Revenue from operations declined 5% YoY to Rs 14,564 crore during the quarter under review, from Rs 15,334 crore in the corresponding quarter of the previous financial year.
Sequentially, REC’s net profit in Q4 declined 17% while revenue fell 3%. REC earned an interest income of Rs 14,119 crore in Q4 FY26 compared to Rs 14,560 crore in Q3 FY26 and Rs 14,947 crore in Q4 FY25.
The PSU company released its financial results for the fourth quarter ended March 31, 2026, post-market hours on Tuesday.
REC also announced a final dividend of Rs 1.55 per equity share for the financial year 2025-26, subject to approval by shareholders at the upcoming Annual General Meeting (AGM).
This is in addition to the interim dividend(s) of Rs 17 per equity share already declared during FY26 in four tranches, making the total dividend for the financial year Rs 18.55 per equity share. The final dividend post-approval will be paid to shareholders within 30 days from the date of declaration at the ensuing AGM.
Motilal Oswal on REC share price
Motilal Oswal reiterated its ‘Buy’ call on the shares of REC, increasing its target price to Rs 440 apiece, despite the drop in net profit and revenue. The latest target price implies an upside potential of more than 17% from the stock’s previous closing price of Rs 375.80 apiece on NSE.
The domestic brokerage noted that REC reported a subdued quarter, with the loan book exhibiting a modest growth of nearly 3% YoY. Disbursements continued to remain weak, and repayments moderated sequentially in Q4 FY26. A decline in yields was offset by lower funding costs, which helped keep spreads stable. Asset quality, however, continued to improve, with GNPA declining to 0.2% during the quarter under review.
RECL trades at 1x FY27E P/ABV, which is attractive, according to Motilal Oswal, which, however, cautioned that weak loan growth and pressure on margins remain key monitorables. It cut REC’s PAT estimates by 9% for FY27 and 11% for FY28 to account for lower margins and higher credit costs.
REC share price
REC shares have declined around 3% in one week, but gained over 17% in one month. The stock, however, has declined by over 13% in one year.
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In the longer term, the shares of the company rallied 183% in three years and 290% in five years. The state-run company has a market capitalisation of nearly Rs 45,842 crore.
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