State-owned Rural Electrification Corporation (REC) reported a 21.2% year-on-year decline in net profit to ₹3,478 crore for the second quarter of the financial year 2026-27, compared with ₹4,415 crore in the corresponding period last year.
The company’s net interest income (NII) fell 9% year-on-year to ₹5,478 crore from ₹6,022 crore in the year-ago quarter.
REC also declared its second interim dividend of ₹3.50 per equity share of face value ₹10 for FY27.
According to REC’s exchange filing, October 30, 2026, has been fixed as the record date to determine shareholders eligible for the dividend. The dividend will be paid on or before November 21, 2026.
REC expands renewable energy, infrastructure portfolio
REC continued to expand its presence in strategic growth sectors, with its renewable energy portfolio growing 27% year-on-year to approximately ₹86,660 crore.
The company said the growth reflected its commitment to supporting India’s clean energy transition.
Its portfolio in the non-power infrastructure and logistics sector, which it entered more recently, increased to approximately ₹61,637 crore. The portfolio now accounts for more than 10% of REC’s overall loan assets, highlighting its growing presence in infrastructure financing beyond the power sector.
REC’s ₹500-crore tokenised bond issue attracts ₹796 crore in bids
REC said it had successfully issued India’s first pilot issue of tokenised corporate bonds under the Securities and Exchange Board of India’s (SEBI) regulated sandbox framework.
The issue size was ₹500 crore and attracted bids worth approximately ₹796 crore, reflecting investor interest in the new fundraising instrument.
The issuance marks a step in REC’s efforts to explore innovative financing mechanisms through the regulated capital markets.
Shares of REC ended 1.5% higher at ₹298.20 on the NSE. However, the stock has declined 4.7% over the past month and is down 18.9% so far this year.
REC-PFC merger status
The proposed merger of Power Finance Corporation (PFC) and REC is moving closer to the Union Cabinet, with the Finance Ministry reviewing the plan before it is submitted for approval, Power Secretary Pankaj Agarwal told Moneycontrol. The government is considering issuing preference shares to maintain its minimum 51% stake in the merged entity, replacing alternatives discussed earlier, including recapitalisation bonds and a fresh equity infusion.
The merger is targeted to take effect from April 1, 2027. Agarwal did not disclose the amount of preference capital being considered, although earlier reports have pegged the potential outlay at around ₹800 crore.
The development follows the Reserve Bank of India’s no-objection certificate for the proposed merger on October 15 and observation letters issued by the National Stock Exchange and BSE on October 19. The transaction remains subject to the necessary statutory and regulatory approvals, as well as shareholder and creditor consents.