REC's Q4 FY 2025-26 Quarterly Results

Result Summary

• REC Ltd reported a 3.2% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Mar (Q4 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 5.0%.
• Its expenses for the quarter were down by 2.1% QoQ and up 5.5% YoY.
• The net profit decreased 16.7% QoQ and decreased 21.7% YoY.
• The earnings per share (EPS) of REC Ltd stood at 12.69 during Q4 FY 2025-26.

Financial Statments for Q4 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, formerly known as Rural Electrification Corporation Limited, is a public sector enterprise under the Ministry of Power. The company is primarily engaged in providing financial assistance to power sector projects across India. REC Ltd plays a crucial role in the development of power infrastructure, offering loans for generation, transmission, distribution, and renewable energy projects. The company has been instrumental in supporting the government's initiatives to improve electricity access in rural areas and enhance the overall power capacity of the country. Recent developments in the company, as of the latest data available till October 2023, include strategic initiatives to increase its focus on renewable energy projects and sustainable financing solutions. However, specific recent major developments are not available in the provided data.

Revenue

In the fourth quarter of the fiscal year 2026 (Q4FY26), REC Ltd reported a total income of ₹14,583.39 crores. This represents a decline from the third quarter of the fiscal year 2026 (Q3FY26), where the total income was ₹15,058.60 crores, indicating a quarter-over-quarter (QoQ) decrease of 3.2%. Compared to the fourth quarter of the previous fiscal year (Q4FY25), when the total income was ₹15,348.37 crores, there was a year-over-year (YoY) decline of 5.0%. This downward trend in total income reflects a reduction in revenue generation over both the quarter and the year.

Profitability

For Q4FY26, REC Ltd recorded a Profit Before Tax (PBT) of ₹4,414.54 crores, which shows a significant decrease from ₹5,136.43 crores in Q3FY26, translating to a QoQ decline of 14.1%. On a YoY basis, the PBT decreased by 19.6% from ₹5,489.89 crores in Q4FY25. The company's Profit After Tax (PAT) also experienced a notable reduction, amounting to ₹3,375.08 crores in Q4FY26, compared to ₹4,052.44 crores in Q3FY26 and ₹4,309.98 crores in Q4FY25, marking a decrease of 16.7% QoQ and 21.7% YoY. The Earnings Per Share (EPS) in Q4FY26 was ₹12.69, down from ₹15.39 in Q3FY26 and ₹16.24 in Q4FY25, reflecting a decline of 17.5% QoQ and 21.9% YoY.

Operating Metrics

The total expenses for REC Ltd in Q4FY26 were ₹9,581.01 crores, which is a slight decrease compared to ₹9,790.24 crores in Q3FY26, indicating a QoQ reduction of 2.1%. However, when compared to Q4FY25, where the total expenses were ₹9,082.02 crores, there was a YoY increase of 5.5%. The tax expense for Q4FY26 stood at ₹1,039.46 crores, down from ₹1,083.99 crores in Q3FY26 and ₹1,179.91 crores in Q4FY25, marking a decrease of 4.1% QoQ and 11.9% YoY. These figures suggest a reduction in tax liabilities over the periods analyzed. The company's focus on cost management is reflected in the decrease in total expenses on a quarterly basis, although there is a rise when observed year-over-year.