REC Limited Sees ₹49,000 Crore in Early Loan Repayments in Q2 FY26

REC Limited, a major power sector financier under the Ministry of Power, reported early repayment of loans worth ₹49,000 crore during the second quarter of FY26, impacting the pace of its loan book growth. The bulk of this pre-payment, around ₹11,413 crore, came from the Kaleshwaram Irrigation Project in Telangana. This large inflow reduced the potential loan book growth to 6.6% from an expected 16.6%.

However, management assured that such significant pre-payments are unlikely to occur in the remaining quarters of FY26, indicating a more stable outlook for the rest of the year. This reassurance helped erase earlier declines in REC’s stock following its earnings announcement on October 17, prompting renewed investor confidence on October 29.

Financial Performance Overview

On a consolidated basis, REC reported revenue from operations of ₹15,152.67 crore and a net profit of ₹4,414.93 crore for the second quarter. The company’s consolidated profit for the first half of FY26 stood at ₹8,880.64 crore, translating to an earnings per share (EPS) of ₹33.73.

REC’s subsidiary, REC Power Development and Consultancy Ltd, also performed steadily, recording a revenue of ₹102.24 crore and a net profit of ₹21.83 crore for Q2 FY26. These results highlight the company’s ongoing efforts to maintain operational efficiency across its divisions despite market fluctuations.

Balance Sheet Strength and Cash Flow Position

REC’s standalone total assets were reported at ₹6,39,370.74 crore, with a net worth of ₹82,738.90 crore and loan assets amounting to ₹5,74,780.12 crore. The company ended the period with cash and equivalents of ₹5,012.94 crore. Operating cash flow stood at ₹2,966.84 crore for the half year, supported by robust inflows from financing and investment activities.

Market Update and Share Price Movement

As of October 29, 2025, 1:34 PM, REC share price stood at ₹382, marking a 3.54% rise from the previous session. The company’s market capitalisation was recorded at ₹1,00,589 crore, with a 52-week high of ₹573 and a low of ₹349. 

The stock maintained a P/E ratio of 5.86, a book value of ₹317, and offered a dividend yield of 4.68%. REC’s ROCE and ROE were 9.96% and 21.5%, respectively, indicating a steady performance.

Read More:REC Limited Q2 FY26 Earnings Results ₹4.60 Interim Dividend And Dinesh Garg’s Appointment

Conclusion

The management reiterated its goal to expand the loan book to ₹10 lakh crore by March 2030, implying an annual growth rate of over 13%. With a loan book of ₹5.82 lakh crore as of March 2025, the company continues to focus on long-term financing solutions for India’s energy infrastructure.

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