REC Limited , a Maharatna company in the power sector financing space, has set an ambitious target to achieve net zero non-performing assets (NPAs) by the end of fiscal year 2025-26. This strategic goal was revealed during a recent investor conference call, highlighting the company's commitment to enhancing its asset quality and eliminating bad loans from its portfolio.

Strategic Focus on Asset Quality

REC's announcement underscores its proactive approach to financial management and risk mitigation. By targeting net zero NPAs, the company aims to strengthen its balance sheet and improve overall financial health. This move is likely to boost investor confidence and potentially enhance REC's standing in the financial markets.

Investor Conference Call Details

In compliance with SEBI regulations, REC has made the audio recording of the Investors Conference Call held on July 31, 2025, available on its official website. This transparency allows shareholders and potential investors to access key information and insights shared during the call.

Upcoming Annual General Meeting

REC has also announced its 56th Annual General Meeting (AGM), scheduled for August 27, 2025, at 11:00 A.M. IST. In line with ongoing practices, the AGM will be conducted through Video Conferencing (VC) or Other Audio Visual Means (OAVM), ensuring widespread participation while adhering to safety protocols.

Key points regarding the AGM include:

• The Notice of the 56th AGM and Annual Report for FY 2024-25 will be sent via email to shareholders with registered email addresses.
• E-voting for resolutions will be available from August 24, 2025 (9:00 a.m.) to August 26, 2025 (5:00 p.m.).
• Shareholders can participate in the AGM through VC/OAVM and cast their votes electronically.

Dividend and KYC Update

The Board of Directors has recommended a final dividend for FY 2024-25, subject to shareholder approval at the AGM. REC emphasizes the importance of updating KYC details, including PAN, nomination choices, and bank account information, to ensure smooth dividend payments, which will be made only through electronic mode for physical security holders.

Conclusion

REC's target of achieving net zero NPAs by FY26 demonstrates its commitment to financial excellence and shareholder value. As the company continues to strengthen its position in the power financing sector, investors and stakeholders will be keenly watching its progress towards this ambitious goal.

REC Limited , a leading power sector financier, has reported a robust performance for the quarter, with a significant increase in net profit and the declaration of an interim dividend.

Strong Financial Performance

The company's unaudited financial results reveal a substantial growth in net profit. REC Limited posted a net profit of ₹44.50 billion, marking a 29% increase compared to ₹34.42 billion in the same quarter of the previous year.

Key Financial Highlights

• Revenue: The company's revenue grew to ₹142.00 billion from ₹125.00 billion in the corresponding period of the previous year.
• Interest Income: The interest income on loan assets rose to ₹141.92 billion from ₹125.00 billion year-on-year, indicating growth in the company's core lending business.
• Total Revenue: The total income for the quarter stood at ₹147.34 billion, up from ₹130.37 billion in the corresponding quarter last year.
• Earnings Per Share: The basic and diluted earnings per share (not annualized) improved to ₹16.90, compared to ₹13.07 in the same quarter of the previous fiscal year.

Dividend Declaration

In a move that will benefit shareholders, REC Limited's Board of Directors has declared an interim dividend of ₹4.60 per equity share. The record date for this dividend has been set as August 1, with the payment to be made on or before August 21.

Financial Position

REC Limited maintains a strong financial position:

These figures demonstrate the company's robust capital base and effective management of asset quality.

Corporate Governance

The Board has also taken steps to enhance corporate governance:

1. Appointed M/s. Agarwal S. & Associates as Secretarial Auditor for five consecutive financial years, subject to shareholder approval.
2. Amended the Code of Conduct for insider trading regulations to ensure compliance with the latest regulatory requirements.

Outlook

With a strong performance this quarter, REC Limited appears well-positioned to continue its growth trajectory in the power and infrastructure financing sector. The company's ability to increase its interest income and maintain asset quality bodes well for its future performance.

Investors and stakeholders will be watching closely to see if REC Limited can maintain this momentum in the coming quarters, especially given the critical role it plays in financing India's power sector development.