REC Ltd logo

REC Ltd

RECLTD NSE

Key Fundamentals

MidcapFinancial InstitutionFinancial Services
Market Cap
₹90,543 Cr
Volatility
Moderate
P/E Ratio
5.69
EBITDA
₹57,050 Cr
Return on Equity
19.17%
Debt to Equity
6.19
Book Value
₹320.88
EPS
₹55.59
52W High
₹390.5
52W Low
₹304.05

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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39 extracted metrics + investor summaries across FY14–FY26.

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Tapetide Score

Data-driven rating, 0–100. How it works →

Technical Indicators

Key Insights

Strengths

3
  • Stock is trading at 1.08 times its book value
  • Stock is providing a good dividend yield of 5.36%.
  • 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

Revenue Growth
5.66%
Net Income Growth
2.67%
Cash Flow Change
115.29%
ROE
-5.43%
ROCE
1.69%
EBITDA Margin (Avg.)
-0.51%

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 10h ago
AI opinion · based on fundamentals
Risk medium

REC Ltd is a government-owned infrastructure finance company with a loan book of ₹5.67 lakh crore (FY25), trading at a P/E of 5.7x and P/B of 1.08x. FY25 profit after tax grew 12% to ₹15,713 crore, though recent TTM profit growth has turned negative at -5%, and sales growth has moderated to 2% TTM after a 15% three-year CAGR.

Bull Case 8
  • Deeply discounted valuation at P/E of 5.7x versus long-term profit compounding of 14% over 5 years, suggesting the market is pricing in significant pessimism
  • Loan book grew 11% YoY to ₹5.67 lakh crore in FY25 with a stated target of ₹10 lakh crore by 2030, implying ~12% annual growth runway
  • Asset quality has improved sharply — gross NPA at 1.05-1.06% and net NPA at 0.24% with no new NPAs added for over 10 consecutive quarters
  • Dividend yield of 5.36% supported by a consistent payout ratio of 29.9%, providing tangible return to shareholders
  • Renewable energy loan book grew 30% YoY to ₹75,347 crore in FY26, diversifying away from conventional thermal power lending
  • Trading at just 1.08x book value despite sustained ROE of 20-21% over the last 3, 5, and 10 years — a significant discount for a profitable lender
  • FY25 total income rose 19% to ₹55,980 crore and net interest margin stood at 3.64% for 9M FY25, reflecting healthy spreads
  • Government-owned status provides implicit sovereign backing, enabling low-cost borrowing and AAA-rated bond issuances
Bear Case 8
  • TTM sales growth has decelerated sharply to just 2%, down from 15% three-year CAGR, signalling potential loan demand slowdown
  • TTM profit declined 5%, and Q4 FY26 net profit fell 22% YoY to ₹3,375 crore amid reduced interest income
  • Low interest coverage ratio indicates vulnerability to funding cost spikes — as a wholesale borrower, margin compression risk is elevated
  • Five-year sales CAGR of only 10.9% is modest for a lender in a high-growth infrastructure economy, reflecting structural concentration risk
  • Stock has delivered -11% return over the past 1 year, underperforming broader markets despite strong fundamentals, indicating negative sentiment
  • Potential capitalisation of interest costs could overstate reported asset quality and profitability metrics
  • Heavily concentrated in power sector lending — any policy shift, discom stress, or regulatory change could impair a large portion of the book
  • Loan book growth moderated to 7% YoY by Q2 FY26 (₹5.82 lakh crore), falling below the 12% annual target needed to reach ₹10 lakh crore by 2030

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 4h ago
Headwinds 3
  • Loan growth slows, target cut Aug 10

    CLSA cut target price to ₹420 after Q1 loan growth slowed to just 1% YoY due to RBPF run-down, core margin moderation, and sharp FX loss from rupee depreciation. FY27 PAT estimate trimmed by 2%-3%.

  • Q1 profit and revenue decline Jul 24

    Q1 net profit fell to ₹41.49B from ₹44.5B YoY and revenue declined to ₹139B from ₹142B, reflecting contraction on both key financial metrics.

  • Board composition fine ₹5.31L Jul 14

    REC fined ₹5.31 lakh by exchanges for non-compliance with board composition norms in Q4FY26 due to delays in government appointment process.

Positives 3
  • Renewable book up 30% YoY Jul 30

    BRSR FY2025-26 shows renewable loan book grew 30% YoY to ₹75,347 crore, with 76% reduction in Scope 2 emissions and zero data breaches.

  • ₹4.25 interim dividend declared Jul 25

    REC declared ₹4.25 per share interim dividend for FY27 alongside Q4FY26 consolidated net profit of ₹4,192.76 crore.

  • New Executive Director appointed Aug 4

    Somya Kant promoted to Executive Director effective August 3, 2026, bringing over 35 years of finance and accounts experience to strengthen senior management.

Neutral 6
  • ₹20.42Cr block trade on NSE Aug 7

    Institutional block trade of ~556,728 shares at ₹366.85 per share worth ₹20.42 crore executed outside open market on NSE.

  • SPV divestments to Tata, PGCIL Jul 30

    REC sold Ryapte Power Transmission to Tata Power for ₹10.86 crore and two other SPVs to Power Grid Corp and Terralight Solar for combined ₹33.26 crore.

  • Three new transmission subsidiaries Jul 30

    REC incorporated Kukshi Alirajpur, Beed Parli, and Kesurdi Power Transmission subsidiaries for intra-state projects in Madhya Pradesh and Maharashtra.

  • New Internal Auditor appointed Aug 1

    Mukul Agarwal appointed Internal Auditor effective August 1, 2026, succeeding Sahab Narain who retired on superannuation.

  • 57th AGM on Aug 25 Jul 28

    REC to hold 57th AGM via video conferencing on August 25, 2026, with shareholders urged to update bank details for electronic dividends.

  • Independent Director appointed Jul 20

    Poonam Chauhan appointed as Non-Official Independent Director for three years effective July 20, 2026 per Ministry of Power order.

TL;DR: REC faces near-term earnings pressure with Q1 loan growth slowing to 1% YoY, declining profit, and FX headwinds prompting CLSA to trim estimates. On the positive side, the renewable loan book is growing strongly at 30% YoY and shareholder returns remain healthy with a ₹4.25 dividend. Asset quality is benign and ESG credentials are improving, but the trend is deteriorating on core growth metrics and margins until RBPF run-down stabilizes and new disbursements pick up.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 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
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
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%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
23%
21%
20%
13%
17%
14%
21%
21%
20%
22%
22%
20%

Shareholding Pattern

As of Jun 2026
Promoters 52.63%
DIIs 16.98%
FIIs 15.76%
Public 11.88%
Others 2.69%
Government 0.05%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
52.63%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.02%
0.02%
0.00%
0.00%
20.60%
19.92%
20.43%
21.23%
21.73%
20.48%
19.16%
17.97%
16.46%
15.79%
15.76%
DIIs
12.28%
12.51%
9.48%
9.94%
9.43%
8.68%
11.85%
12.11%
11.87%
12.01%
13.00%
14.17%
15.44%
14.68%
14.25%
13.90%
14.79%
15.50%
15.86%
16.22%
16.35%
16.98%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
Public
6.29%
6.47%
6.08%
7.38%
8.35%
9.82%
9.73%
10.80%
11.06%
10.53%
10.07%
10.06%
9.66%
10.14%
9.85%
9.64%
9.94%
10.58%
11.31%
12.19%
12.48%
11.88%
Others
28.80%
28.39%
31.81%
30.04%
29.58%
28.87%
25.73%
24.39%
24.37%
24.78%
24.26%
2.49%
2.29%
2.07%
1.98%
2.03%
2.11%
2.07%
2.17%
2.44%
2.70%
2.69%
No. of Shareholders
0
3,32,824
3,42,008
3,31,546
3,81,990
4,23,518
4,67,024
5,20,507
5,76,759
5,71,815
6,21,578
6,89,192
7,70,808
10,33,680
10,40,890
10,41,320
10,82,800
11,26,510
11,54,540
11,79,930
12,08,650
11,75,190

Documents

Frequently Asked Questions about REC Ltd

What does REC Ltd do?
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]
Where is REC Ltd (RECLTD) listed?
REC Ltd is listed on the Indian stock exchanges. It is listed on NSE: RECLTD and BSE: 532955. You can view its live share price, financials, and ratios on Tapetide.
Which sector does REC Ltd belong to?
REC Ltd operates in the Financial Services sector within the Financial Institution industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of REC Ltd?
REC Ltd has a market capitalisation of approximately ₹90543.41 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of REC Ltd?
The Price-to-Earnings (PE) ratio of REC Ltd is 5.69. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of REC Ltd?
Over the past 52 weeks, REC Ltd has traded between a low of ₹304.05 and a high of ₹390.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does REC Ltd pay dividends?
Yes, REC Ltd has a dividend yield of 1.23%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of REC Ltd?
REC Ltd has a Return on Equity (ROE) of 19.17%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research REC Ltd on Tapetide?
On Tapetide, you can view REC Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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]

CEO Mr. Harsh Baweja
Listed 2008-03-12
Face Value ₹ 10
Issued Size 2,63,32,24,000

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