Mumbai — : REC Limited, a Maharatna public sector enterprise and a leading financier in India’s power sector, has announced a total dividend of ₹18.55 per share for FY26, reinforcing its position as a strong dividend-paying stock. The announcement comes alongside the company’s highest-ever annual net profit, making it a key highlight for investors.
Dividend Announcement Takes Center Stage
The total FY26 dividend includes:
- Final Dividend: ₹1.55 per share (subject to shareholder approval)
- Interim Dividend: ₹17 per share (paid in four tranches)
- Total Dividend: ₹18.55 per share
The company stated that dividend payments will be processed within 30 days of approval at the Annual General Meeting (AGM) and will be made exclusively through electronic mode.
Record Annual Profit Despite Q4 Decline
While the fourth quarter saw some pressure, REC Limited delivered steady full-year growth.
FY26 Standalone Performance
- Net Profit: ₹16,282 crore (up 3.6% YoY)
- Total Income: ₹59,187 crore (up 5.7% YoY)
- Profit Before Tax: ₹20,713 crore (up 4.3% YoY)
- Earnings Per Share (EPS): ₹61.71
Q4 FY26 Snapshot
- Net Profit: ₹3,362 crore (down 21% YoY)
- Total Income: ₹14,406 crore (down 5% YoY)
- EPS: ₹12.64 (vs ₹15.96 last year)
Despite the quarterly dip, annual performance highlights resilience and consistent profitability.
Near-Zero NPAs Strengthen Balance Sheet
A major positive for investors is the company’s significant improvement in asset quality:
- Gross NPA: 0.24% (down from 1.35%)
- Net NPA: 0.12% (down from 0.38%)
Additionally, Stage-2 loans declined by 75% year-over-year, reflecting strong credit discipline and risk management.
Strong Business Growth Momentum
REC Limited continued to expand its lending and financing operations:
- Loan Sanctions: ₹4.09 lakh crore (up 21%)
- Total Disbursements: ₹2.11 lakh crore (up 10%)
- Renewable Energy Loan Book: ₹75,347 crore (up 30%)
- Net Worth: ₹84,290 crore (up 9%)
The growing renewable portfolio signals long-term growth potential aligned with India’s energy transition.
Robust Financial Position
The company’s balance sheet and profitability ratios remain strong:
- Total Assets: ₹6.39 lakh crore
- Capital Adequacy Ratio: 23.11%
- Operating Margin: 34.94%
- Net Profit Margin: 27.51%
Key Achievements in FY26
- Maharatna Status: Reaffirmed by the Government of India
- MoU Rating: ‘Excellent’ for three consecutive years
- CPSE Ranking: Improved from 9th to 5th in profit rankings
- ESG Leadership: Highest ESG rating among companies rated by National Stock Exchange of India
What It Means for Investors
The FY26 performance of REC Limited sends three strong signals:
- High Dividend + Record Profit: Indicates strong cash generation and shareholder focus
- Near-Zero NPAs: Reflects a lower risk profile
- Renewable Energy Focus: Provides long-term growth visibility
Outlook
With consistent earnings, improving asset quality, and a strong dividend track record, REC Limited remains a compelling choice for investors seeking stable returns and long-term growth in India’s infrastructure financing space.
