REC net profit rises 9% to Rs 4,414.93 crore in Q2

New Delhi: State-owned REC Limited on Friday posted an over 9 percent year-on-year increase in net profit to Rs 4,414.93 crore in September quarter, on higher income.

It had clocked a net profit of Rs 4,037.72 crore in the second quarter of preceding 2024-25 financial year, REC Ltd said in an exchange filing.

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In the latest July-September period, the company registered a 10.62 percent rise in total revenues to Rs 15,162.38 crore from Rs 13,706.31 crore in the year-ago period.

Interest income rose to Rs 14,589.97 crore from Rs 13,484.82 crore in Q2 FY25.

REC, under the Ministry of Power, is a Non-Banking Finance Company (NBFC), which provides long-term loans and other financing products to states, Centre and private companies for creation of infrastructure assets in the country.

According to a company statement, on a standalone basis, its loan disbursements increased to Rs 1,15,470 crore in first half of the fiscal from Rs 90,955 crore, up by 27 percent.

During Q2 FY26, loan sanctions have increased by 97 percent to Rs 1,49,832 crore against Rs 76,200 crore in corresponding quarter of previous fiscal.

Owing to growth in all the verticals, it stated that the REC is able to maintain its spreads at 2.89 percent and NIM (net interest margin) at 3.64 percent, resulting in a robust half yearly profit after tax of Rs 8,877 crore.

As a result, the annualised earnings per share (EPS) for the period ended September 30, 2025 accelerated by 19 percent to Rs 67.24 per share as against Rs 56.56 per share as at September 30, 2024.

The loan book has maintained its growth trajectory to reach Rs 5.82 lakh crore as against Rs 5.46 lakh crore as on September 30, 2024.

The net credit-impaired assets as on September 30, 2025 have reduced to 0.24 percent from 0.88 percent as on September 30, 2024 with provision coverage ratio of 77.06 percent on NPA assets, as on September 30, 2025.

Aided by growth in profits, the net worth has grown to Rs 82,739 crore as on September 30, 2025.

Continuing with the tradition to reward its shareholders, the board of directors of the company has declared a second interim dividend of Rs 4.60 per equity share (on face value of Rs 10 each). With this the total interim dividend for the financial year 2025-26 reached Rs 9.20.

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