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REC Profit Dips 21.2%, But Renews Focus on Green Energy
26 Oct
Summary
- REC's net profit fell 21.2% year-on-year in Q2 FY27.
- Renewable energy portfolio surged 27% to ₹86,660 crore.
- REC launched India's first pilot tokenized corporate bond issue.
Rural Electrification Corporation (REC) announced a 21.2% year-on-year decrease in net profit for the second quarter of FY27, amounting to ₹3,478 crore. Correspondingly, its net interest income saw a 9% decline.
REC declared a second interim dividend of ₹3.50 per equity share for FY27, with October 30, 2026, set as the record date.
The company highlighted substantial growth in strategic sectors. Its renewable energy portfolio expanded by 27% to nearly ₹86,660 crore, reflecting a commitment to India's clean energy transition. Furthermore, REC's investments in the non-power infrastructure and logistics sector grew to approximately ₹61,637 crore, now representing over 10% of its total loan assets.
REC also achieved a milestone by successfully issuing India's inaugural pilot tokenized corporate bonds under SEBI's sandbox framework. The ₹500-crore issue garnered bids totaling approximately ₹796 crore, indicating strong investor interest.
Regarding its proposed merger with Power Finance Corporation (PFC), REC received a no-objection certificate from the RBI on October 15, 2026. This merger is subject to further regulatory and shareholder approvals.
REC's shares closed 1.5% higher at ₹298.20 on the NSE, though the stock has seen a decline of 18.9% year-to-date.
