Any current/future new fundraising through debt or equity?

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. RBI's new project financing norms effective October 1, 2025, apply

Any current/future capex/capital investment/strategic investment?

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 priva

Future growth expectations in sales/revenue/volumes?

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 significan

Future growth expectations in earnings/operating earnings/profits/EPS?

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.,

Current/ Expected Orderbook/ Pending Orders?

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

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REC LtdQ3 FY25Finance

REC Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹362P/E: 5.6Market Cap: ₹91.1K CrSector: Finance

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→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.
→REC expects continued robust business from state and private sectors, focusing on projects with good revenue streams regardless of ownership.
→The company foresees growth in renewable portfolio share, distribution, and generation sectors, maintaining NIM between 3.5%-3.75%.

Margin guidance

Category 3

→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.
→Spread and net interest margins targeted to stay within 2.75%-3.5% and 3.5%-3.75%, respectively, despite growth in renewables and competition.
→Resolution of stressed assets expected in FY '26, which should further stabilize earnings.

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Fundraise plans

Yes

→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.
→RBI's new project financing norms effective October 1, 2025, apply to new projects, potentially impacting future sanctions but not immediate fundraising.
→Comments suggest fundraising and costs will be carefully optimized without significantly altering the borrowing profile.

Order book

Yes

→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.

Capex plans

Yes

→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.
→There is a focus on improving infrastructure, reliability, and quality of power distribution, expected to drive capex growth post debt restructuring in DISCOMs.
→No specific new strategic investments detailed, but ongoing project financing aligned with government and private sector initiatives under NEP 2032.

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