Public infrastructure finance company REC reported a revenue from operations of ₹150 billion (~$1.58 billion), down 1% year-over-year (YoY) from ₹151.53 billion (~$1.59 billion).

The company’s net profit declined 21.2% YoY to ₹34.78 billion (~$365.68 million) from ₹44.15 billion (~$464.21 million).

Earnings per share (EPS) stood at ₹13.21 (~$0.14), compared to ₹16.77 (~$0.18) in the corresponding quarter last year.

REC’s loan book increased 5% quarter-over-quarter (QoQ) to ₹6.17 trillion (~$64.87 billion) as of September 30, 2026, adding ₹265.37 billion (~$2.79 billion) during the quarter.

The company attributed the growth in its loan book to strong power demand and increased electricity offtake. It also cited improved financial health among power utilities and lower sectoral credit risk premiums.

The company’s renewable energy loan portfolio increased by ₹80.64 billion (~$847.87 million) during the quarter, reaching ₹866.60 billion (~$9.11 billion), a 27% YoY increase.

REC’s loan disbursements during the quarter stood at ₹535.41 billion (~$5.63 billion).

Net non-performing assets ratio declined to 0.11% as of September 30, 2026, from 0.24% a year earlier.

In Q1 of FY 2027, REC recorded revenue from operations of ₹144.35 billion (~$1.5 billion, down 3% YoY from ₹148.17 billion (~$1.54 billion).

First Half Results

For the first half (1H) of FY 2027, REC reported revenue from operations of ₹294.35 billion (~$3.09 billion), down 1.8% YoY from ₹299.69 billion (~$3.15 billion).

Its net profit declined by 13.6% YoY to ₹76.70 billion (~$806.44 million) from ₹88.81 billion (~$933.76 million).

EPS came in at ₹29.13 (~$0.31), compared to ₹33.73 (~$0.35) in the corresponding period last year.

Business Highlights

REC’s total disbursements during the first half reached ₹792.07 billion (~$8.33 billion).

The company’s non-power infrastructure and logistics loan portfolio reached ₹616.37 billion (~$6.48 billion), accounting for over 10% of its total loan assets.

During the quarter, REC issued ₹5 billion (~$52.57 million) in tokenized corporate bonds under the Securities and Exchange Board of India’s regulated sandbox framework. The pilot issue attracted bids worth approximately ₹7.96 billion (~$83.69 million).

REC also received a no-objection certificate from the Reserve Bank of India on October 15, 2026, for its proposed merger with Power Finance Corporation. BSE and NSE issued their no-objection letters on October 19, 2026. The merger remains subject to further regulatory, shareholder, and creditor approvals.