REC Limited in Focus as PFC Merger Advances

REC Limited is in focus after receiving no-objection letters from the National Stock Exchange (NSE) and BSE on October 19, 2026, for its proposed merger with Power Finance Corporation (PFC). The merger aims to create a large power-sector financing entity with a combined loan book exceeding ₹11 lakh crore. The transaction remains subject to the necessary regulatory and other approvals. Investor attention is also shifting towards REC’s upcoming board meeting scheduled for October 26, 2026, to consider the financial results for the quarter and half-year ended September 30, 2026, along with a possible second interim dividend for FY27. In Q1 FY27, REC reported consolidated net profit of approximately ₹4,193 crore, while its net interest margin stood at 3.34%, reflecting continued strength in its power-sector lending operations. Going forward, investors will monitor the Q2 earnings, potential dividend announcement and progress towards completing the PFC merger. The consolidation could offer opportunities for greater scale and operational efficiency, while regulatory approvals, integration plans and future lending growth will remain important factors influencing REC’s stock performance.