a 30% year-on-year expansion to ₹75,347 crore, renewable energy financing continued to be a crucial growth driver.
With a Net Stage-3 Assets (NPA) level of 0.12% and a Stage-2 loan decline of 75% year-over-year, REC demonstrated a substantial improvement in asset quality. That was because of the sector-wide reforms implemented by the Indian government and the improved financial health of power distribution businesses, according to the corporation.
With sanctions growing by 21% to ₹4.09 lakh crore and disbursements increasing by 10% to ₹2.11 lakh crore, operational performance stayed robust. The net worth increased by 9% to ₹84,290 crore, and the capital adequacy ratio remained strong at 23.11%.
Interest spread was 2.62% and net interest margin was 3.43%, both of which were healthy margins. A rise to ₹61.71 was recorded in earnings per share.
Final dividend of ₹1.55 per share was declared by the board, bringing the total dividend for FY26 to ₹18.55 per share.
REC has maintained its status as a Maharaja and has achieved an MoU rating of “Excellent” for three years running. According to the most recent DPE report, the firm is the fifth most profitable CPSE.
Consistently prioritising environmental, social, and governance (ESG) factors and renewable financing, REC topped the NSE ESG ranking for Indian companies, further demonstrating its dedication to long-term prosperity.
Image Credit: Noventiq India
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