REC Limited, formerly Rural Electrification Corporation Limited, is an Indian public sector company that finances and promotes power projects across India. It is a subsidiary of Power Finance Corporation (PFC) and operates under the administrative control of the Ministry of Power, Government of India. REC Limited is a Maharatna company under the administrative control of the Ministry of Power.
REC is a Government of India Enterprise involved in extending financial assistance across the power sector value chain and is a Systemically Important (Non-Deposit Accepting or Holding) Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI). It provides loans to Central/State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs, and Private Power Developers.
REC operates as a comprehensive infrastructure finance company with a primary focus on the power sector. The Company's products are interest-bearing loans to state electricity boards, state power utilities/state power departments, and the private sector for all segments of power infrastructure. It operates in one business segment which is lending to power, logistics, and infrastructure sectors.
Its financial products include long-term loan, medium term loan, short-term loan, debt refinancing, equity financing, financing of equipment manufacturing for power sector, financing of coal mines, policy for funding against regulatory assets (excluding return on equity component) of power utilities, and a revolving bill payment facility. Its debt refinancing policy is applicable for extending term loans for refinancing existing project term loan of all types of commissioned projects in the power sector, including renewable energy projects, by government and private sector project developers.
REC has diversified into non-power infrastructure and logistics, now covering airports, metro, railways, ports, and bridges. The company provides loans to Metro, Road and highways, Port Waterways, and Steel Infra developers.
REC has a Market Capitalization of ₹1,03,657 Crore (down -32.2% in 1 year) as of July 2025, demonstrating REC's substantial market presence in the financial services sector.
The company delivered strong financial performance in FY25:
Q4 FY25 Results:
* Revenue: ₹15,348.37 Crore as on March 2025 (Q4 FY25)
* Net Profit: ₹4,309.98 Crore as on March 2025 (Q4 FY25)
* REC Ltd's revenue jumped 20.79% since last year same period to ₹15,348.37 Crore in Q4 FY2024-2025.
Q1 FY25 Performance:
* The company secured sanctions worth INR 1,12,791 Crore, a 24% increase compared to the same quarter last year.
* Disbursements increased by 28%, rising from INR 34,133 Crore to INR 43,652 Crore.
* The company's asset under management (AUM) also saw a growth of 17%, reaching INR 5,29,739 Crore.
Annual Performance (FY25):
* Revenue: ₹56,367 Crore
* Profit: ₹15,884 Crore
REC has significantly expanded its renewable energy portfolio, aligning with India's clean energy transition goals. The company is making significant inroads into renewable energy, with sanctions in this segment growing by 59% in Q1. They sanctioned INR 39,655 Crore worth of renewable projects, and disbursements in this area surged by 249% to INR 5,351 Crore.
Loan disbursement for renewable energy surged by 63% in Q4 FY25, highlighting the company's commitment to supporting India's renewable energy infrastructure development.
REC Limited aims to sustain a growth trajectory of 15% to 20%, with a strong likelihood of maintaining a 17% growth rate. This would enable the company to double its AUM to approximately INR 10 lakh Crore by 2028-2029, ahead of their initial target of 2030.
Loan growth guidance is revised to 12-13%, while asset quality improved. The company aims for net-zero NPAs by FY26, with a projected PAT CAGR of 11% from FY25-27.
REC maintains strong credit ratings across various agencies. Domestic debt instruments of REC have been assigned "AAA" by credit rating agencies CRISIL, Fitch, and ICRA. Moody's and Fitch rated its international credit at par with India's sovereign rating.
Promoter Holding: 52.6% as of March 2025, with Power Finance Corporation being the majority stakeholder following PFC's acquisition of a 52.63% controlling stake in REC for ₹14,500 Crore (US$1.7 billion) in March 2019.
From September 1, 2023, REC has been included in the Morgan Stanley Capital International (MSCI) Global Standard Index. The company offers a dividend yield of 3.89%, significantly higher than the industry median.
A notable fact about REC is its role in financing over 25% of India's installed power generation capacity. Another interesting fact is its significant involvement in the government's electrification initiatives, such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) to achieve universal electrification.
REC Limited stands as a cornerstone of India's power infrastructure development, combining financial expertise with strategic vision to support the nation's energy security and sustainable development goals. With its strong financial performance, expanding renewable energy portfolio, and ambitious growth targets, REC continues to play a vital role in transforming India's energy landscape while delivering consistent value to stakeholders.
