REC Limited Earnings Summary — Q4 FY2026

• Net Profit saw a significant sequential and year-on-year drop in Q4 FY26, falling to ₹3,375 Cr.
• Financing margins contracted sharply to 30%, the lowest level in the last 12 quarters.
• Quarterly expenses reached an all-time high of ₹1,231 Cr, likely due to increased provisioning or impairment.
• Annual revenue for FY26 crossed ₹59,000 Cr, but quarterly growth momentum has stagnated.
• Borrowings continue to climb, surpassing ₹5.14 Lakh Crore as of March 2026.
• The tax rate spiked to 24% in the latest quarter compared to its historical average of 21%.
• Despite quarterly volatility, the company maintains a stable 20% Return on Equity (ROE) on an annual basis.

Management remains focused on India's energy transition, specifically expanding into renewable energy and non-power infrastructure while maintaining a 30% dividend payout ratio.

Deteriorating

While annual figures look stable, the sharp compression in financing margins and the 21% YoY drop in quarterly net profit suggest rising cost pressures or asset quality adjustments.

The outlook is cautious in the short term due to margin pressure, but structurally positive as REC transitions into an IREDA-like financier for national Net Zero infrastructure goals.