REC stock hits 52-week-high on stellar Q4 results; company aims to be NPA-free by FY25-end

REC board approved a dividend of Rs 5 per equity share, in addition to the interim dividend of Rs 11 already paid.

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26 Aug, 2025 12:21

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Shares of REC Limited surged around 10 percent on May 2 and hit a 52-week-high of Rs 557.85, two days after the company reported strong earnings for the quarter ended March 2024. Its consolidated net profit jumped 33 percent on year to Rs 4,079 crore, helped by healthy growth in core income and a provision write-back.

The company's revenue from operations grew 25 percent YoY to Rs 12,613 crore during the same period. In the last five sessions, REC stock has rallied 24 percent.

REC Ltd, operating under the Ministry of Power, is a non-banking financial company (NBFC) dedicated to financing and developing the power sector throughout India.

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Its core net interest income in the fiscal fourth quarter increased 29 percent year-on-year to Rs 4,407 crore on the back of a 67 percent rise in disbursements and a 0.31 percent expansion in the net interest margin (NIM) at 3.60 percent.

REC chairman and managing director (MD) V K Dewangan told reporters that REC is confident of maintaining the net interest margin at over 3.55 percent for FY25.

For the entire FY24, the company's net profit was Rs 14,019, its highest-ever annual PAT. REC attributed it to improving asset quality and effective resolution of stressed assets, resetting of the lending rates and effective management of finance cost.

On May 2, the stock closed 8.8 percent higher at Rs 552 on the National Stock Exchange. In the last one year, the stock delivered multibagger returns of over 300 percent, compared to Nifty's 24 percent return in the same period.

Also Read | REC Q4 results: Net profit climbs 33% to Rs 4,079 crore

REC is aiming to be 'NPA (non-performing assets) free' by the end of FY25, once bad assets of over Rs 13,800 crore are resolved. The company has a debt-raising plan of Rs 1.6 lakh crore for the new fiscal.

A bulk of it (40 percent) will be raised through issuing bonds domestically, another 10 percent through tax saving bonds, over a third through external commercial borrowings and the balance will come through term loans from banks, officials said.

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