RECLTD Q2 FY27 Guidance vs Delivery (RECLTD Management Mirror)

H1 FY27 NIM Reported at 3.22%, With Go-Forward Trajectory Cut to 3.0%-3.2% From Sep'25 Qtr Guidance

In Sep'26 Qtr results, REC reported an H1 FY27 Net Interest Margin (NIM) of 3.22% and an interest spread of 2.38%. This reported performance fell short of the ongoing medium-term trajectory of 3.5% to 3.75% for NIM and 2.75% to 3.5% for spreads that management had explicitly guided in both the Jun'25 and Sep'25 Qtr concalls. Acknowledging this compression, management downgraded its forward guidance in the Sep'26 Qtr concall, stating that NIMs are now expected to remain sustainable in a lower 3.0% to 3.2% range going forward, noting that while sector derisking places pressure on spreads, margin risks are mitigated by the floating nature of approximately 25% of the loan book and fixed-rate borrowing structures.