REC Ltd

Q2 FY26Finance

REC Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹327

Market cap₹88.2K Cr

P/E5.5

Updated23 Aug 2026

Read4 min read

What the Q2 FY26 call signalled

3 of 5 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

FundraiseFundraise planned

Order bookOrder book rising

The short version

REC Limited targets loan book growth of 11% to 12% in FY 2025-26, despite elevated prepayments in H1. REC is confident of achieving loan growth of 11% to 12% by the end of FY '26, supported by a committed order book of nearly Rs.

From REC Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Moderate growth

REC Limited targets loan book growth of 11% to 12% in FY 2025-26, despite elevated prepayments in H1.
The company has a committed order book of nearly Rs. 2.5 lakh crores supporting future growth.
By 2030, REC aims for a Rs. 10 lakh crores loan book, with renewable energy expected to contribute 30% (~Rs. 3 lakh crores).
Highest half-yearly sanctions of Rs. 2.5 lakh crores reflect a 34% growth, with half-yearly disbursements at Rs. 1.15 lakh crores, a 27% increase YoY.
The power sector investment requirement over the next 4-5 years is estimated at Rs. 46 lakh crores, offering significant market potential.

2 more points management made on revenue & sales performance

Profitability & Margins

REC is confident of achieving loan growth of 11% to 12% by the end of FY '26, supported by a committed order book of nearly Rs. 2.5 lakh crores.
Profit growth was strong in H1 FY '26, with highest ever half-yearly profits of Rs. 8,877 crores (19% YoY increase).
Earnings per share (EPS) improved to Rs. 33.71 per share; book value at Rs. 314.21 per share.
The company expects continued good performance in the next two quarters, aiming to maintain or improve profitability.
Return on net worth increased to 22.14%, indicating strong capital efficiency.
Asset quality improvement and recoveries (e.g., Kaleshwaram prepayment) support stable earnings outlook.

2 more points management made on profitability & margins

See what REC Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Capex planned

REC has a committed order book of nearly Rs. 2.5 lakh crores indicating strong future capital investment opportunities.
Growth expectations include increasing share of renewables, generation, and distribution sectors, reflecting ongoing and future capex.
The company is optimistic about growth in sanctioned projects, with generation sanctions increasing from Rs. 53,000 crores in H1 ’25 to Rs. 1,13,000 crores.
Distribution sanctions have also grown substantially from Rs. 36,000 crores to Rs. 71,000 crores.
REC plans to fund projects based on good revenue streams regardless of government or private ownership.

2 more points management made on capital expenditure plans

Top-ranked in Finance

Ranked on what management guided this quarter

5x potential

1Mufin Green Finance Ltd₹2.6K Cr

Rev 1Mar 1

2Akiko₹454 Cr

Rev 1Mar 1

3₹972 Cr

Rev 1Mar 2

4₹358 Cr

Rev 1Mar 2

5₹1.5L Cr

Rev 1Mar 3

Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

No specific mention of current or future fundraising through equity during the call.
Borrowing cost increased marginally due to risk mitigation measures in foreign currency borrowings.
Foreign currency borrowings of Rs. 1,55,000 crores are about 99% hedged.
There is focus on managing borrowing costs, with 80-85% of borrowings at fixed cost.
No explicit plan disclosed for raising new debt or equity in the near term.
Management emphasizes achieving loan growth of 11%-12% despite prepayments, indicating continued lending capacity.

2 more points management made on fundraising & capital structure

See what REC Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Order book rising

REC Limited has a committed order book of nearly Rs. 2.5 lakh crores as of October 29, 2025.
This robust order book supports future growth and underpins the company's confidence in achieving an 11% to 12% loan growth rate in the coming years.
With plans to increase the loan book to Rs. 10 lakh crores by 2030, the current order book is a significant foundation toward that target.
The company sees a large market potential across various power sector segments including renewables, thermal, hydro, nuclear, storage, transmission, and distribution investment totaling approximately Rs. 46 lakh crores over the next 4-5 years.

What REC Ltd's management said in earlier quarters

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Frequently Asked Questions

What were REC Ltd Q2 FY26 results?

What is REC Ltd share price analysis?

REC Ltd currently shows a below-average growth signal. The stock trades at a P/E of 5.5 with a market cap of ₹88,213 Cr. Investors should review the full earnings analysis for detailed insights.

Is REC Ltd planning capital expenditure?

REC has a committed order book of nearly Rs.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.