Stock Report

REC Limited Reports Q1 FY27 Consolidated Net Profit of ₹4,193 Crore; Total Comprehensive Income Surges to ₹7,440 Crore

Posted On : 2026-07-24 18:10:00( TIMEZONE : IST )

REC Limited (BSE: 532955, NSE: RECLTD), a Maharatna Public Sector Enterprise under the Ministry of Power, announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27).

The state-run power sector lender recorded a consolidated Net Profit After Tax (PAT) of ₹4,192.76 crore for the quarter, while Total Comprehensive Income surged sharply to ₹7,439.95 crore (up from ₹2,001.55 crore in Q1 FY26), bolstered by positive fair value changes and hedging reserves.

Consolidated Financial Summary (Q1 FY27 vs Q1 FY26)

Total Revenue from Operations: Stood at ₹14,434.92 crore, compared to ₹14,816.59 crore in Q1 FY26. Sequentially, operational revenue was ₹14,563.82 crore in Q4 FY26.

Interest Income on Loan Assets: Generated ₹13,888.18 crore (versus ₹14,271.47 crore in Q1 FY26). Total Interest Income came in at ₹14,200.47 crore.

Total Income: Reached ₹14,469.49 crore (including other income of ₹34.57 crore), compared to ₹14,823.98 crore in Q1 FY26 and ₹14,583.39 crore in Q4 FY26.

Profit Before Tax (PBT): Reported at ₹5,268.30 crore, reflecting a 19.34% sequential increase from ₹4,414.54 crore in Q4 FY26 (versus ₹5,666.41 crore in Q1 FY26).

Net Profit After Tax (PAT): Reached ₹4,192.76 crore, surging 24.23% QoQ over ₹3,375.08 crore in Q4 FY26 (versus ₹4,465.71 crore in Q1 FY26). Standalone PAT stood at ₹4,149.46 crore.

Total Comprehensive Income: Climbed to ₹7,439.95 crore for the quarter, compared to ₹2,001.55 crore in Q1 FY26 and ₹328.25 crore in Q4 FY26, driven by favorable hedging reserve adjustments of ₹3,322.62 crore.

Earnings Per Share (EPS): Basic and diluted EPS stood at ₹15.92 per share (face value ₹10 each, non-annualised), compared to ₹16.96 in Q1 FY26 and ₹12.69 in Q4 FY26.

Expenses & Impairment Breakdown

Total consolidated expenses for Q1 FY27 were contained at ₹9,201.19 crore, down 9.52% QoQ from ₹10,168.85 crore in Q4 FY26 (and ₹9,157.57 crore in Q1 FY26):

Finance Costs: Stood at ₹8,747.50 crore (down from ₹8,934.18 crore in Q1 FY26 and ₹8,930.74 crore in Q4 FY26).

Impairment on Financial Instruments: Recorded a net credit/reversal of ₹(96.58) crore (versus a provision of ₹587.84 crore in Q4 FY26 and a credit of ₹(609.79) crore in Q1 FY26).

Foreign Exchange Loss/(Gain): Net translation/transaction exchange loss stood at ₹911.29 crore (versus ₹51.47 crore in Q1 FY26).

Employee Benefits Expense: Stood at ₹74.25 crore (versus ₹63.98 crore in Q1 FY26).

Corporate Social Responsibility (CSR): Allocated ₹5.73 crore for the quarter.

Tax Provision: Total tax expense was ₹1,075.54 crore (comprising current tax of ₹1,085.38 crore and deferred tax credit of ₹(9.84) crore).

Key Financial Ratios & Asset Quality (Regulation 52(4) Compliance)

REC's balance sheet showed further strengthening in credit quality metrics, with impaired assets dropping significantly:

ASSET QUALITY METRICS

Gross Credit Impaired Ratio Net Credit Impaired Ratio +-----------------------+ +-----------------------+ | Q1 FY26 | 1.05% | | Q1 FY26 | 0.24% | | Q1 FY27 | 0.23% | | Q1 FY27 | 0.11% | +-----------------------+ +-----------------------+ (82 bps YoY Improvement) (13 bps YoY Improvement)

Standalone Key Ratios

Gross Credit Impaired Assets Ratio: Improved dramatically by 82 bps YoY to 0.23% as of June 30, 2026 (down from 1.05% as of June 30, 2025).

Net Credit Impaired Assets Ratio: Improved by 13 bps YoY to 0.11% as of June 30, 2026 (down from 0.24% as of June 30, 2025).

Capital Adequacy Ratio (CRAR): Healthy at 23.06% as of June 30, 2026 (compared to 23.98% as of June 30, 2025).

Net Worth: Rose 15.25% YoY to ₹91,836.22 crore (Standalone) and ₹92,643.52 crore (Consolidated) as of June 30, 2026.

Debt-Equity Ratio: Improved to 5.47x (Consolidated) / 5.52x (Standalone), down from 6.31x / 6.38x in Q1 FY26.

Total Debts to Total Assets: Lowered to 0.78x (versus 0.80x in Q1 FY26).

Operating Margin: Stood at 36.26% (Consolidated).

Net Profit Margin: Stood at 28.98% (Consolidated).

Capital Base & Full-Year FY26 Context

Paid-Up Equity Share Capital: Remained unchanged at ₹2,633.22 crore (face value ₹10 per share).

Other Equity: Stood at ₹82,421.19 crore as of March 31, 2026.

FY 2025-26 Full-Year Performance: For the complete financial year ended March 31, 2026, REC Limited posted:

Total Income: ₹59,628.35 crore

Total Expenses: ₹38,843.74 crore

Profit Before Tax: ₹20,766.33 crore

Net Profit After Tax: ₹16,308.17 crore

Full-Year EPS: ₹61.81

Shares of REC Limited was last trading in BSE at Rs. 358.50 as compared to the previous close of Rs. 360.60. The total number of shares traded during the day was 105878 in over 1426 trades.

The stock hit an intraday high of Rs. 362.50 and intraday low of 356.75. The net turnover during the day was Rs. 37975632.00.