REC Limited’s loan book and renewable energy exposure grew strongly in the September quarter, while consolidated net profit fell 21.2% year on year to Rs3,477.73 crore.
REC Limited reported a larger loan book and stronger half-year asset growth in the six months to September 30, even as quarterly profit came under pressure, according to results approved by its board on Monday. The state-backed power sector financier said its assets under management rose by Rs26,537 crore in the second quarter, lifting the total loan book to Rs6.17 lakh crore at the end of September.
The company said its renewable energy portfolio continued to expand, rising by Rs8,064 crore during the quarter to Rs86,660 crore, a gain of 27% from a year earlier. REC also pointed to rising power demand and improved operating conditions in the sector, saying the combination of higher electricity offtake and its own push to strengthen credit assessment helped drive growth.
On profitability, the picture was more mixed. ANI reported that profit after tax for the first half of FY27 was Rs7,541 crore, while other market reports said consolidated net profit for the July-September quarter fell 21.2% from a year earlier to Rs3,477.73 crore. Revenue from operations was also reported to have edged lower year on year in the quarter, even as the loan book continued to expand.
REC said its net interest margin stayed at 3.22% in the half-year, helped by lower sector risk premiums and a continued improvement in the financial health of power utilities. The company said net worth rose 14% year on year to Rs94,325 crore, while net non-performing assets fell to 0.11% as it resolved a Stage III asset during the quarter. Stage-II assets also declined sharply from a year earlier, underlining what the company described as tighter monitoring and recovery work.
The board declared a second interim dividend of Rs3.50 per equity share of face value Rs10, with a record date of October 30 and payment expected by November 21, according to company disclosures cited by market reports. REC also said it had issued a Rs500 crore pilot tokenised corporate bond under the Securities and Exchange Board of India’s regulatory sandbox, which drew bids taking the total book to Rs796 crore. Non-power infrastructure and logistics financing reached Rs61,637 crore, or just over 10% of total loan assets, while the capital to risk-weighted assets ratio stood at 24.04% and common equity tier 1 capital at 20.91%.
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