REC Limited
BSE:532955
REC Limited
In the bustling corridors of India's financial landscape, REC Limited emerges as a stalwart, quietly fueling the nation's energy infrastructure. Founded in 1969, originally known as Rural Electrification Corporation Limited, the company has woven itself deeply into the fabric of India's power sector. As a public infrastructure finance company, REC Limited plays a pivotal role in supporting the development of electricity projects across the nation. The company’s journey is marked by its relentless dedication to bridging the power divide between India's urban and rural areas. With robust mechanisms for mobilizing financial resources, REC lends a lifeline to various power producers, state electricity boards, and private sector entities. Its reputation is built on facilitating secure and timely financial support, thereby ensuring electrification reaches the farthest corners of the country.
Central to REC's operation is its business model, which generates revenue primarily through interest earned on its financial products. This includes loans tailored for diverse facets of the energy sector—be it generation, transmission, or distribution. REC’s strategic prowess lies in its underwriting capabilities and risk assessment, positioning it as a critical financial partner in India's evolving energy landscape. The company's portfolio is characterized by a mix of conventional and renewable energy projects, reflecting a balanced approach towards sustainable development. REC Limited not only commits capital but also brings strategic planning expertise to the table, ensuring energy projects are not only financed but effectively executed, catalyzing progress in India's quest for energy security and sustainability.
In the bustling corridors of India's financial landscape, REC Limited emerges as a stalwart, quietly fueling the nation's energy infrastructure. Founded in 1969, originally known as Rural Electrification Corporation Limited, the company has woven itself deeply into the fabric of India's power sector. As a public infrastructure finance company, REC Limited plays a pivotal role in supporting the development of electricity projects across the nation. The company’s journey is marked by its relentless dedication to bridging the power divide between India's urban and rural areas. With robust mechanisms for mobilizing financial resources, REC lends a lifeline to various power producers, state electricity boards, and private sector entities. Its reputation is built on facilitating secure and timely financial support, thereby ensuring electrification reaches the farthest corners of the country.
Central to REC's operation is its business model, which generates revenue primarily through interest earned on its financial products. This includes loans tailored for diverse facets of the energy sector—be it generation, transmission, or distribution. REC’s strategic prowess lies in its underwriting capabilities and risk assessment, positioning it as a critical financial partner in India's evolving energy landscape. The company's portfolio is characterized by a mix of conventional and renewable energy projects, reflecting a balanced approach towards sustainable development. REC Limited not only commits capital but also brings strategic planning expertise to the table, ensuring energy projects are not only financed but effectively executed, catalyzing progress in India's quest for energy security and sustainability.
Record Profits: REC reported its highest-ever half-year profit of INR 8,877 crores, up 19% year-on-year, driven by strong disbursements and asset quality improvement.
Strong Loan Growth: Loan book grew 7% to INR 5.82 lakh crore, despite significant prepayments of INR 49,000 crores in H1, with management confident of 11–12% growth for FY '26.
Asset Quality: Net credit-impaired assets reduced to 0.24%, and Stage-II stressed assets fell by 52% due to major prepayments, notably from the Kaleshwaram project.
Interim Dividends: Board approved a second interim dividend of INR 4.60 per share, totaling INR 9.20 per share for the half year.
Guidance Affirmed: Management maintained guidance for 11–12% loan growth, and reiterated long-term loan book target of INR 10 lakh crores by 2030, with renewables expected to contribute 30%.
Sector Outlook: Demand for power sector funding remains robust, with large pipeline and committed order book of INR 2.5 lakh crores supporting future growth.
Prepayment Outlook: Management does not expect high prepayments to persist into the second half, believing first-half payments were largely one-off events.
