State-Owned Power Finance Major Reports Lower Earnings and Total Income in June Quarter
New Delhi (Economy India): State-owned power sector financing company REC Ltd reported a 6.11% year-on-year decline in its consolidated net profit for the first quarter (April–June) of FY2026-27, as lower interest income weighed on its financial performance.
According to the company’s regulatory filing, consolidated net profit stood at ₹4,192.76 crore in the June quarter, compared with ₹4,465.71 crore in the corresponding quarter of the previous financial year.
Interest Income Impacts Earnings
REC attributed the decline in quarterly profit primarily to lower interest income during the reporting period.
The company’s total income also declined to ₹14,469.49 crore in Q1 FY27 from ₹14,823.98 crore in the year-ago quarter.
Key Financial Highlights
| Particulars | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Consolidated Net Profit | ₹4,192.76 crore | ₹4,465.71 crore | ▼ 6.11% |
| Total Income | ₹14,469.49 crore | ₹14,823.98 crore | ▼ 2.39% |
REC’s Strategic Role
REC is one of India’s leading public sector non-banking financial companies (NBFCs), providing long-term financing for:
- Power generation projects
- Transmission infrastructure
- Renewable energy
- Distribution utilities
- Infrastructure and logistics sectors
The company plays a key role in supporting India’s energy transition and infrastructure development.
Despite the moderation in quarterly earnings, REC continues to maintain a strong presence in India’s infrastructure financing ecosystem. Investors will closely monitor the company’s loan growth, asset quality, borrowing costs, and financing pipeline in the coming quarters as the government accelerates investments in power and renewable energy projects.
(Economy India)
