Quarter Ended: March 2026
REC Ltd – Q4 FY26 Results
NSE
recltd
BSE
532955
REC continues to deliver consistent profitability driven by strong interest income, despite rising finance costs and provisioning pressures
key financial highlights
- Revenue from Operations:
- Revenue (Q4 FY26): ₹14,563.82 Cr
- QoQ Change: -3.2%
- YoY Change: -5.0%
- Previous Quarter (Q3 FY26): ₹15,051.08 Cr
- Previous Year (Q4 FY25): ₹15,333.54 Cr
- Revenue (Q4 FY26): ₹14,563.82 Cr
- Profit After Tax (PAT):
- PAT (Q4 FY26): ₹3,375.08 Cr
- QoQ Change: -16.7%
- YoY Change: -21.7%
- Previous Quarter (Q3 FY26): ₹4,052.44 Cr
- Previous Year (Q4 FY25): ₹4,309.98 Cr
- PAT (Q4 FY26): ₹3,375.08 Cr
- QoQ Performance
- Revenue Trend: Slight decline
- Profit Trend: Decline
Margin Analysis
Key Drivers:
- Increase in finance costs (₹8,930 Cr)
- Higher impairment on financial instruments
- Increase in CSR and operating expenses
- Pressure from yield normalization in lending book
Key Signal: Margins are compressing slightly due to cost of funds rising faster than yield expansion
Segment insight
Summary:
- REC operates as a NBFC focused on power and infrastructure financing, with earnings driven by loan growth and interest spreads.
Characteristics:
- Interest income driven business
- High leverage model
- Sensitive to interest rate cycles
- Asset quality dependent
Earning quality check
Drivers:
- Strong operating cash flow: ₹5,971 Cr
- Large loan book expansion impact
- Significant provisioning and impairment adjustments
- Stable interest income base
Interpretation:
- Earnings quality is strong, supported by consistent cash generation and stable lending operations, though provisioning impacts volatility
balance sheet Analysis
- Total Assets: ₹6,40,158 Cr
- Total Liabilities: ₹5,54,160 Cr
Insight:
- Massive loan book (~₹5.79 lakh Cr)
- High leverage typical of NBFC model
- Strong equity base (~₹85,054 Cr)
- Stable capital adequacy
key risks
- Interest rate fluctuations
- Asset quality deterioration risk
- High leverage exposure
- Regulatory changes in NBFC sector
management strategy signals
Focus Area:
- Expansion in infrastructure lending
- Diversification beyond power sector
- Maintaining asset quality
- Optimizing cost of funds
Financial Metrics
| Particular | Q4 FY26 | Q.O.Q | Y.O.Y |
|---|---|---|---|
| Total Income | ₹14,583.39 Crore | -3.1% | -5.0% |
| PBT | ₹4,414.54 Crore | -14.1% | -19.6% |
| PAT | ₹3,375.08 Crore | -16.7% | -21.7% |
REC remains a stable, high-yield NBFC play, delivering consistent earnings backed by its lending franchise. However, margin compression and declining profitability trends in the quarter indicate near-term pressure. Long-term outlook remains structurally strong, but sensitive to interest rate and credit cycles.
Official Exchange Filing: REC Ltd
Quarterly Performance Context
COST OF OPERATIONS AS % OF REVENUE
70%
NET PROFIT AS % OF REVENUE
23%
FISCAL YEAR
2025-2026
AUDIT STATUS
REVIEWED