REC Limited Q2 FY26 Investor Update: Strong Growth and Dividend Declaration

REC Limited has delivered a robust financial performance for Q2 FY26, showcasing significant year-on-year growth. Financial and Operational Highlights Net profit saw an over 9% increase, reaching ₹4,414.93 crore, up from ₹4,037.72 crore in Q2 FY25. This was supported by a 10.62% rise in total revenues to ₹15,162.38 crore. The Half-Yearly Profit After Tax (PAT) stood at a strong ₹8,877 crore. Key metrics remained healthy, with spreads at 2.89% and Net Interest Margin (NIM) at 3.64%. Annualised Earnings Per Share (EPS) accelerated by 19% to ₹67.24 per share, reflecting the increased profitability. Operationally, standalone sanctions nearly doubled, surging by 97% to ₹1,49,832 crore. The loan book maintained its growth trajectory at ₹5.82 lakh crore. Asset Quality and Net Worth A major highlight is the substantial improvement in asset quality: Net Credit-Impaired Assets plummeted to 0.24% as of September 30, 2025, down from 0.88% a year prior. The Provision Coverage Ratio (PCR) on NPA assets is strong at 77.06%. Aided by profit growth, the net worth expanded to ₹82,739 crore. Dividend and Corporate Action The Board declared a second interim dividend of ₹4.60 per equity share (face value ₹10). The record date is October 27, 2025. Additionally, the wholly owned subsidiary, RECPDCL, completed the strategic sale and transfer of two project-specific subsidiaries, realizing a total consideration of ₹18.33 crore (including taxes/reimbursements) from successful competitive bidding. This performance underscores REC's sustained operational excellence and financial stability in the infrastructure financing sector.