REC reports record half-yearly profits, loan disbursements in H1 FY26

REC Limited recorded its highest-ever half-yearly profits of INR 8,877 crores in H1 FY26, a 19% growth year-on-year. Total income increased by 12% to INR 29,828 crores, with net interest income rising 15% to INR 10,608 crores. The loan book expanded by 7% year-on-year to INR 5.82 lakh crores, and net credit-impaired assets reduced significantly to 0.24%. The company's net worth reached a new high of INR 82,739 crores, supported by a capital adequacy ratio of 23.74%.

Disbursements also hit a record, totaling INR 1,15,470 crores in the first half of FY26, a 27% increase from the prior year. Q2 alone saw disbursements of INR 56,000 crores, up 18%. The distribution segment represented the largest portion of disbursements at 69%, followed by conventional generation and renewable energy, both at 11%. REC's outstanding loan assets grew to INR 5,82,167 crores, with the state sector comprising 86% of the portfolio.

The company's asset quality improved with gross NPA reducing to 1.06%, and a provision coverage ratio of 77% maintained for NPAs. Stage-2 assets decreased by 52% in the quarter, largely due to a prepayment of INR 11,400 crores from the Kaleshwaram Irrigation Project. REC declared a second interim dividend of INR 4.60 per share, bringing the total half-year dividend to INR 9.20 per share.