REC Ltd (RECLTD) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management firmly guides for 10-12% loan book growth in FY27, driven by a significant, structural moderation in loan prepayments.
- The merger with PFC is contingent on the combined entity remaining a government-controlled company, a key condition now pending final cabinet approval.
- NIMs are expected to stabilize in a 3.0-3.2% range, with management accepting this as the new normal amid heightened competition.
Performance Overview
- REC reported its highest-ever half-yearly disbursements, driving a 6% loan book expansion since March 2026, supported by a significant slowdown in prepayments.
- Asset quality strengthened materially, with net NPAs halving to 0.11% and Stage 2 assets declining sharply, marking 19 consecutive quarters with no new NPA formation.
- The renewable energy portfolio grew 27% YoY to INR 86,000 crores, while the infrastructure and logistics book now constitutes 10% of total loans.
- Management provided firm guidance for 10-12% loan book growth for FY27, citing a robust pipeline and moderating prepayment risk.
- The company declared an interim dividend of INR 3.5 per share for the quarter, continuing its track record of shareholder returns.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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