REC's Q1 FY 2025-26 Quarterly Results

Result Summary

• REC Ltd reported a 16.7% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 13.2%.
• Its expenses for the quarter were up by 19.0% QoQ and 18.0% YoY.
• The net profit increased 9.5% QoQ and increased 29.1% YoY.
• The earnings per share (EPS) of REC Ltd stood at 17 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

REC Ltd is a prominent enterprise in the financial services sector, primarily engaged in providing infrastructure financing and power sector development in India. As a public sector undertaking, REC Ltd plays a critical role in funding and promoting power projects, which include generation, transmission, and distribution infrastructure. The company is headquartered in India and operates under the aegis of the Ministry of Power, Government of India. REC Ltd has been instrumental in facilitating financial resources to state electricity boards, state governments, and private sector borrowers. While specific recent developments are not provided, REC Ltd's initiatives generally align with national energy policies and infrastructure expansion goals.

Revenue

In the first quarter of fiscal year 2026, REC Ltd reported total income of ₹14,823.98 crores. This represents a 16.7% increase in revenue compared to the previous quarter (Q4FY25), where the total income was ₹12,706.66 crores. Year-over-year growth is also evident, with a 13.2% increase from the first quarter of fiscal year 2025, which recorded a total income of ₹13,092.44 crores. The upward trajectory in revenue underscores the company's robust financial performance during this period, reflecting increased activity and/or improved pricing in its core business areas.

Profitability

REC Ltd's profitability in Q1FY26 demonstrated notable growth. The company recorded a profit before tax of ₹5,666.41 crores, showing an 8.4% increase from the previous quarter's profit before tax of ₹5,229.48 crores. Comparing year-over-year, there is a substantial 30.3% rise from ₹4,349.23 crores in Q1FY25. Profit after tax (PAT) also followed a similar positive trend, reaching ₹4,465.71 crores in Q1FY26, up by 9.5% from ₹4,079.09 crores in Q4FY25, and by 29.1% from ₹3,460.19 crores in Q1FY25. The earnings per share (EPS) increased to ₹17.00 in Q1FY26 from ₹15.40 in Q4FY25 and ₹13.10 in Q1FY25, marking a QoQ growth of 10.4% and a YoY increase of 29.8%. These metrics suggest a solid profitability phase for the company.

Operating Metrics

REC Ltd's operating expenses for Q1FY26 were reported at ₹9,767.36 crores, reflecting a QoQ increase of 19.0% from ₹8,210.84 crores in Q4FY25 and an 18.0% hike when compared to ₹8,276.45 crores in Q1FY25. The tax expense for the quarter stood at ₹1,200.70 crores, up by 4.4% from the previous quarter and 35.1% higher on a year-over-year basis compared to ₹889.04 crores in Q1FY25. These figures indicate that while expenses have risen, the company's ability to sustain profitability has also strengthened, as evidenced by higher earnings and increased tax outlays, which are typically associated with improved profit margins.