REC Ltd
REC Ltd
Financial Services F&OKey Fundamentals
MidcapFinancial InstitutionFinancial ServicesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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39 extracted metrics + investor summaries across FY14–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
Key Insights
Strengths
3- Stock is trading at 1.02 times its book value
- Stock is providing a good dividend yield of 5.69%.
- Company has been maintaining a healthy dividend payout of 29.9%
Weaknesses
3- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 10.9% over past five years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
REC Ltd trades at a PE of 5.5x and 1.05x book value with a market cap of Rs 87,212 crore. The company has delivered consistent ROE of ~20% over the past decade but faces slowing revenue growth at 2% TTM and a 5% decline in trailing twelve-month profit.
- Extremely low PE ratio of 5.5x suggests deep value relative to earnings, well below financial sector averages
- Trading at just 1.05x book value, offering near-asset-value entry with limited downside from a valuation perspective
- Consistent ROE of 20-21% maintained across 3-year, 5-year, and 10-year periods indicates durable return generation on equity
- Attractive dividend yield of 5.50% with a healthy payout ratio of 29.9%, providing meaningful income to shareholders
- Compounded profit growth of 14% over both 3-year and 5-year periods demonstrates sustained earnings expansion
- Stock CAGR of 26% over 5 years and 14% over 10 years shows long-term wealth creation track record
- Compounded sales growth of 15% over 3 years indicates improving revenue momentum relative to the 10-year average of 9%
- Market cap of Rs 87,212 crore provides large-cap stability and institutional liquidity
- Low interest coverage ratio raises concerns about the company's ability to service debt from operating profits
- TTM profit growth has turned negative at -5%, signalling near-term earnings pressure
- Revenue growth has decelerated sharply to just 2% TTM from 15% three-year CAGR, indicating a slowdown
- Five-year sales CAGR of only 10.9% is considered poor for a financial services company in a growing economy
- Potential capitalisation of interest costs may be overstating reported profitability and asset quality
- Stock has declined 12% over the past 1 year, underperforming broader markets and indicating negative sentiment
- As a government-owned infrastructure lender, asset quality risks are tied to power sector stress and policy changes
- Dividend payout of 29.9% while seemingly healthy also reflects constraints from regulatory capital requirements on lending growth
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Loan growth slows, target cut Aug 10
CLSA cut target price to ₹420 after Q1 loan growth slowed to 1% YoY, driven by RBPF run-down, core margin moderation, and sharp FX loss. FY27 PAT estimate trimmed by 2%-3%.
- Renewable loan book up 30% Jul 30
REC's BRSR FY2025-26 shows 30% YoY growth in renewable loan book to ₹75,347 crore, 76% reduction in Scope 2 emissions, and ₹338 crore CSR outlay.
- Two new transmission subsidiaries Aug 26
REC incorporated two new subsidiary companies to support participation in power transmission project bids in India, expanding its infrastructure footprint.
- New Executive Director appointed Aug 4
Somya Kant promoted to Executive Director effective August 3, 2026, bringing over 35 years of finance experience to senior management.
- SPV divestments completed Jul 29
REC sold Ryapte Power Transmission to Tata Power for ₹10.86 crore and transferred two other SPVs to Power Grid Corp and Terralight Solar for ₹33.26 crore combined.
- ₹20.42 crore block trade Aug 7
Block trade of ~556,728 shares executed on NSE at ₹366.85 per share, totaling ₹20.42 crore, suggesting institutional participation.
- 57th AGM held, directors approved Aug 25
Shareholders approved FY26 financial statements and appointed new directors including independent members at the August 25 AGM.
- New internal auditor appointed Aug 1
Mukul Agarwal appointed as Internal Auditor effective August 1, 2026, succeeding Sahab Narain who retired on superannuation.
- Kukshi Alirajpur subsidiary formed Jul 30
Wholly owned subsidiary incorporated on July 29, 2026 to manage an intra-state transmission project in Madhya Pradesh.
TL;DR: REC is actively expanding its power transmission and renewable energy infrastructure footprint, with strong 30% growth in renewable loan book and multiple new subsidiaries for project bids. The key risk is near-term earnings moderation from slowing loan growth (1% YoY in Q1), margin compression, and FX headwinds, prompting CLSA to trim estimates. The strategic direction remains constructive but quarterly execution needs to recover for sentiment to improve.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 11,104 | 11,688 | 12,052 | 12,677 | 13,079 | 13,682 | 14,272 | 15,334 | 14,737 | 15,153 | 15,051 | 14,564 | 14,435 |
| Expenses | 332 | -492 | 240 | -425 | 717 | 97 | 263 | 1,084 | 217 | 476 | 655 | 1,231 | 447 |
| Financing Profit | 3,723 | 4,831 | 4,158 | 5,206 | 4,341 | 5,079 | 5,172 | 5,482 | 5,587 | 5,546 | 5,154 | 4,402 | 5,241 |
| Fin. Margin % | 34% | 41% | 34% | 41% | 33% | 37% | 36% | 36% | 38% | 37% | 34% | 30% | 36% |
| Other Income | 4 | 13 | 20 | 29 | 14 | 24 | 15 | 15 | 87 | 10 | -11 | 20 | 35 |
| Interest | 7,049 | 7,350 | 7,654 | 7,896 | 8,020 | 8,506 | 8,837 | 8,768 | 8,934 | 9,131 | 9,243 | 8,931 | 8,748 |
| Depreciation | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 7 | 7 | 7 | 7 | 7 |
| PBT | 3,721 | 4,838 | 4,172 | 5,229 | 4,349 | 5,097 | 5,181 | 5,490 | 5,666 | 5,549 | 5,136 | 4,415 | 5,268 |
| Tax % | 20% | 22% | 21% | 22% | 20% | 21% | 21% | 21% | 21% | 20% | 21% | 24% | 20% |
| Net Profit | 2,968 | 3,790 | 3,308 | 4,079 | 3,460 | 4,038 | 4,076 | 4,310 | 4,466 | 4,415 | 4,052 | 3,375 | 4,193 |
| EPS in Rs | 11.27 | 14.39 | 12.56 | 15.49 | 13.14 | 15.33 | 15.48 | 16.37 | 16.96 | 16.77 | 15.39 | 12.82 | 15.92 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 20,544 | 24,125 | 24,338 | 22,658 | 25,408 | 29,942 | 35,557 | 39,276 | 39,486 | 47,517 | 56,369 | 59,586 | 59,202 |
| Expenses | 1,149 | 1,680 | 1,888 | 3,379 | 1,702 | 3,981 | 3,292 | 4,838 | 1,858 | -366 | 2,153 | 2,568 | 2,809 |
| Financing Profit | 7,555 | 8,162 | 8,988 | 5,946 | 8,066 | 6,969 | 10,776 | 12,387 | 13,894 | 17,936 | 20,084 | 20,780 | 20,342 |
| Fin. Margin % | 37% | 34% | 37% | 26% | 32% | 23% | 30% | 32% | 35% | 38% | 36% | 35% | 34% |
| Other Income | 6 | 4 | 24 | 18 | 33 | 72 | 15 | 62 | 28 | 48 | 58 | 13 | 53 |
| Interest | 11,840 | 14,282 | 13,462 | 13,333 | 15,639 | 18,991 | 21,489 | 22,051 | 23,733 | 29,948 | 34,131 | 36,238 | 36,051 |
| Depreciation | 8 | 20 | 40 | 7 | 8 | 12 | 11 | 18 | 24 | 24 | 25 | 27 | 27 |
| PBT | 7,552 | 8,147 | 8,972 | 5,958 | 8,090 | 7,030 | 10,780 | 12,431 | 13,898 | 17,960 | 20,117 | 20,766 | 20,368 |
| Tax % | 29% | 30% | 30% | 25% | 29% | 29% | 22% | 19% | 20% | 21% | 21% | 21% | — |
| Net Profit | 5,344 | 5,691 | 6,313 | 4,451 | 5,741 | 4,972 | 8,378 | 10,036 | 11,167 | 14,145 | 15,884 | 16,308 | 16,035 |
| EPS in Rs | 20.3 | 21.61 | 23.98 | 16.9 | 21.8 | 18.88 | 31.82 | 38.11 | 42.41 | 53.72 | 60.32 | 61.93 | 60.9 |
| Div. Payout % | 20% | 30% | 30% | 41% | 38% | 44% | 30% | 30% | 30% | 30% | 30% | 30% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 987 | 987 | 1,975 | 1,975 | 1,975 | 1,975 | 1,975 | 1,975 | 2,633 | 2,633 | 2,633 | 2,633 |
| Reserves | 24,085 | 27,906 | 31,696 | 30,613 | 32,571 | 33,422 | 41,789 | 49,339 | 55,487 | 66,717 | 75,184 | 81,863 |
| Borrowing | 1,50,979 | 1,69,212 | 1,67,852 | 2,04,367 | 2,44,249 | 2,86,289 | 3,29,723 | 3,33,043 | 3,80,790 | 4,45,568 | 4,96,801 | 5,15,284 |
| Other Liabilities | 7,404 | 8,840 | 8,723 | 5,416 | 19,659 | 25,345 | 27,380 | 26,503 | 26,592 | 33,273 | 39,883 | 40,378 |
| Total Liabilities | 1,83,456 | 2,06,945 | 2,10,245 | 2,42,370 | 2,98,454 | 3,47,030 | 4,00,867 | 4,10,860 | 4,65,503 | 5,48,191 | 6,14,502 | 6,40,158 |
| Fixed Assets | 110 | 254 | 355 | 132 | 165 | 166 | 267 | 628 | 641 | 632 | 629 | 616 |
| CWIP | 10 | 78 | 166 | 129 | 199 | 288 | 336 | 6 | 3 | 24 | 76 | 128 |
| Investments | 1,596 | 2,352 | 2,617 | 2,948 | 2,463 | 2,386 | 1,981 | 2,190 | 3,170 | 5,352 | 6,674 | 9,831 |
| Other Assets | 1,81,740 | 2,04,261 | 2,07,108 | 2,39,162 | 2,95,627 | 3,44,190 | 3,98,282 | 4,08,035 | 4,61,689 | 5,42,184 | 6,07,123 | 6,29,583 |
| Total Assets | 1,83,456 | 2,06,945 | 2,10,245 | 2,42,370 | 2,98,454 | 3,47,030 | 4,00,867 | 4,10,860 | 4,65,503 | 5,48,191 | 6,14,502 | 6,40,158 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -23,898 | -13,278 | 6,805 | -32,510 | -35,866 | -32,712 | -43,512 | -3,910 | -37,360 | -57,723 | -39,064 | 5,972 |
| Investing | 151 | -756 | -101 | 46 | 457 | 121 | 861 | -287 | -943 | -1,831 | -1,302 | -3,308 |
| Financing | 23,098 | 15,291 | -3,947 | 28,244 | 35,543 | 33,926 | 42,113 | 3,159 | 38,123 | 59,588 | 40,034 | -2,375 |
| Net Cash Flow | -649 | 1,257 | 2,757 | -4,220 | 134 | 1,336 | -538 | -1,038 | -180 | 34 | -333 | 289 |
| Free Cash Flow | -23,943 | -13,537 | 6,601 | -32,584 | -35,957 | -32,812 | -43,586 | -3,958 | -37,377 | -57,756 | -39,070 | 5,948 |
| CFO/OP | -111 | -48 | 42 | -157 | -143 | -119 | -126 | -2 | -92 | -114 | -64 | 17 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 23% | 21% | 20% | 13% | 17% | 14% | 21% | 21% | 20% | 22% | 22% | 20% |
Documents
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Company Information
REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. [1]