More Stories

Informist, Thursday, Jan. 22, 2026

 

By Nandini Sinha

 

MUMBAI – REC Ltd. is expected to post a modest rise in its net profit for the December quarter due to a muted growth in its assets under management, according to brokerages. However, the net profit is expected to fall on a sequential basis.

 

The state-owned power financier is expected to post a standalone net profit of INR 42.48 billion in the December quarter, up more than 5% on year, according to the average of estimates from five brokerages. The net profit is expected to fall 4% sequentially. REC had posted a net profit of INR 44.26 billion in the September quarter.

 

The highest estimate for the net profit is INR 43.78 billion by Emkay Global Financial Services Ltd., while the lowest estimate is INR 40.41 billion by ICICI Securities Ltd.

 

REC's net interest income is expected to rise to INR 53.52 billion, up more than 4% on year, according to the average of estimates. The net interest income is expected to fall around 2% sequentially.

 

The highest estimate for the power financier's net interest income is INR 54.60 billion by Elara Securities (India) Pvt. Ltd., while the lowest estimate is INR 51.09 billion by ICICI Securities.

 

REC, a 'Maharatna' company under the administrative control of the Ministry of Power, provides long-term loans and other financing products to the Centre, states, and private sector companies for creating infrastructure assets in the power, renewable energy and new technologies, infrastructure, and logistic sectors.

 

REC's assets under management are expected to grow 2-5% on year, according to three brokerages. "REC's muted performance is on account of higher balance transfers due to reduction in the interest rate which made the banks more competitive," according to Mirae Asset Sharekhan Ltd. REC's loan book was INR 5.82 trillion with 86% loans to state sector as on Sept. 30, 2025.

 

REC's asset quality is expected to remain stable for the December quarter as credit cost is not seen impacting the net profit and net interest income, according to brokerages Mirae Asset Sharekhan and Motilal Oswal Financial Services Ltd.

 

The power financier is expected to post provision reversal of INR 500 million for the December quarter, according to Motilal Oswal. The company's provision in the September quarter was INR 1.35 billion.

 

REC's shares have fallen over 2% since its September quarter earnings were announced. Thursday, shares of REC closed at INR 366.20 a piece on the National Stock Exchange, up nearly 3%.

 

All four brokerage reports on the company available with Informist have a 'buy' recommendation on the stock with an average target price of INR 489 per share. This is over 25% higher than the current market price.

 

Following are the December quarter earnings estimates of REC from five brokerages in descending order of the estimate of net profit in INR billion:

 

BROKERAGE NAME	NET INTEREST INCOME	NET PROFIT
Emkay Global Financial Services Ltd.	54.51	43.77
Motilal Oswal Financial Services Ltd.	53.93	43.33
Mirae Asset Sharekhan Ltd.	53.45	42.84
Elara Securities (India) Pvt. Ltd.	54.60	42.01
ICICI Securities Ltd.	51.08	40.40
Average	53.51	42.47

 

End

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.