REC Ltd Q2 Results and Dividend Update

REC Ltd reported a standalone net profit of Rs 3,391.18 crore for the quarter ended September 30, 2026. The company’s total income for the same period stood at Rs 14,736.77 crore.

Reader Takeaway: Strong loan book growth and dividend payout provide stability while the complex merger with PFC progresses.

What just happened

REC Ltd announced its financial results for the quarter ended September 30, 2026. Alongside the earnings, the Board declared a second interim dividend of Rs 3.50 per share (face value Rs 10). The record date for this payout is October 30, 2026, with payment scheduled by November 21, 2026.

Why this matters

Investors now have visibility into the company's performance as it transitions to its new regulatory status as an Upper Layer NBFC. The dividend provides steady returns, while the loan book expansion indicates continued demand in the power financing sector.

The backstory

On June 28, 2026, the Board approved a merger with Power Finance Corporation (PFC). As of October 2026, the company has secured no-objection certificates from the RBI, BSE, and NSE. The merger is now moving toward further statutory and creditor approvals.

Risks to watch

Profitability has moderated, with a half-year profit of Rs 7,540.64 crore, trailing the Rs 8,876.88 crore recorded in the same period last year. Additionally, the merger with PFC remains subject to various regulatory and legal milestones.

Context metrics

• Loan Book: Rs 6.17 lakh crore (up 5% sequentially).
• Renewable Energy Portfolio: Rs 86,660 crore (27% year-on-year growth).
• Capital Adequacy (CRAR): 24.04%.

What to track next

The progression of the merger with PFC and how the company integrates the regulatory requirements associated with its new Upper Layer NBFC classification.