New Delhi [India], October 26 (ANI): REC Limited, a leading power sector financier, witnessed its assets under management rise by Rs 26,537 crore during the second quarter of the financial year 2026-27, according to financial results approved by its board of directors on Monday.

The sequential expansion brought the company's total loan book to Rs 6.17 lakh crore as of September 30, 2026. The growth accompanied an increase in its renewable energy portfolio, which expanded by Rs 8,064 crore during the quarter to reach Rs 86,660 crore, reflecting a 27 per cent year-on-year increase.

Detailing the sectoral dynamics and operational assessment during the period, the company stated that, 'India's peak power demand scaled new peak in FY27, demonstrating the robustness of the power sector and its ability to meet new emerging challenges in a cohesive and positive manner. The strong power offtake coupled with REC's relentless focus on technology-driven credit assessment & customer-centric solutions, resulted in strong AUM growth. The Loan Book of REC increased by 5% sequentially during the quarter reaching Rs 6.17 lakh crore as of September 30, 2026, reiterating the fact that REC remains the largest standalone financier in the power sector.'

The non-banking financial company disbursed Rs 53,541 crore during the second quarter, bringing aggregate disbursements for the first half of the financial year to Rs 79,207 crore. Profit after tax (PAT) for the six-month period ended September 30, 2026, stood at Rs 7,541 crore, generating an annualised earnings per share of Rs 57.27.

'With Ministry of Power's continued & targeted efforts, the financial health of power utilities continued to improve, reflecting in lower sectoral credit risk premiums. REC has been adequately passing on these benefits to the sector in line with market and still maintained a healthy NIM of 3.22% during H1 FY27,' the company said.

The company reported that its net worth rose 14 per cent year-on-year to Rs 94,325 crore as of September 30. Following the financial performance, the board declared a second interim dividend of Rs 23.50 per equity share of face value Rs 10 each for the financial year 2026-27.

'REC continues to maintain pristine asset quality and resolved a Stage III asset of Rs 4.16 crore during the quarter, resulting in net NPA reaching 0.11% as of September 30, 2026. The Stage-II loan assets also reduced by 80% to Rs 3,235 crore as on 30.09.2026 as compared to last year, driven by focused recovery efforts and effective monitoring,' it noted.

Non-power infrastructure and logistics financing reached Rs 61,637 crore, representing over 10 per cent of total loan assets. The Capital to Risk-Weighted Assets Ratio settled at 24.04 per cent, alongside a Common Equity Tier 1 ratio of 20.91 per cent. 

REC also issued a Rs 500 crore pilot tokenised corporate bond under the regulatory sandbox framework of the Securities and Exchange Board of India, recording an aggregate book of Rs 796 crore. 

The company's Board of Directors also declared a second interim dividend of Rs 3.50 per equity share with a face value of Rs 10 each for FY 2026-27.

REC Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India. (ANI)