REC , a key player in India's power sector financing, has reaffirmed its loan growth target for the fiscal year 2026 despite a setback in its second-quarter performance and significant early loan repayments.

Q2 Performance and Early Loan Repayments

REC experienced early loan repayments worth ₹49,000.00 crore between July and September 2025, with ₹11,413.00 crore coming from the Kaleshwaram Irrigation Project in Telangana executed by BHEL. These prepayments reduced loan book growth to 6.60% from a potential 16.60%. Despite this, the company remains optimistic about achieving its loan growth target of 11-12% for FY26.

Management Assurance and Stock Performance

REC's management assured analysts that no such prepayments are expected in the remaining two quarters of the financial year ending March 2026. This assurance led to a stock price rally on October 29, following a decline since the company reported earnings on October 17.

Long-Term Vision

REC has set an ambitious long-term goal for itself:

This target requires a compounded annual growth rate of over 13%, underscoring REC's commitment to significant expansion in its loan portfolio over the next several years.

Current Financial Position

As of March 2025, REC has:

• A market capitalization of approximately ₹97,560.00 crore
• A loan book of over ₹5.82 lakh crore

Power Sector Outlook

The company's maintained growth target and long-term vision are underpinned by its positive outlook on the power sector. REC's assessment suggests that the sector remains robust, providing a strong foundation for the company's financing activities and growth strategies.

As a key financial institution in the power sector, REC's performance and outlook provide valuable insights into the broader trends and expectations within India's energy infrastructure development landscape.

REC Limited , a Maharatna company and a key player in India's power sector financing, has announced robust financial results for the second quarter of fiscal year 2025-26, along with a significant interim dividend declaration and the sale of two power transmission units by its subsidiary.

Strong Financial Performance

For the quarter ended September 30, 2025, REC Limited reported a standalone net profit of ₹4,425.86 crore, showcasing the company's solid financial position. The six-month period saw an even more impressive figure, with net profits reaching ₹8,876.88 crore.

On a consolidated basis, the company's performance was equally strong:

The company's total income for the quarter stood at ₹15,094.61 crore on a standalone basis and ₹15,162.38 crore on a consolidated basis, indicating a robust revenue stream.

Dividend Announcement

REC's Board of Directors has declared a second interim dividend of ₹4.60 per equity share for the financial year 2025-26. This dividend comes with the following key details:

• Record Date: October 27, 2025
• Payment Date: On or before November 14, 2025

This is in addition to an earlier interim dividend of ₹4.60 per share paid for the same fiscal year, demonstrating the company's commitment to shareholder returns.

Operational Highlights

The financial results reflect REC's strong position in the power sector financing domain. The company's loan assets stood at ₹5,82,167.19 crore as of September 30, 2025, indicating its significant role in funding power and infrastructure projects across India.

Management Changes

The Board meeting also saw a key management change announcement. Shri Dinesh Garg has been appointed as the Company Secretary & Compliance Officer and Key Managerial Personnel, effective December 1, 2025. He will be taking over from the incumbent, Shri J.S. Amitabh, who is set to retire on November 30, 2025.

Subsidiary Sells Two Power Transmission Units

REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, has sold its entire shareholding in two project-specific subsidiaries on October 17, 2025. The details of the transactions are as follows:

1. Ananthapuram II Power Transmission Limited was sold to Shivalaya Construction Limited for ₹7.70 crore.
2. SR WR Power Transmission Limited was transferred to Power Grid Corporation of India Limited for ₹0.63 crore.

Both transactions included taxes and reimbursement of expenses. The subsidiaries were sold at par value along with all assets and liabilities through a tariff-based competitive bidding process. The buyers do not belong to the promoter or promoter group, and the transactions are not classified as related party transactions. Both subsidiaries had negligible contribution to turnover and net worth during the last financial year.

Conclusion

With its strong financial performance, strategic management changes, and the divestment of two power transmission units by its subsidiary, REC Limited continues to demonstrate its operational efficiency and financial health. The company appears well-positioned to maintain its role as a key player in India's power sector financing while optimizing its portfolio of assets.