INVC NEWS New Delhi — The REC Limited has announced its audited standalone and consolidated financial results for the fiscal year ended March 31, 2025. The performance metrics reveal record-breaking profitability, strong balance sheet fundamentals, and continued investor-friendly initiatives, firmly establishing REC’s stature as a cornerstone in India’s infrastructure financing ecosystem.
FY25 Financial Performance Highlights: Record Net Profit and Solid Earnings Growth
REC Limited delivered a stellar net profit of ₹15,713 crore for the fiscal year 2024–25, marking a 12% year-on-year growth compared to ₹14,019 crore in FY24. This performance stems from strategic loan book expansion, effective cost of funds management, and timely resetting of interest rates on assets.
The total income surged to ₹55,980 crore, a 19% increase from ₹47,214 crore in FY24. Meanwhile, net interest income climbed to ₹19,878 crore, up by 27% year-over-year, showcasing the company’s adept handling of interest margins in a dynamic rate environment.
Earnings per share (EPS) also witnessed a notable rise, reaching ₹59.55 per share (annualized), compared to ₹53.11 per share in the previous year. This underlines REC’s ability to generate sustainable shareholder value.
Q4 FY25 Standalone Results: Momentum Maintained with Double-Digit Growth
For the fourth quarter of FY25, REC posted a net profit of ₹4,236 crore, up by 5% from ₹4,016 crore in Q4 FY24. Other key highlights for the quarter include:
Disbursements: ₹45,538 crore, up by 16% YoY
Net Interest Income: ₹5,876 crore, up by 38%
Total Income: ₹15,174 crore, a rise of 24%
Net Interest Margin (NIM): 3.64%, an improvement of 4 basis points
These figures signal a well-rounded operational expansion, driven by growing demand for infrastructure finance, especially in the power and renewable energy sectors.
Loan Book Strength: AUM Grows to ₹5.66 Lakh Crore
REC’s Asset Under Management (AUM) continues its upward trajectory, rising to ₹5.66 lakh crore as of March 31, 2025, compared to ₹5.09 lakh crore in the previous year. This 11% YoY growth highlights REC’s consistent project pipeline and increasing role in financing India’s energy transition and infrastructure push.
Notably, net credit-impaired assets reduced significantly to 0.38% from 0.86%, following the resolution of five high-value impaired loan accounts totaling ₹6,171 crore. This reflects strengthened credit appraisal frameworks and recovery efforts, contributing to healthier asset quality.
Capital and Liquidity Position: Strong Fundamentals and Ample Growth Headroom
The company’s net worth stood at ₹77,638 crore as of March 31, 2025, reflecting a 13% YoY increase from ₹68,783 crore. Aided by retained earnings and robust profitability, REC’s financial foundation has never been stronger.
The Capital Adequacy Ratio (CRAR) remains at a comfortable 25.99%, significantly above the regulatory minimum, ensuring ample capacity to scale future disbursements. This figure underscores REC’s ability to support long-term capital-intensive infrastructure projects while maintaining a solid cushion against macroeconomic volatility.
Dividend Declaration: ₹2.60 Final Dividend Proposed, Total FY25 Payout at ₹18 Per Share
In line with its consistent shareholder reward policy, REC’s Board of Directors has proposed a final dividend of ₹2.60 per equity share, subject to shareholder approval in the forthcoming Annual General Meeting.
With this final dividend, the total payout for FY25 rises to ₹18 per share, compared to ₹16 per share in FY24, signaling the company’s commitment to wealth creation for its investors while maintaining fiscal prudence.
Operational Efficiency: Strategic Lending and Margin Preservation
REC has managed to preserve and improve its net interest margin (NIM), registering 3.63% for FY25 versus 3.57% in FY24 — a 6 basis point improvement. This enhancement is attributed to:
Strategic resetting of interest rates on loan assets
Efficient management of finance cost
Prudent liquidity operations
Such focused financial engineering ensures that REC sustains its spreads even in a competitive and shifting monetary environment.
Sectoral Focus and Future Outlook: Infrastructure, Renewables, and Beyond
As one of the largest financiers of power infrastructure in India, REC is well-positioned to leverage the massive investments planned in renewable energy, grid modernization, electric mobility, and rural electrification.
With the government’s enhanced focus on energy transition, including solar and wind projects, REC is expected to play a pivotal role in achieving national sustainability goals. The expanding AUM and increasing disbursement volumes underscore REC’s readiness to support ambitious development agendas.
Moreover, the company’s digital transformation initiatives and ESG integration are paving the way for future-ready, resilient operations, enhancing its long-term sustainability and stakeholder trust.
REC: A Pillar of Financial Stability and Growth in Public Sector Financing
Backed by the Government of India and operating under the aegis of the Ministry of Power, REC continues to stand as a linchpin in public sector infrastructure financing. Its AAA credit ratings, expansive reach, and strong financial performance are testaments to its strategic importance in nation-building.
REC’s performance in FY25, marked by high profitability, prudent risk management, and solid capital buffers, demonstrates a model public sector enterprise that successfully balances commercial excellence with developmental objectives.
