REC Ltd.
NSE: RECLTD · Financial Institution
Snapshot
Unlock REC Ltd.'s vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
REC Limited is a public financial institution focused on financing power generation, transmission, and distribution projects across India. It also functions as a nodal agency for various government electrification schemes and provides consultancy services to power sector utilities.
Business Model
The company generates revenue primarily through interest income on term, medium-term, and short-term loans provided to central, state, and private power utilities. Additionally, it earns fees by acting as a bid process coordinator and providing implementation consultancy for power infrastructure projects.
Growth Outlook
Growth is driven by the continued expansion of India's power infrastructure and the implementation of national electrification schemes. The company remains positioned to benefit from the ongoing transition toward competitive bidding for transmission projects.
Key Risks
- Credit Risk. The company faces significant exposure to the financial health of state-owned power distribution companies, which may struggle with timely debt servicing.
- Regulatory Risk. Changes in government policies regarding power sector subsidies and tariff structures could impact the viability of financed projects.
- Interest Rate Risk. Fluctuations in interest rates may affect the company's net interest margins and the demand for new project financing.
- Concentration Risk. As a specialized lender to the power sector, the company is highly susceptible to cyclical downturns and structural shifts within the energy industry.
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Key Metrics
REVENUE
₹59,169 Cr
TTM · consolidated
NET PROFIT
₹16,035 Cr
TTM · consolidated
EPS
₹60.77
TTM · consolidated
RETURN ON EQUITY
19.6%
TTM · consolidated
P/E
5.2x
Q1 FY27 · consolidated
NET PROFIT MARGIN
29.0%
Q1 FY27 · consolidated
DEBT TO EQUITY
1.7x
Q4 FY20 · standalone
Peers · Financial Institution
| Company | Mkt Cap | P/E | EV/EBITDA | Rev Gr YoY | EBITDA Mgn | ROE | ROCE | 1Y Return |
|---|---|---|---|---|---|---|---|---|
REC Ltd.RECLTD | ₹83,921 Cr | 5.24 | — | 2.0% | — | 19.6% | — | -12.5% |
Power Finance Corporation Ltd.PFC | ₹1.17L Cr | 4.51 | — | 4.6% | — | 26.8% | — | -8.8% |
Indian Railway Finance Corporation Ltd.IRFC | ₹1.09L Cr | 15.16 | — | 4.9% | — | 13.1% | — | -31.4% |
Housing & Urban Development Corporation Ltd.HUDCO | ₹36,138 Cr | 8.49 | — | 25.9% | — | 21.3% | — | -15.7% |
Indian Renewable Energy Development Agency Ltd.IREDA | ₹31,924 Cr | 16.89 | — | — | — | 15.6% | — | -21.1% |
IFCI Ltd.IFCI | ₹27,315 Cr | 158.41 | — | 4.8% | — | 4.9% | — | +94.4% |
As of Q1 FY27
Financials
REC Ltd.
NSE: RECLTD · Financial Institution
Snapshot
Unlock REC Ltd.'s vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
REC Limited is a public financial institution focused on financing power generation, transmission, and distribution projects across India. It also functions as a nodal agency for various government electrification schemes and provides consultancy services to power sector utilities.
Business Model
The company generates revenue primarily through interest income on term, medium-term, and short-term loans provided to central, state, and private power utilities. Additionally, it earns fees by acting as a bid process coordinator and providing implementation consultancy for power infrastructure projects.
Growth Outlook
Growth is driven by the continued expansion of India's power infrastructure and the implementation of national electrification schemes. The company remains positioned to benefit from the ongoing transition toward competitive bidding for transmission projects.
Key Risks
- Credit Risk. The company faces significant exposure to the financial health of state-owned power distribution companies, which may struggle with timely debt servicing.
- Regulatory Risk. Changes in government policies regarding power sector subsidies and tariff structures could impact the viability of financed projects.
- Interest Rate Risk. Fluctuations in interest rates may affect the company's net interest margins and the demand for new project financing.
- Concentration Risk. As a specialized lender to the power sector, the company is highly susceptible to cyclical downturns and structural shifts within the energy industry.
Start your research today
Unlock AI insights, financials, peers and live data on REC Ltd. and 5,000+ companies — free.
Key Metrics
REVENUE
₹59,169 Cr
TTM · consolidated
NET PROFIT
₹16,035 Cr
TTM · consolidated
EPS
₹60.77
TTM · consolidated
RETURN ON EQUITY
19.6%
TTM · consolidated
P/E
5.2x
Q1 FY27 · consolidated
NET PROFIT MARGIN
29.0%
Q1 FY27 · consolidated
DEBT TO EQUITY
1.7x
Q4 FY20 · standalone
Peers · Financial Institution
As of Q1 FY27