Public infrastructure finance company REC has reported its highest-ever quarterly net profit of ₹44.51 billion (~$514.09 million) for the first quarter (Q1) of the financial year (FY) 2026, a 29% increase from ₹34.42 billion (~$397.55 million) during the same period in the previous year.

The company also declared a first interim dividend of ₹4.60 (~$0.05)/equity share with a face value of ₹10 (~$0.12) each.

The total income for the quarter stood at ₹147.34 billion (~$1.70 billion), up 13% from ₹130.37 billion (~$1.51 billion) in Q1 FY 2025. Net interest income grew by 17% year-over-year to ₹52.47 billion (~$606.03 million) from ₹44.74 billion (~$516.75 million). Disbursements during the quarter rose by 36% to ₹595.08 billion (~$6.87 billion), up from ₹436.52 billion (~$5.04 billion) in the same period of the preceding year.

REC’s disbursements to the renewable energy sector increased by 35%. It also maintained its spreads at 2.96% and net interest margin at 3.74%.

The return on net worth improved to 22.63% in Q1 FY 2026, up from 19.51% in Q1 FY 2025, a 312-basis-point increase. The company’s earnings per share on an annualized basis rose 29% to ₹67.60 (~$0.78) as of June 30, 2025, increasing from ₹52.28 (~$0.6) a year earlier.

REC’s loan book grew to ₹5.85 trillion (~$67.73 billion) as of June 30, 2025. The quality of assets also improved, with net credit-impaired assets declining to 0.24% as of December 31, 2024, compared to 0.82% as of June 30, 2024. The provision coverage ratio on non-performing assets (NPA) stood at 77.05%. REC resolved one NPA account during the quarter.

During Q1 FY 2026, REC’s yield on loan assets increased to 10.08% from 9.99% in Q1 FY 2025. The cost of funds rose marginally to 7.12% from 7.05%.

As a result, the interest spread stood at 2.96%, slightly higher than the 2.94% recorded in the corresponding period of the previous year.

The company’s net interest margin increased from 3.64% in Q1 FY 2025 to 3.74% in Q1 FY 2026.

Its net worth increased to ₹796.88 billion (~$9.23 billion) as of June 30, 2025, supported by the growth in profitability.

As of Q1 FY 2026, REC’s renewable loan portfolio includes ₹288.43 billion (~$3.46 billion) in solar projects with a capacity of 56,940 MW, ₹100.31 billion (~$1.20 billion) in wind projects with a capacity of 7,370 MW, and ₹96.99 billion (~$1.16 billion) for hybrid projects of 7,024 MW capacity. The company has also sanctioned 10,145 MW in large hydro, 255 MW in small hydro, and 617 MW in pumped storage hydro projects.

Recently, REC Limited received approval from the Central Board of Direct Taxes (CBDT) to issue 500,000 zero-coupon bonds aggregating to ₹50 billion (~$582.25 million).

In May this year, the company reported a total income of ₹153.48 billion (~$1.79 billion) for the fourth quarter of the financial year 2025, representing a 21% year-over-year increase.

In April this year, REC Limited raised ₹50 billion (~$586 million) through the issuance of bonds.