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REC net profit up 9% to ₹4,414.93 crore in Q2; declares ₹4.60 dividendThe company’s board of directors declared a second interim dividend of ₹4.60 per equity share (of face value ₹10 each) for the financial year 2025–26. Shares of REC Limited ended at ₹374.90, down by ₹2.60, or 0.69%, on the BSE.By Jomy Jos Pullokaran   October 20, 2025, 4:45:22 PM IST (Updated)3 Min ReadChoose  CNBC TV18 on Google

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State-owned Rural Electrification Corporation Ltd (REC) on Friday (October 17) posted an over 9% year-on-year increase in net profit to ₹4,414.93 crore in the September quarter, on higher income. It had clocked a net profit of ₹4,037.72 crore in the second quarter of the preceding 2024-25 financial year, REC Ltd said in an exchange filing.

In the latest July-September period, the company registered a 10.62% rise in total revenues to₹15,162.38 crore from ₹13,706.31 crore in the year-ago period. Interest income rose to ₹14,589.97 crore from ₹13,484.82 crore in Q2 FY25.

On a standalone basis, during Q2 FY26, sanctions have increased by 97% to ₹1,49,832 crore against ₹76,200 crore in the corresponding Q2 FY25.

Owing to growth in all the verticals, REC is able to maintain its spreads at 2.89% and NIM at 3.64%, resulting in a robust half-yearly profit after tax of ₹8,877 crore. As a result, the Annualised Earnings Per Share (EPS) for the period ended September 30, 2025, accelerated by 19% to ₹67.24 per share as against ₹56.56 per share as at September 30, 2024.

The loan book has maintained its growth trajectory on a sustained basis to ₹5.82 lakh crore as against ₹5.46 lakh crore as on September 30, 2024. The net credit-impaired assets as on September 30, 2025, have reduced to 0.24% from 0.88% as on September 30, 2024, with a Provision Coverage Ratio of 77.06% on NPA assets, as on September 30, 2025.

Aided by growth in profits, the net worth has grown to ₹82,739 crore as on September 30, 2025.

The company’s board of directors declared a second interim dividend of ₹4.60 per equity share (of face value ₹10 each) for the financial year 2025–26. The record date for determining eligible shareholders is Monday, October 27, 2025, and the dividend will be paid or dispatched on or before November 14, 2025.

In a separate filing, REC said its wholly owned subsidiary, REC Power Development and Consultancy Ltd (RECPDCL), has completed the sale and transfer of two project-specific subsidiaries on October 17, 2025, after receiving the necessary consideration from the successful bidders selected through a tariff-based competitive bidding process.

Also Read: REC Q4 results: Maharatna PSU NII jumps 38% YoY; declares ₹2.60 final dividend

The transferred entities include Ananthapuram II Power Transmission Limited, which has been acquired by Shivalaya Construction Ltd, and SRWR Power Transmission Ltd, which has been acquired by Power Grid Corporation of India Ltd. Each subsidiary comprised 50,000 equity shares held by RECPDCL, which have been transferred at par value along with all assets and liabilities.

The consideration received for the transfer of Ananthapuram II Power Transmission Limited amounted to ₹7.70 crore (including taxes), while ₹10.63 crore (including taxes) was received for SRWR Power Transmission Limited. Both transactions also included reimbursement of expenses.

REC clarified that neither of the buyers belongs to its promoter or promoter group, and the transactions do not qualify as related party transactions. The sale was executed through Share Purchase Agreements (SPAs) signed on October 17, 2025, and is not in the nature of a slump sale.

Also Read: REC shares fall after PSU cuts AUM growth guidance for FY26

REC, under the Ministry of Power, is a Non-Banking Finance Company (NBFC), which provides long-term loans and other financing products to states, the Centre and private companies for the creation of infrastructure assets in the country.

Shares of REC Limited ended at ₹374.90, down by ₹2.60, or 0.69%, on the BSE.Continue ReadingFirst Published: Oct 17, 2025 9:16 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsearningsRECResults Boardroom