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RECLTD - REC Ltd

📊 NSE: RECLTD 🏢 Finance - Term-Lending Institutions 📅 Last Updated: 12/14/2025 11:43

📢 Recent Corporate Announcements

REC Limited: Independent Director Narayanan Thirupathy Completes 3-Year Tenure

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 03 Mar 2026, 12:08 PM

REC Limited has announced the cessation of Shri Narayanan Thirupathy as a Part-time Non-Official (Independent) Director effective March 3, 2026. This follows the completion of his fixed three-year tenure, which began on March 3, 2023, as per the Ministry of Power's directive. The change is a routine administrative update to the board composition of the Maharatna PSU. There are no reported disagreements or unusual circumstances surrounding this departure.

Shri Narayanan Thirupathy (DIN: 10063245) ceased to be a Director effective March 3, 2026.
The director completed a full 3-year term as mandated by the Ministry of Power order dated March 3, 2023.
The cessation is in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 No action is required as this is a routine board rotation. Investors should monitor for the appointment of a successor by the Ministry of Power to ensure board strength is maintained.

REC Limited Announces Retirement of Executive Director Dharmendra Nagpal

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 01 Mar 2026, 11:38 AM

REC Limited has announced the cessation of Shri Dharmendra Nagpal from his role as Executive Director effective March 1, 2026. This change in senior management is due to superannuation, representing a routine retirement process rather than an unexpected resignation. The position is categorized as one level below the Board of Directors. Such transitions are common in Public Sector Undertakings and are typically managed through internal succession planning.

Shri Dharmendra Nagpal ceased to be the Executive Director effective March 1, 2026.
The departure is attributed to superannuation (retirement) as per company policy.
The role is classified as Senior Management, positioned one level below the Board of Directors.
The disclosure was made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 This is a routine administrative update with no impact on business fundamentals. Investors should continue to focus on the company's asset quality and NIM margins.

REC Limited Sells Umred Power Transmission SPV for ₹2.34 Crore

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 26 Feb 2026, 10:35 PM

REC Limited, through its subsidiary RECPDCL, has completed the sale and transfer of Umred Power Transmission Limited to Maharashtra State Electricity Transmission Company Limited. The transaction involved the transfer of 50,000 equity shares at par value following a tariff-based competitive bidding process. The total consideration received was ₹2,34,28,481, which includes professional fees and reimbursement of expenses. This is a routine operational activity for REC as it facilitates power project development through specific SPVs.

Transfer of 100% equity stake (50,000 shares) in Umred Power Transmission Limited SPV.
Total consideration received for the sale amounts to ₹2.34 crore.
The buyer is Maharashtra State Electricity Transmission Company Limited, selected via competitive bidding.
Financial impact is negligible as the SPV contributed minimally to REC's turnover and net worth.

💡 No action is required as this is a routine divestment of a project-specific subsidiary. Investors should continue to monitor REC's core lending performance and interest margins.

REC Limited Incorporates Subsidiary for Vizag Green Hydrogen Transmission Project

🟡 NEUTRAL ⭐ 4/10

EXPANSION 📅 16 Feb 2026, 04:57 PM

REC Limited's subsidiary, RECPDCL, has incorporated Vizag Power Transmission Limited as a wholly-owned subsidiary on February 16, 2026. This new entity is specifically created to facilitate the transmission system for Green Hydrogen and Green Ammonia projects in the Vizag area of Andhra Pradesh (Phase-I). The subsidiary has an initial authorized and paid-up capital of ₹5,00,000. As per standard procedure, the company will be transferred to a successful bidder selected through a Tariff Based Competitive Bidding (TBCB) process.

Incorporation of Vizag Power Transmission Limited with a paid-up capital of ₹5,00,000.
Project focuses on supporting Green Hydrogen and Green Ammonia initiatives in Andhra Pradesh.
RECPDCL nominated as the Bid Process Coordinator (BPC) by the Ministry of Power.
The subsidiary will eventually be transferred to a successful bidder along with all assets and liabilities.
100% equity subscription was completed via cash consideration at face value.

💡 This is a routine operational update for REC's consultancy and power development business. Investors should view this as part of the company's ongoing project pipeline and no immediate portfolio adjustment is necessary.

REC Ltd Sells Bellary Davanagere Power Transmission SPV to Power Grid for ₹13.02 Crore

🟡 NEUTRAL ⭐ 4/10

M&A 📅 12 Feb 2026, 05:37 PM

REC Limited's wholly-owned subsidiary, RECPDCL, has completed the sale and transfer of its project-specific SPV, Bellary Davanagere Power Transmission Limited, to Power Grid Corporation of India Limited. The transaction, finalized on February 12, 2026, involved the transfer of 50,000 equity shares at par value. The total consideration received was approximately ₹13.02 crore, which includes professional fees and expense reimbursements. This divestment is part of a routine tariff-based competitive bidding process and has a negligible impact on REC's overall financials.

Transfer of 100% shareholding (50,000 equity shares) in the SPV to Power Grid Corporation of India Limited.
Total consideration received for the sale amounts to ₹13,02,26,267.
The sale was conducted through a tariff-based competitive bidding process as per Ministry of Power guidelines.
The SPV's contribution to REC Limited's turnover and net worth was negligible in the last financial year.
The transaction does not fall under related party transactions and was conducted at arm's length.

💡 This is a routine business activity for REC's consultancy arm and has minimal impact on the company's valuation. Investors should treat this as a standard operational update.

REC Ltd Transfers Bellary Davanagere Power SPV to Power Grid for ₹13.02 Crore

🟡 NEUTRAL ⭐ 4/10

M&A 📅 12 Feb 2026, 04:41 PM

REC Limited's subsidiary, RECPDCL, has completed the sale and transfer of its project-specific SPV, Bellary Davanagere Power Transmission Limited, to Power Grid Corporation of India Limited. The transaction involved the transfer of 50,000 equity shares for a total consideration of approximately ₹13.02 crore. This divestment follows a tariff-based competitive bidding process, which is a standard operational procedure for REC's consultancy arm. The financial impact on REC's overall turnover and net worth is reported as negligible.

Transferred 100% shareholding (50,000 equity shares) of Bellary Davanagere Power Transmission Limited.
Total consideration received is ₹13,02,26,267, which includes professional fees and expense reimbursements.
The buyer, Power Grid Corporation of India Limited, was selected through a tariff-based competitive bidding process.
The SPV's contribution to REC's total turnover and net worth was negligible during the last financial year.

💡 This is a routine operational update involving the monetization of a project-specific SPV. No immediate action is required as it does not materially impact the company's core financials.

REC Limited Announces Cessation of Executive Director Chandra Sekhar Sakhamuri

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 11 Feb 2026, 01:09 PM

REC Limited, a Maharatna PSU, has announced the cessation of Shri Chandra Sekhar Sakhamuri, IAS, as Executive Director effective February 11, 2026. The change occurred due to his repatriation to his parent cadre in Tamil Nadu. This position is classified as Senior Management, situated one level below the Board of Directors. As this is a routine administrative movement typical for IAS officers on deputation to PSUs, it is not expected to impact the company's strategic direction.

Shri Chandra Sekhar Sakhamuri, IAS, ceased to be Executive Director on February 11, 2026.
The official is returning to his parent cadre in the state of Tamil Nadu.
The position is part of Senior Management, one level below the Board of Directors.
The announcement was made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 Investors should view this as a routine administrative change common in public sector undertakings. No immediate action is required as the company's core operations and financial outlook remain unchanged.

REC Board Grants In-Principle Approval for Merger with Power Finance Corporation (PFC)

🔵 WATCH ⭐ 10/10

M&A 📅 06 Feb 2026, 05:15 PM

The Board of REC Limited has officially accorded in-principle approval for a merger with Power Finance Corporation (PFC) following a proposal in the Union Budget 2026-27. This restructuring aims to create a larger, more efficient public sector NBFC to support the power sector. The merged entity will continue to operate as a Government Company under the Companies Act, 2013. A detailed merger scheme, including swap ratios and valuation, is currently being formulated for future regulatory approval.

In-principle approval granted for the merger of REC Limited and PFC.
Restructuring follows the Union Budget 2026-27 announcement by the Finance Minister.
The move is designed to achieve greater scale and operational efficiency in public sector NBFCs.
The merged entity is confirmed to remain a 'Government Company' post-restructuring.
A detailed merger proposal and scheme are currently under formulation.

💡 Investors should closely monitor the upcoming announcement regarding the share swap ratio and valuation, which will be the primary drivers of short-term price movement. Long-term holders should consider the potential for improved borrowing power and operational synergies from the combined entity.

REC Clarifies on PFC Merger News Following Union Budget 2026-27 Restructuring Proposal

🔵 WATCH ⭐ 8/10

M&A 📅 03 Feb 2026, 03:51 PM

REC Limited has responded to stock exchange queries regarding media reports of a potential merger with Power Finance Corporation (PFC). While the company stated it is not currently engaged in any such negotiations, it acknowledged the Union Budget 2026-27 announcement proposing the restructuring of PFC and REC to improve scale and efficiency. The company confirmed that this budget proposal will be deliberated in its upcoming Board meeting. Investors should prepare for potential structural changes in the state-run NBFC sector as the government pursues its 'Viksit Bharat' vision.

REC denies being in active negotiations or discussions regarding a merger with PFC as of February 3, 2026.
Union Budget 2026-27 explicitly proposed restructuring PFC and REC to enhance efficiency in public sector NBFCs.
The company plans to deliberate the government's restructuring proposal in its next scheduled Board meeting.
Management maintains that no undisclosed material information currently exists that would impact stock movement.

💡 Investors should closely monitor the outcomes of the next Board meeting for clarity on whether 'restructuring' implies a full merger or a different operational alignment. Maintain a watch on both REC and PFC as any consolidation could lead to significant valuation re-rating.

REC Limited CFO Harsh Baweja Retires; CMD Jitendra Srivastava Takes Additional Charge

🟡 NEUTRAL ⭐ 6/10

MANAGEMENT 📅 01 Feb 2026, 03:19 PM

Shri Harsh Baweja has retired as the Director (Finance) and Chief Financial Officer of REC Limited effective February 1, 2026, following his superannuation. The Ministry of Power has assigned the additional charge of the Director (Finance) post to the current Chairman & Managing Director, Shri Jitendra Srivastava. This interim arrangement is effective for a period of 3 months or until a regular appointment is made. Investors should note that such transitions are routine in Public Sector Undertakings (PSUs) upon reaching retirement age.

Shri Harsh Baweja ceased to be Director (Finance) and CFO effective February 1, 2026.
CMD Shri Jitendra Srivastava (IAS) takes additional charge of the finance portfolio for 3 months.
The transition follows the scheduled superannuation of the outgoing director on January 31, 2026.
The interim appointment is subject to further orders from the Ministry of Power, Government of India.

💡 This is a routine management change due to retirement and does not alter the company's fundamental outlook. Investors should monitor for the appointment of a permanent CFO to ensure continued financial leadership stability.

REC Ltd Declares ₹4.60 Interim Dividend; Q3 Revenue Rises to ₹14,911 Crore

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 29 Jan 2026, 04:25 PM

REC Limited has declared its third interim dividend of ₹4.60 per share for FY 2025-26, with the record date set for February 6, 2026. The company reported a standalone total revenue from operations of ₹14,910.88 crore for Q3 FY26, a steady increase from ₹14,157.19 crore in the same period last year. Interest income from loan assets remains the primary revenue driver at ₹14,238.65 crore. Additionally, fees and commission income saw a significant jump to ₹392.48 crore from ₹75.73 crore year-on-year.

Declared 3rd interim dividend of ₹4.60 per equity share (46% of face value).
Standalone Total Revenue from Operations grew to ₹14,910.88 crore in Q3 FY26.
Interest income on loan assets reached ₹14,238.65 crore for the quarter.
Fees and commission income increased sharply to ₹392.48 crore from ₹75.73 crore YoY.
Dividend record date is February 6, 2026, with payment scheduled by February 27, 2026.

💡 Investors seeking regular income should ensure they hold the stock before the February 6 record date to qualify for the ₹4.60 dividend. The consistent revenue growth and high dividend payout ratio continue to support a positive outlook for this Maharatna PSU.

REC Ltd Q3 Results: Standalone Income at ₹14,952 Cr; Declares ₹4.60 Interim Dividend

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 29 Jan 2026, 04:21 PM

REC Limited reported a standalone total income of ₹14,952.50 crore for the quarter ended December 31, 2025, a 5.5% increase from ₹14,172.71 crore in the previous year. Interest income on loan assets grew to ₹14,238.65 crore, reflecting steady credit demand in the power sector. The Board declared a third interim dividend of ₹4.60 per share, maintaining its reputation for high shareholder payouts. While finance costs rose to ₹9,242.93 crore, the overall operational performance remains robust with a record date for dividend set as February 6, 2026.

Standalone total income for Q3 FY26 rose to ₹14,952.50 crore vs ₹14,172.71 crore YoY.
Declared 3rd interim dividend of ₹4.60 per equity share (46% of face value) for FY 2025-26.
Interest income on loan assets increased to ₹14,238.65 crore from ₹13,692.03 crore in Q3 FY25.
Finance costs for the quarter stood at ₹9,242.93 crore compared to ₹8,837.34 crore YoY.
Consolidated subsidiary REC Power Development contributed ₹107.76 crore to the total income for the quarter.

💡 Investors should hold for the attractive dividend yield and steady growth in the power-financing loan book. The record date of February 6 is key for those seeking the ₹4.60 per share dividend.

REC Ltd Declares ₹4.60 Interim Dividend; Q3 Total Income Rises to ₹14,952 Crore

🟢 POSITIVE ⭐ 8/10

DIVIDEND 📅 29 Jan 2026, 04:05 PM

REC Limited has declared its third interim dividend of ₹4.60 per equity share for FY 2025-26, maintaining its track record of strong shareholder payouts. The company reported a steady growth in standalone total income for Q3 FY26, reaching ₹14,952.50 crore compared to ₹14,172.71 crore in the previous year. Interest income from loan assets remains the primary driver, contributing ₹14,238.65 crore during the quarter. For the nine-month period ended December 2025, total income grew to ₹44,780.92 crore, reflecting stable operational performance.

Declared 3rd interim dividend of ₹4.60 per share (46% of face value of ₹10 each)
Standalone Q3 total income increased to ₹14,952.50 crore from ₹14,172.71 crore YoY
Interest income on loan assets for the nine-month period rose to ₹42,770.34 crore
Record date for dividend entitlement is February 6, 2026, with payment by February 27, 2026
Nine-month standalone finance costs stood at ₹27,309.64 crore compared to ₹25,365.05 crore YoY

💡 Investors should maintain their positions to benefit from the attractive dividend yield and consistent revenue growth. Ensure bank account details and KYC are updated before the February 6 record date to receive the dividend credit.

REC Board to Consider 3rd Interim Dividend for FY 2025-26 on January 29

🟢 POSITIVE ⭐ 7/10

DIVIDEND 📅 23 Jan 2026, 03:04 PM

REC Limited has announced an update to its upcoming Board of Directors meeting scheduled for January 29, 2026. In addition to previously scheduled items, the Board will now consider a proposal for the declaration of a 3rd Interim Dividend for the financial year 2025-26. This follows the company's established practice of frequent dividend distributions to its shareholders. As a Maharatna PSU, REC's dividend decisions are closely watched by income-seeking investors for yield consistency.

Board meeting scheduled for January 29, 2026, to consider financial results and dividend.
Proposal for the 3rd Interim Dividend for FY 2025-26 is on the agenda.
This update follows an earlier board meeting intimation dated January 19, 2026.
The meeting will be held in compliance with Regulation 29 of SEBI (LODR) Regulations, 2015.

💡 Investors should monitor the outcome of the January 29 meeting for the dividend amount and the announced record date. REC remains a strong candidate for dividend-yield portfolios given its Maharatna status and consistent payout history.

REC Limited Subsidiary Rajgarh III Power Transmission Struck Off and Dissolved

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 20 Jan 2026, 06:40 PM

REC Limited has announced that its step-down subsidiary, Rajgarh III Power Transmission Limited, has been officially struck off from the Register of Companies as of January 20, 2026. The entity was a project-specific Special Purpose Vehicle (SPV) under REC Power Development and Consultancy Limited (RECPDCL). Following this regulatory action, the SPV stands dissolved and ceases to be a subsidiary of the parent company. This is a routine administrative procedure common in the power sector for project-specific entities.

Rajgarh III Power Transmission Limited was a wholly owned subsidiary of RECPDCL.
The SPV was officially struck off from the Register of Companies on January 20, 2026.
The entity has ceased to be a subsidiary of REC Limited and RECPDCL following the dissolution.
The action was taken in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 No action is required as this is a routine administrative dissolution of a project-specific SPV. Investors should continue to focus on REC's core lending performance and dividend yields.

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💰 Financial Performance

Revenue Growth by Segment

Total income grew 12% YoY to INR 29,828 Cr in H1 FY26. Net Interest Income (NII) increased 15% to INR 10,608 Cr. Sanctions grew 34% YoY to INR 2.5 lakh Cr, while disbursements grew 27% to INR 1.15 lakh Cr. Distribution segment dominated disbursements at 69%, followed by conventional generation at 11% and renewables at 11%.

Geographic Revenue Split

Not specifically disclosed by region, but the portfolio is split by sector ownership: State sector constitutes 86% of the portfolio (INR 5,00,663 Cr) and the private sector constitutes 14% (INR 81,504 Cr) as of September 30, 2025.

Profitability Margins

Profit After Tax (PAT) for H1 FY26 was INR 8,877 Cr, a 19% YoY increase. Return on Managed Assets (RoMA) stood at 2.6% for 9M FY25 and 2.7% for FY24. Return on Average Total Assets (RoTA) improved to 2.9% in Q1 FY26 compared to 2.8% in FY25.

EBITDA Margin

Core profitability is measured via RoMA, which remained stable at 2.6% in 9M FY25. Net Interest Margin (NIM) remains stable but faces potential pressure from the increasing share of lower-yield renewable energy loans.

Capital Expenditure

As a financial institution, CAPEX is represented by loan disbursements, which reached a record INR 1,15,470 Cr in H1 FY26, a 27% increase YoY. Planned expansion is focused on the infrastructure and logistics sector, which now constitutes 10% of the loan book.

Credit Rating & Borrowing

REC maintains a quasi-sovereign credit rating. Average cost of borrowing was 7.15% for 9M FY25, compared to 7.13% in FY24. Total borrowings reached INR 5,07,000 Cr as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Capital/Debt Funds (100% of operational input). The cost of these funds is 7.15%.

Import Sources

Global capital markets for foreign currency borrowings and domestic markets for bonds/NCDs. Foreign currency exposure includes USD and EUR.

Key Suppliers

Diversified lenders including domestic banks, international banks, and bondholders (e.g., tax-free bonds at 11% of mix, capital gains bonds).

Capacity Expansion

Current loan book (AUM) is INR 5,82,167 Cr as of September 30, 2025, growing 7% YoY. Growth would have been 16% if not for INR 49,000 Cr in prepayments. Target is to increase clean energy financing to 30% of the loan book by 2030.

Raw Material Costs

Interest expense is the primary cost. Total income (net of interest) was INR 17,265 Cr in FY24. Borrowing costs are stable at 7.15% due to diversified sourcing.

Manufacturing Efficiency

Operating expense ratio is highly efficient at 0.1% due to the wholesale nature of the lending business.

📈 Strategic Growth

Expected Growth Rate

16%

Growth Strategy

Diversification into non-power infrastructure and logistics (now 10-12% of book), aggressive expansion in renewable energy (aiming for 30% share by 2030), and leading government schemes for DISCOMs. Sanctions growth of 34% indicates a strong pipeline for future disbursements.

Products & Services

Long-term and short-term loans, debt refinancing, and financial assistance for power generation, transmission, distribution, renewable energy, and infrastructure/logistics projects.

Brand Portfolio

REC Limited (formerly Rural Electrification Corporation), RECPDCL (REC Power Development and Consultancy Limited), REC Foundation.

New Products/Services

Infrastructure and logistics financing (forayed Q3FY23), now 12% of loan book. New focus on clean energy projects expected to contribute significantly to the 30% target by 2030.

Market Expansion

Expansion into non-power infrastructure sectors like roads, metros, and airports. Strategic focus on renewable energy projects where REC offers the lowest market rates.

Market Share & Ranking

REC and PFC each maintain a 20-25% market share in power sector financing.

Strategic Alliances

Partnership with PFC (Power Finance Corporation) which holds a 53% stake in REC. Both entities lead major government power sector reform schemes.

🌍 External Factors

Industry Trends

Shift from conventional thermal power (declined from 39% to 27-28% of book) to renewable energy and infrastructure. The industry is evolving toward green energy transition and integrated infrastructure financing.

Competitive Landscape

Primary competition from PFC and large public sector banks, though REC/PFC often act as lead lenders for large-scale power projects.

Competitive Moat

Moat is derived from GoI ownership and 'Maharatna' status, allowing for the lowest borrowing costs in the industry. This cost leadership is sustainable as long as GoI/PFC ownership remains high.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and Government of India (GoI) power sector policies. 86% of loans are to state-owned entities.

Consumer Behavior

Increased demand for green energy and infrastructure financing from state utilities and private developers.

Geopolitical Risks

Indirect exposure through global borrowing markets; however, quasi-sovereign status provides a buffer during global volatility.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI guidelines for NBFC-IFCs. Currently reviewing draft RBI guidelines on project financing, which REC views as a refined replacement for earlier PPP guidelines.

Environmental Compliance

CSR spend of INR 294.01 Cr in FY25. Focus on ESG with a target of 30% clean energy portfolio by 2030.

Taxation Policy Impact

Standard corporate tax rates apply; profit after tax was INR 14,019 Cr in FY24.

Legal Contingencies

Most NPA accounts (GNPA 1.06%) are under resolution process or at advanced stages of resolution in NCLT/other tribunals. 16% of the private sector book is recognized as Stage III assets.

⚠️ Risk Analysis

Key Uncertainties

Sectoral concentration in power (88-90% of book) and customer concentration (Top 10 = 36%). Potential for 1-2% impact on credit costs if Stage II assets (2.77% of book) migrate to Stage III.