News

REC shares erase post earnings decline after management assuranceThe street was spooked by a slow 6.6% growth in loan book at the end of the second quarter. This may not occur again in the remaining two quarters of the financial year ending March 2026, the management told analysts.By Gaurav Jawalkar   October 29, 2025, 1:30:37 PM IST (Updated)1 Min ReadREC Limited, a leading power sector financier under the Ministry of Power, had seen early payment of loans worth ₹49,000 crore between July and September 2025.

The bulk of the payment, about ₹11,413 crore came from the Kaleshwaram Irrigation Project in Telangana, executed by another public sector enterprise, BHEL.

The pre-payment had squeezed the growth in the size of the loan book to 6.6% from a potential 16.6% growth. However, there may be no such pre-payments in the remaining two quarters of the financial year ending March 2026, the management told analysts in a conference call, triggering a rally in the stock price on Oct 29.

Shares of REC had been on a decline since the company reported its earnings on Oct 17.

The team also reiterated its goal to achieve a loan book of ₹10 lakh crore by March 2030. That would imply a compounded annual growth rate of over 13% from now, faster than the growth rate of the last few years.

The company, with a market capitalisation of approximately ₹97,560 crore, had a loan book of over ₹5.82 lakh crore at the end of March 2025.

: Shree Cement: Time for a breather?Continue Reading(Edited by : Sriram Iyer)First Published: Oct 29, 2025 1:30 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!TagsPower StocksRural Electrification Corporation REC