Slides
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Performance Highlights 9M FY 2025-26 REC Limited A Maharatna Company INVESTOR PRESENTATION
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Table of Contents 01 REC Overview Financial Highlights Operational Performance Asset Quality Shareholders Outlook ESG 02 03 04 05 06
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REC OVERVIEW 01
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REC Journey 1998 2003 2008 1969 2010 2017 2019 2021 2022 2024 1969: Journey began to develop power infrastructure in rural areas 1998: Registered as NBFC with RBI 2023 2003: Mandate broadened to financing all power segments 2008: Conferred Navratna status, Floated IPO subscribed 27 times 2010: Conferred IFC status by RBI 2017: First Indian PSU to issue USD Green Bonds on London Stock Exchange 2019: As Nodal Agency, achieved 100% Household Electrification 2021: Appointed as Nodal Agency for RDSS 2022: Conferred ‘Maharatna’ status, highest status for a PSU. Forayed into Infrastructure sector 2023: Largest Green Bond issuance of USD 750 million by South & South-East Asian issuer, first post India’s G20 Presidency 2024: Appointed as National programme implementing agency for PM Surya Ghar Muft Bijli Yojana, Maiden Yen Bond issuance of JPY 61.1 Bn and USD Bond issuance of $500 Mn 2025 2025: First Indian Public Sector NBFC compliant with ISO 31000 Risk Management Framework
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Healthy Asset Quality with adequate Provision Coverage Ratio Major player in Renewable Energy segment and creation of India’s Green Energy Corridor Nodal Agency for major Govt. of India’s Power Sector Programs Strategic player in the Indian Power and Infrastructure & Logistics Sector Highest Domestic Rating of “AAA” International Ratings of “Baa3” & “BBB-” at par with Sovereign Rating Key Strengths
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Government’s Trusted Arm Rooftop Solar (RTS) Programme Revamped Distribution Sector Scheme (RDSS) Late Payment Surcharge (LPS) Consumer Services Ratings of Discoms (Operational) National Electricity Fund (NEF) Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) Other Schemes
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Conventional Generation Transmission Renewable Energy Logistics Infrastructure Distribution REC Diversified Portfolio
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Best Financial Services Company by Dun & Bradstreet Best Legal Technology Implementation 2025 in 7th Future of Legal & Compliance Summit Emerging Technologies Award 2025 For best use of Emerging Technologies by ‘Governance Now’ Compliance Innovation and Compliance Team of the Year 2025 in 7th Future of Legal & Compliance Summit Technology Excellence Award for Generative AI Implementation Awards and Accolades in FY26 Best Infra Projects with Green Financing: Mumbai Metro by ET Infra Leadership Awards 2025 Sustainability Icon Awards 2025 For Excellence in ESG initiatives Risk Management Leader Award for ‘ISO 31000 for Risk Management’ in 5th PSU Transformation Awards 2025 Award for ‘Cyber Defense & Resilience’ in 5th PSU Transformation Awards 2025
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FINANCIAL 02 HIGHLIGHTS
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Capital Adequacy Ratio at 24.26% (Tier-I: 22.26% & Tier-II: 2.00%) Loan Book ₹5.82 lakh crore vs ₹5.66 lakh crore Net Credit Impaired Assets 0.20% vs 0.74% Net Interest Income ₹15,677 crore vs ₹14,191 crore (10% growth) Highest Net Worth ₹86,262 crore vs ₹76,502 crore (13% growth) Key Financial Highlights for 9M FY26 vs 9M FY25 Highest Ever 9M Profit ₹12,920 crore vs ₹11,477 crore (13% growth) Total Income ₹44,781 crore vs ₹40,805 crore (10% growth)
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(₹ in crore) Particulars 9M FY26 9M FY25 Q3 FY26 Q3 FY25 12M FY25 Interest Income on Loan assets (including DIPI) 43,000 39,569 14,314 13,771 54,321 Less: Finance Costs (including fee & comm) 27,323 25,378 9,246 8,841 34,149 Net Interest Income 15,677 14,191 5,068 4,930 20,172 Profit After Tax 12,920 11,477 4,043 4,029 15,713 Total Comprehensive Income 11,800 11,010 4,719 4,732 14,196 Revenue & Profits
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Particulars 9M FY26 9M FY25 12M FY25 Yield on Loan Assets (%) 10.03 10.09 10.05 Cost of Funds (%) 7.30 7.15 7.11 Interest Spread (%) 2.73 2.94 2.94 Net Interest Margin (%) 3.52 3.64 3.63 Return on Net Worth (%) 21.02 21.07 21.46 Interest Coverage Ratio (Times) 1.60 1.57 1.58 Debt Equity Ratio (Times) 5.78 6.38 6.29 Key Ratios
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OPERATIONAL 03 PERFORMANCE
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Percentages for 9M FY26 (₹ in crore) Discipline-wise 9M 12M FY 26 FY 25 FY 25 Conventional Generation 1,21,297 75,673 89,632 Renewable Energy 64,652 79,135 1,05,259 Transmission 23,628 14,786 17,559 Distribution 1,07,243 49,665 67,481 Infra & Logistics 9,784 42,280 43,239 Others 6,750 10,275 14,009 Total Sanctions 3,33,354 2,71,814 3,37,179 Sanctions – Composition Distribution 32% Others 3% I&L 3% Renewable 19% Conventional Generation 36% Transmi ssion 7% 23% growth in Total Sanctions Y-o-Y Highest Ever 9M Sanctions
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Percentages for 9M FY26 (₹ in crore) Discipline-wise 9M 12M FY 26 FY 25 FY 25 Conventional Generation 17,672 19,994 27,478 Renewable Energy 19,522 17,612 26,186 Transmission 7,261 4,427 6,064 Distribution 1,08,404 78,679 1,01,777 Infra & Logistics 5,865 17,057 18,621 Others 6,734 7,878 11,059 Total Disbursements 1,65,458 1,45,647 1,91,185 Disbursements – Composition Conventional Generation 11% Trans- mission 4% Others 4% Renewable 12% Distribution 66% I&L 3% 14% growth in Total Disbursements Y-o-Y Highest Ever 9M Disbursements
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Percentages as on 31.12.2025 (₹ in crore) Discipline-wise As on December 31, 2025 December 31, 2024 March 31, 2025 Amount % Amount % Amount % State 4,96,854 85 4,98,444 88 4,94,578 87 Private 84,933 15 67,177 12 72,305 13 Total 5,81,787 100 5,65,621 100 5,66,883 100 Conventional Generation 1,51,083 26 1,53,828 27 1,55,071 28 Renewable Energy 70,429 12 52,394 9 57,994 10 Transmission 46,035 8 47,514 9 46,743 8 Distribution (excluding RBPF) 2,17,040 37 1,80,186 32 1,77,525 31 Infra & Logistics 56,476 10 68,674 12 69,401 12 Others 19,217 3 14,987 3 17,048 3 Sub-Total (excluding RBPF)* 5,60,280 96 5,17,583 92 5,23,782 92 RBPF 21,507 4 48,038 8 43,101 8 Total 5,81,787 100 5,65,621 100 5,66,883 100 Stage-III Assets 5,123 11,046 7,653 Outstanding Loan Assets Conventional Generation 26% Trans- mission 8% Others 3% Renewable 12% Distribution 41% I&L 10% Loan Assets (excl. RBPF & Stage-III loan assets) grown at robust rate of 10% Y-o-Y Stage-III Loan Assets reduced significantly by 54% Y-o-Y Loan Assets grew from ₹5,65,621 crore to ₹5,81,787 crore Y-o-Y *Including Stage III loan assets
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(₹ in crore) Outstanding Borrowings Particulars December 31, 2025 December 31, 2024 March 31, 2025 (A) Domestic Borrowings Bonds 2,77,096 2,60,079 2,65,670 Term Loans 74,906 70,457 56,550 Commercial Papers 3,000 - - Sub Total (A) 3,55,002 3,30,536 3,22,220 (B) Foreign Currency Borrowings External Commercial Borrowings 1,32,946 1,16,180 1,22,857 FCNR (B) Loans 10,881 42,879 43,182 Sub Total (B) 1,43,827 1,59,059 1,66,039 Grand Total (A+B) 4,98,829 4,89,595 4,88,259 Borrowing Profile More than 99% of the total foreign currency borrowings are hedged. Bonds 55% Term Loans 15% Others 1% External Commercial Borrowings 27% FCNR (B) Loans 2%
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ASSET QUALITY 04
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7.24% 6.59% 4.84% 4.45% 3.42% 2.71% 1.35% 0.88% 3.79% 3.32% 1.71% 1.45% 1.01% 0.86% 0.38% 0.20% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Gross Credit-impaired Assets% Net Credit-impaired Assets% 47.66% 49.64% 64.59% 67.40% 70.64% 68.45% 71.73% 45% 55% 65% 75% 76.96% Continuously Improving Asset Quality Increasing Provision Coverage Ratio Asset Quality and provisioning coverage Dec-25
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Outstanding Loan Assets Stage I Stage II Stage III Total State Sector 4,85,304 11,550* - 496854 Private Sector 75,415 4,395 5123 84933 Total Outstanding 5,60,719 15,945 5123 581787 % of Total Loan Assets 96.38% 2.74% 0.88% 100% Provisioning 5,126 220 3,943 9,289 Provisioning (%) 0.91% 1.38% 76.96% 1.60% Net Assets 5,55,593 15,725 1,180 5,72,498 Loan Portfolio and ECL provisioning (₹ in crore) In addition to the above provisioning, Reserves available in the form of Statutory Reserve u/s 45-IC of RBI Act and Reserve for Bad & Doubtful debts u/s 36(1)(viia)(c) of the Income Tax Act, 1961 amounting to ₹16,556 crore and ₹671 crore respectively. * During 9M FY26, an amount of ₹15,407 crore has been recovered from Kaleshwaram Irrigation Project Corporation Limited (Stage-II Asset) (as on Dec 31, 2025)
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Credit Impaired Assets – Resolution Status Two stressed assets having outstanding loan of ₹2,497 crore have been resolved during 9M FY26 Resolution status of Credit Impaired Assets Under NCLT 8 projects worth ₹5110 crore in NCLT 77% provision Outside NCLT 2 projects worth ₹13 crore outside NCLT 27% provision
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SHAREHOLDERS OUTLOOK 05
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Dividend History ▪ Dividend adjusted for Bonus in the ratio of 1:3 in Aug 2022. ▪ Actual dividend 110.00%, 110.00%, 127.10% and 153.00% pre bonus for the year FY19, FY20, FY21 & FY22 82.50% 82.50% 95.33% 114.75% 126.00% 160.00% 180.00% 50% 75% 100% 125% 150% 175% 200% FY19 FY20 FY21 FY22 FY23 FY24 FY25 Dividend Payout History Consistently High Dividend paying company - Total dividend of ₹13.80 per share for 9M FY26 Third Interim dividend for Q3 FY26 of ₹4.60 (46%) per share
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Shareholders Outlook Promoter – PFC Limited 52.63% Foreign Institutions 16.46% MFs/ AIFs/ VCFs/ PFs 10.97% Banks/ FIs/ Insurance Cos 5.26% Non- Institutional 14.63% Govt/ Govt PSUs 0.05% Earnings per Share (EPS) - ₹49.07 for 9M FY26 Book Value per Share (BVPS) - ₹327.60 for 9M FY26
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ESG AT REC 06
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ESG at REC Limited 2023 JAN Formalized ESG implementation by adopting board approved ESG policy. REC ESG Policy 2023 JUNE Assigned company wide ESG targets for quarterly compliance. ESG Targets 2024 APR GHG emission assessment across REC 5 new ESG related policies introduced ESG Gap Assessment 2024 AUG Published 1st ever ESG report referenced to GRI format. Submitted CDP& S&P CSA response ESG Report 2024 OCT REC committed to Net Zero in Scope 1 & 2 emissions by 2035 REC Net Zero Plan 2025 JAN 2025 APR 2025 AUG ESG Incentivization Board approved incentivization for ESG Compliant Borrowers 2025 DEC REC has secured the highest score (80/100) among 505 companies in the NSE ESG Ratings Top ESG Ratings in the Country Commenced ESG Assessment of Private Borrowers and Suppliers Stakeholders ESG Assessment Green Power for operations 100% Green Power for REC Corporate Office
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REC’s Contribution for Clean Energy Projects ₹ In Crore Renewable Loan Book Grows >3.7x in 5 Years 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 18,824 27,095 38,971 57,994 70,429 FY22 FY23 FY24 FY25 FY26 Solar 28,835 Wind 11,366 E-Mobility 1,498 Large Hydro 10,595 Small Hydro 469 Hybrid 5,530 PSP 10,181 Other 1,955 Renewable Loan Book ₹70,429 Crore as on 31.12.25 ₹ In Crore
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ESG at REC Limited REC’s ESG Rating S. No. Rating Agency ESG Score of REC ESG Score Grading 1 NSE 80 (Leadership) Top amongst 505 Companies of India 0 -100 || 100 being maximum 2 Morningstar Sustainalytics 15.7 (Low Risk) Negligible Risk: 0-10 || Low Risk: 10-20 || Medium: 20-30 || High Risk: 30-40 || Severe Risk: 40+ 3 CRISIL 64 (Strong) Weak (0-40) || Below average (41-50) || Adequate (51-60) || Strong (61-70) || Leadership (71-100) 4 Stakeholder Empowerment Services (SES) 79.3 (Medium Risk) 0-60 High Risk || 60-80 Medium Risk || 80-100 Low Risk 5 S&P Global 39 (Above Industry Average) Below the industry average || Above Industry Average 6 MSCI BB (Average) Laggard: CCC, B || Average: BB, BBB, A || Leader: AA, AAA 7 CDP B (Management Level) D-/D, C-/C, B-/B, A-/A
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Highlights of ESG Performance Environmental ~64 GW Total RE Capacity Sanctioned by REC ₹70,429 Cr. RE Loan Book Zero Discharge REC Corporate Office STP treats 100% wastewater 97% Conversion of Conventional office fleet to EV/Hybrid 100% Green Power for REC Head Quarters Governance 100% Training on NGRBC and ESG to BoD & KMP 10,047 Training man days to Borrowers as part of capacity building through RECIPMT, IIT’s & IIM’s 140 Training man days on ethics, code of conduct 12.5% Women ratio in the Board Awards • Sustainability Icons Award 2025 for Excellence in ESG Initiatives • SKOCH ESG Award 2025 for ‘Corporate Net Zero Transition’ • 5th PSU Transformation Award 2025 (Gold) in the ‘Green PSU’ category for ESG Leadership & Net-Zero Operations Social Zero Complaints on Human Rights & POSH Zero Instances of Data Breaches 338 Cr. CSR Budget for FY 2025-26 6.08% Employee Turnover Ratio 14.65% Women Employee Ratio 44 Graduate Apprentice supported (Nos)
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Join us: @reclindia Investor Relations/ 54EC & Other Bond Queries : Investorcell@recl.in Equity Share Queries: Complianceofficer@recindia.com Contact Information https://recindia.nic.in/ Annual Report: https://recindia.nic.in/annual-reports Financial Results: https://recindia.nic.in/financial-results ESG Report: https:recindia.nic.in/sustainability-report Investor Announcements: https://recindia.nic.in/notice Recent reports relevant to power sector : https://powermin.gov.in/en/content/ annual-reports-year-wise-ministry