HDFC Bank Limited
NSE: HDFCBANK
Financial Services · Banks - Regional
₹707.25 last close on 9 Oct 2026 +2.17%
Research updated
Rec Ltd.
NSE: RECLTDFinancial ServicesCredit Services
- Last close
- ₹300.00
- Day change
- +₹5.00 (+1.69%)vs
- Market cap
- ₹79,260 crIndian rupees
- Research updated
- 1 report
About Rec
Rec Ltd. is a specialized financial institution that plays a pivotal role in India's power sector. Established to provide financial assistance to power projects across the nation, Rec Ltd. primarily focuses on funding initiatives related to power generation, transmission, and distribution. With a mandate to support infrastructure development, it facilitates public and private sector power utilities in achieving their project goals. One of the standout features of Rec Ltd. is its ability to offer customized financing solutions, ranging from short-term loans to long-term financial arrangements. In doing so, it significantly impacts industries involved in electricity generation, grid enhancement, and rural electrification efforts. Headquartered in India, Rec Ltd. serves as a key financial backbone for the country's energy infrastructure, fostering growth and sustainability within the sector. Its operations and strategic initiatives are critical in supporting India's objective to boost electricity availability and reliability across its vast geographic and socio-economic landscape.
- Sector
- Financial Services
- Industry
- Credit Services
- Listing
- NSE: RECLTD
- Chief executive
- Mr. Rajesh Kumar
- Employees
- 590
- Headquarters
- Gurugram, India
- ISIN
- INE020B01018
- Website
- recindia.nic.in
Public research · Report of
Business model & financial foundation
REC (NSE: RECLTD), Infrastructure finance NBFC (power sector lender, NBFC-IFC, RBI Upper Layer): revenue of ₹59,628 crore in FY26 (+5.7% on FY25) and net profit of ₹16,308 crore.
- Revenue, FY26 (₹ crore)
- 59,628
- consolidated
- Revenue growth, FY26
- +5.7%
- on FY25
- Net profit, FY26 (₹ crore)
- 16,308
- to owners
- Return on equity, FY26
- 20.0%
- on average equity
- Market capitalisation (₹ crore)
- 80,866
- at the close of 12 Oct 2026
Company profile
REC is a Maharatna state-owned NBFC (Infrastructure Finance Company) that lends to India's power sector — state distribution companies, generation (thermal and renewable), transmission — and increasingly to infrastructure and logistics. 84% of its Rs 5.90 lakh crore loan book (Jun-26) is to state-sector borrowers. It funds itself with AAA domestic bonds, 54EC capital-gains bonds, bank loans and hedged foreign currency borrowings, and is the nodal agency for government schemes (RDSS, PM Surya Ghar). It is 52.63% owned by PFC and is being merged into PFC.
| Item | Value |
|---|---|
| Legal name | REC Limited (formerly Rural Electrification Corporation Limited) |
| Exchange and ticker | NSE: RECLTD; BSE: 532955 |
| ISIN | INE020B01018 |
| CIN | L40101DL1969GOI005095 |
| Sector | Financial Services |
| Industry | Infrastructure finance NBFC (power sector lender, NBFC-IFC, RBI Upper Layer) |
| Headquarters | Gurugram, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | Kailash Chand Jain & Co. and SCV & Co LLP (joint, C&AG-appointed) for FY26; G.S. Mathur & Co. and S.K. Mehta & Co. appointed for FY27 (since FY24) |
| Market capitalisation | ₹80,866 crore (12 Oct 2026) |
| Shares outstanding | 263.32 crore shares (FY26) |
| Price | ₹300.0 (close, 12 Oct 2026) |
| 52-week range | ₹286.2 - ₹388.3 (to 12 Oct 2026) |
| Website | https://recindia.nic.in |
Corporate structure and shareholding
Parent: Power Finance Corporation Ltd (52.63%); PFC is 55.99% owned by Government of India.
| Entity | Holding | Business |
|---|---|---|
| REC Power Development and Consultancy Ltd (RECPDCL) | 100% | Consultancy and transmission-project bid process coordination; holds transmission SPVs for sale |
| Transmission project SPVs (Chandil, Dumka, Mandar, Koderma etc.) | 100% | Bid-process vehicles transferred to winning bidders |
Boards of PFC and REC approved a scheme of merger of REC into PFC on 28 Jun 2026 at 88 PFC shares per 100 REC shares; appointed date 1 Apr 2027, subject to shareholder, creditor, SEBI/exchange, RBI and MCA approvals.
| Shareholding (% of shares) | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoter | 52.63% | 52.63% | 52.63% | 52.63% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 17.97% | 16.46% | 15.79% | 15.76% |
| Domestic institutions | 15.86% | 16.22% | 16.35% | 16.98% |
| of which mutual funds | 9.41% | 9.18% | 9.02% | 8.51% |
| Retail | 9.27% | 9.97% | 10.21% | 9.80% |
| Other | 4.27% | 4.72% | 5.02% | 4.83% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
REC is a state-owned NBFC-IFC that lends to India's power sector. At Jun-26 its gross loan book was Rs 5,90,000 cr, 84% of it to state entities. By segment: distribution Rs 2,22,895 cr (ex-RBPF), conventional generation 1,49,686, renewables 78,596, infrastructure & logistics 59,289, transmission 45,345. It earns a spread between a ~9.55% yield and a ~7.02% cost of funds (Q1FY27). Funding at Jun-26 was Rs 5,07,555 cr: domestic bonds 2,79,103, bank loans 83,881, ECB 1,37,391 and FCNR 4,730; foreign-currency debt is ~28% of the total and ~99% hedged. Operating costs are tiny (~0.2% of book), so profit is driven by spread x book, less credit cost and FX. PFC owns 52.63%. The boards approved a merger into PFC at 88 PFC shares per 100 REC on 28 Jun 2026, with an appointed date of 1 Apr 2027.
| Peer | Why the dossier compares them |
|---|---|
| Power Finance Corporation (PFC) | Parent and closest peer; same power-sector lending franchise; REC to be merged into it |
| Indian Renewable Energy Development Agency (IREDA) | State-owned renewable energy lender competing in RE book |
| Housing and Urban Development Corporation (HUDCO) | State-owned infrastructure NBFC lending to state entities |
| Indian Railway Finance Corporation (IRFC) | State-owned NBFC-IFC with sovereign-linked funding |
| PTC India Financial Services (PFS) | Power-sector infrastructure lender (private developers) |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total income (consolidated) | n.r. | n.r. | 47,571 | 56,434 | 59,628 |
| Other operating costs (vendor classification) * | 266.7 | 317.5 | 384.1 | 540.4 | 504.0 |
| Profit before tax | 12,431 | 13,898 | 17,960 | 20,117 | 20,766 |
| Total tax expense | 2,395 | 2,731 | 3,814 | 4,233 | 4,458 |
| Profit after tax | 10,036 | 11,167 | 14,145 | 15,884 | 16,308 |
| Diluted EPS (INR) | 37.98 | 42.28 | 53.59 | 60.20 | 61.81 |
| Total interest income (consolidated) | 46,431 | 55,105 | 57,860 | ||
| Fees, dividend, sale of services, FV gain | 1,073 | 1,261 | 1,724 | ||
| Other income | 66.5 | 67.5 | 44.2 | ||
| Finance costs | 29,948 | 34,131 | 36,238 | ||
| Net interest income (interest income less finance cost) | 16,484 | 20,974 | 21,622 | ||
| FX translation loss, FV loss and fee expense | 190.8 | 221.8 | 1,251 | ||
| Employee benefits expense | 238.2 | 268.1 | 271.5 | ||
| Depreciation and amortisation | 24.0 | 24.7 | 27.1 | ||
| Other opex incl CSR and cost of services | 590.1 | 649.1 | 825.0 | ||
| Pre-provision operating profit | 16,580 | 21,139 | 21,016 | ||
| Impairment on financial instruments (write-back negative) | -1,380 | 1,022 | 231.4 | ||
| Exceptional items (loss negative) | 0.00 | 0.00 | -18.3 | ||
| Profit attributable to owners | 14,145 | 15,884 | 16,308 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity * | 51,314 | 58,121 | 69,350 | 78,376 | 85,054 |
| Borrowings * | 3,33,043 | 3,80,790 | 4,45,568 | 4,96,243 | 5,14,725 |
| Cash and cash equivalents * | 299.1 | 333.2 | 498.1 | 631.7 | 718.8 |
| Trade payables * | 36.5 | 41.7 | 90.5 | 133.9 | 179.7 |
| Net property, plant and equipment * | 0.40 | 0.54 | 0.71 | 0.50 | 0.58 |
| Capital work in progress * | 14.3 | 9.98 | 23.8 | 76.0 | 127.7 |
| Total assets * | 5,48,191 | 6,14,502 | 6,40,158 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operations * | 10,512 | 13,843 | 18,018 | 20,379 | 5,972 |
| Free cash flow (vendor definition) * | -866.7 | -37,377 | -57,756 | -39,147 | 5,902 |
| Dividends paid (the provider's sign: an outflow is negative) * | -2,411 | -3,120 | -2,857 | -5,609 | -6,109 |
| Capital expenditure (the provider's sign: an outflow is negative) * | -47.8 | -17.7 | -33.5 | -81.3 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding * | 263.32 | 263.32 | 263.32 | 263.86 | 263.32 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Total income (consolidated) | 13,706 | 14,287 | 15,348 | 14,824 | 15,162 | 15,059 | 14,583 | 14,469 |
| Other operating costs (vendor classification) * | 85.2 | 178.7 | 127.4 | 69.7 | 99.8 | 281.6 | 47.4 | |
| Profit before tax | 5,097 | 5,181 | 5,490 | 5,666 | 5,549 | 5,136 | 4,415 | 5,268 |
| Total tax expense | 1,060 | 1,105 | 1,180 | 1,201 | 1,134 | 1,084 | 1,039 | 1,076 |
| Profit after tax | 4,038 | 4,076 | 4,310 | 4,466 | 4,415 | 4,052 | 3,375 | 4,193 |
| Diluted EPS (INR, not annualised) | 15.33 | 15.48 | 16.24 | 16.96 | 16.77 | 15.39 | 12.69 | 15.92 |
| Pre-provision operating profit | 4,959 | 5,098 | 6,266 | 5,057 | 5,689 | 5,268 | 5,002 | 4,302 |
| Impairment on financial instruments (write-back negative) | -138.2 | -83.4 | 776.5 | -609.8 | 139.7 | 113.7 | 587.8 | -966.6 |
| Exceptional items (loss negative) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -18.3 | 0.00 | 0.00 |
| Profit attributable to owners | 4,038 | 4,076 | 4,310 | 4,466 | 4,415 | 4,052 | 3,375 | 4,193 |
| Total interest income (consolidated) | 13,485 | 13,978 | 14,947 | 14,591 | 14,590 | 14,560 | 14,119 | 14,200 |
| Fees, dividend, sale of services, FV gain | 197.6 | 294.3 | 386.3 | 225.1 | 562.7 | 491.1 | 444.7 | 234.5 |
| Other income | 23.9 | 15.0 | 14.8 | 7.39 | 9.71 | 7.52 | 19.6 | 34.6 |
| Finance costs | 8,506 | 8,837 | 8,768 | 8,934 | 9,131 | 9,243 | 8,931 | 8,748 |
| Net interest income (interest income less finance cost) | 4,979 | 5,141 | 6,179 | 5,657 | 5,459 | 5,317 | 5,188 | 5,453 |
| FX translation loss, FV loss and fee expense | 45.2 | 62.8 | 48.2 | 638.0 | 139.3 | 314.0 | 159.5 | 1,217 |
| Employee benefits expense | 65.5 | 54.8 | 85.5 | 64.0 | 66.7 | 70.6 | 70.2 | 74.3 |
| Depreciation and amortisation | 5.98 | 6.31 | 6.49 | 6.70 | 6.66 | 6.80 | 6.89 | 6.79 |
| Other opex incl CSR and cost of services | 124.9 | 228.4 | 173.4 | 124.5 | 130.4 | 156.3 | 413.7 | 122.1 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 18.6% | 5.7% | |||
| Net margin | 29.7% | 28.1% | 27.3% | ||
| Return on equity | 22.2% | 21.5% | 20.0% | ||
| Return on assets | 2.6% | 2.7% | 2.6% | ||
| Dividend payout | 20.2% | 35.3% | 37.5% | ||
| EPS, diluted (₹) | 37.98 | 42.28 | 53.59 | 60.20 | 61.81 |
| Book value per share (₹) | 194.9 | 220.7 | 263.4 | 297.0 | 323.0 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS (INR)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 12 Oct 2026); market data at the close of 12 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
With Individual or above
What the full research on Rec includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
See Mool’s call and the full research
Individual or above opens every piece of research Mool has published. A new account can start with 10 days of Pro, or of Firm on a work email address. No card needed.
Report history
Reports on Rec
- Research reportLatest
Same sector
More research in Financial Services
ICICI Bank Ltd.
NSE: ICICIBANK
Financial Services · Banks - Regional
₹1,355.00 last close on 9 Oct 2026 +0.44%Research updated
State Bank of India
NSE: SBIN
Financial Services · Banks - Regional
₹959.10 last close on 9 Oct 2026 +2.03%Research updated
Bajaj Finance Ltd.
NSE: BAJFINANCE
Financial Services · Credit Services
₹960.00 last close on 9 Oct 2026 +0.42%Research updated
Life Insurance Corporation of India
NSE: LICI
Financial Services · Insurance - Life
₹394.25 last close on 9 Oct 2026 +3.96%Research updated
Kotak Mahindra Bank Ltd.
NSE: KOTAKBANK
Financial Services · Banks - Regional
₹441.00 last close on 9 Oct 2026 +1.38%Research updated
Prices are the last close on the NSE, 9 Oct 2026. Research from Mool’s report of 12 Oct 2026; page updated 12 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.