REC Limited Reports Robust FY25 Performance with ₹3.37 Lakh Crore Loan Sanctions and ₹1.91 Lakh Crore Disbursements – EQ
In Short : REC Limited sanctioned loans worth ₹3.37 lakh crore in FY25, with disbursements reaching ₹1.91 lakh crore, marking robust growth in India’s power sector financing. The company’s net profit rose 12% to ₹15,713 crore, while net NPA fell to 0.38%. With a total dividend of ₹18 per share, REC continues to support energy infrastructure and sustainable growth nationwide.
In Detail : REC Limited, a Maharatna PSU under the Ministry of Power, reported strong financial performance for FY25. The company sanctioned loans totaling ₹3.37 lakh crore, reflecting a substantial increase from the previous fiscal year. Disbursements reached ₹1.91 lakh crore, highlighting REC’s pivotal role in financing India’s power sector and supporting nationwide energy infrastructure development.
The company’s loan book expanded to ₹5.67 lakh crore, growing 11% year-on-year. This growth demonstrates REC’s strategic focus on advancing India’s energy transition goals. By providing financial support to power projects, the company strengthens the capacity and reliability of the nation’s electricity sector. Effective risk management has contributed to this expansion.
Net profit after tax for FY25 rose to ₹15,713 crore, marking a 12% increase from the prior year. The growth was driven by higher interest income and a reduction in non-performing assets. The company’s net NPA declined to 0.38%, down from 0.86% in FY24, reflecting prudent financial management and operational efficiency.
REC declared a final dividend of ₹2.60 per share, bringing the total dividend for FY25 to ₹18 per share. This is an increase from ₹16 per share in FY24. The dividend policy demonstrates the company’s commitment to delivering shareholder value while maintaining robust financial health.
The company’s net interest margin improved to 3.63%, underscoring efficient management of financing costs. By maintaining strong margins, REC ensures sustainable operations and continued support for power sector projects. This financial discipline allows the company to reinvest in future energy initiatives across India.
Looking ahead, REC aims to achieve 12% profit growth in FY26. The company plans to focus on further reducing non-performing assets and controlling financing costs. These measures are expected to sustain its strong financial performance while supporting growth in India’s power and renewable energy sectors.
REC’s performance highlights its vital role in national energy development. By financing power generation, transmission, and distribution projects, the company contributes to improved energy access and reliability. Its strategic initiatives align with India’s broader objectives for sustainable growth and energy security.
The company’s focus on sustainable financing and operational prudence positions it to meet future sector challenges. REC’s initiatives support the national transition toward renewable energy and cleaner power generation, ensuring long-term environmental and economic benefits. Its model serves as an example for other financial institutions in the energy sector.
As REC moves into FY26, its strategies will continue shaping India’s power sector landscape. The company’s robust financial health, low NPAs, and proactive lending approach set benchmarks for industry peers. REC’s achievements in FY25 underscore its essential contribution to India’s energy goals and the ongoing growth of the nation’s power infrastructure.
