REC Limited has completed the divestment of two project-specific subsidiaries through its wholly owned arm, REC Limited Power Development and Consultancy Limited (RECPDCL). The transfer of shareholding, along with all associated assets and liabilities, was finalized on July 29, 2026, following a tariff-based competitive bidding process. This move streamlines the company’s portfolio by exiting specific transmission projects that contributed negligible revenue in the last financial year, allowing management to focus on core operations and higher-yield assets.

The sale involved the transfer of 50,000 equity shares each from Bhadla Ramgarh Power Transmission Limited and Shongtong Power Transmission Limited. The successful bidders were selected through an open competitive process, ensuring market-driven valuation. The transaction does not constitute a related-party transaction, nor is it classified as a slump sale. Instead, the consideration amounts were determined in accordance with guidelines issued by the Ministry of Power, Government of India.

Transaction Details

The financial specifics of the divestment are outlined below. Both figures include applicable taxes, professional fees, and reimbursement of expenses.

Power Grid Corporation of India Limited acquired Bhadla Ramgarh Power Transmission Limited, while Terralight Solar Energy Tinwari Private Limited took over Shongtong Power Transmission Limited. Neither buyer belongs to the promoter or promoter group of REC Limited.

Regulatory Compliance and Process

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Share Purchase Agreements (SPA) for both entities were executed on July 29, 2026, marking the completion date of the sale. The filing confirms that the transactions are outside the scope of any Scheme of Arrangement under Regulation 37A of the LODR Regulations.

What the Numbers Show

The divestment highlights a strategic shift toward optimizing asset quality rather than sheer volume. Since the sold units contributed negligible turnover and net worth in the previous financial year, their removal likely improves consolidated efficiency metrics without impacting top-line revenue significantly. The use of a competitive bidding mechanism suggests that the valuations reflect current market rates for transmission infrastructure, providing fair value realization for these non-core assets.

REC Limited has declared a first interim dividend of ₹4.25 per equity share for the financial year 2026-27, with shareholders holding units on July 31, 2026, eligible to receive the payout. The Maharatna public sector undertaking also fixed Friday, August 14, 2026, as the record date for its final dividend of ₹1.55 per share for FY2025-26, subject to shareholder approval at the upcoming Annual General Meeting. This dual dividend announcement coincides with the company’s disclosure of unaudited financial results for the quarter ended June 30, 2026, under Regulations 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Board of Directors approved the dividends during its meeting held on July 24, 2026. Management confirmed that eligible shareholders will receive the dividend payments within 30 days from the date of declaration. The final dividend recommendation for FY26 was previously made by the Board and awaits formal ratification by shareholders.

Financial Performance in Q4FY26

For the quarter ended June 30, 2026, REC Limited reported a standalone net profit after tax of ₹4,149.46 crore, compared to ₹4,451.02 crore in the same period last year. On a consolidated basis, net profit stood at ₹4,192.76 crore, down from ₹4,465.71 crore in Q4FY25. Total income from operations for the quarter was ₹14,296.10 crore on a standalone basis and ₹14,434.92 crore on a consolidated basis.

The company’s total comprehensive income for the period rose significantly to ₹7,396.65 crore (standalone) and ₹7,439.95 crore (consolidated), driven by other comprehensive income items. For the full year ended March 31, 2026, consolidated net profit was ₹16,308.17 crore against total operating income of ₹59,584.16 crore.

Balance Sheet Strength

As of June 30, 2026, REC’s standalone net worth increased to ₹91,836.22 crore from ₹84,290.41 crore at the end of FY26. The debt-equity ratio improved to 5.52 from 6.00 in March 2026, indicating a strengthening balance sheet position. Outstanding debt capital stood at ₹5,07,555.37 crore. The unaudited standalone financial results were limited reviewed by the Joint Statutory Auditors and approved by the Audit Committee prior to Board ratification.