REC Ltd. share price target

Rural Electrification Corp’s (REC) 1QFY27 PAT declined ~7% YoY to INR41.5b (inline). NII in 1QFY27 declined ~2% YoY to ~INR54.4b (inline).

Rural Electrification Corp’s (RECL) 4QFY26 PAT declined ~21% YoY to INR33.6b (23% miss). PAT for FY26 grew ~3% YoY to ~INR163b. NII in 4QFY26 declined ~16% YoY to ~INR51.7b (in line).

Rural Electrification Corp’s (RECL) 2QFY26 PAT grew ~10% YoY to INR44.3b (in line). PAT in 1HFY26 grew 19% YoY and we expect PAT in 2HFY26 to grow by 13% YoY.

Rural Electrification Corp’s (RECL) 1QFY26 PAT grew ~29% YoY to INR44.5b (~8% beat). NII grew ~19% YoY to ~INR55.7b (in line).

REC reported a healthy Q1 with its loan assets growing 3% QoQ despite a seasonally weak quarter. Calculated credit cost (annualised) was negative 43bps with the restructuring of the TRN Energy account, which led to an ECL reversal of INR 2.7bn. NIMs and spreads were higher in Q1 vs. FY25 levels.

REC reported a soft quarter, with moderating growth and disbursement led by higher repayments (including prepayments) and NPA resolutions, while margin and asset quality were stable.

Rural Electrification Corp (RECL)’s 3QFY25 PAT grew ~23% YoY to INR40.3b. NII grew ~20% YoY to ~INR51.3b. Other income rose ~260% YoY to~INR2b.

REC reported a satisfactory quarter in terms of margins, credit cost, and asset quality, while growth in Q3 was a tad below expectations on account of higher repayment and resolution of NPAs; however, disbursement remained strong.

We recommend a BUY on the stock with a target price of Rs 530/share, implying an upside of 11% from the CMP.

Asset quality continued to remain under pressure as Gross non-performing assets (NPA) ratio increased by 97 bps QoQ to 8.1% in Q1FY19. However, RECL had to make incremental provisions of Rs5,800cr under IND-AS, consequently, provision coverage ratio (PCR) improved by 2685 bps QoQ to 47.4%. It also helped the company to improve Net NPA ratio by 141 bps sequentially to 4.3%. The company also provided Rs1,700cr against standard private exposure which provides further comfort. However, with ~60% of private sector marked as stress assets, we believe that the company's asset quality will improve gradually...

Asset quality deteriorated significantly as Gross/Net non-performing asset (NPA) ratio increased by 45/37 bps QoQ to 3.0%/2.0% in Q3FY18 mainly led by slippages of Lanco Anpara where it has exposure of ~Rs1,250cr. However, gross restructured assets declined by 9% QoQ following upgrade in public sector unit (PSU). As per management, some more PSU restructured accounts are likely to get upgraded in future. However, given the uncertainty surrounding private restructured assets (Rs12,644cr), we expect the company's...

Rural Electrification Corporation Ltd Q3FY18 results comment Operating Income increased by 1.84% to Rs. 5470.08 Cr in Q3FY18 when compared to the previous quarter. On the other hand, it fell by 1.84% when compared with Q3FY17.

Rural Electrification Corporation Ltd Q2FY18 results comment Operating Income fell by 1.69% to Rs. 5371.05 Cr in Q2FY18 when compared to the previous quarter. Also, it decreased by 6.69% when compared with Q2FY17.

Q1FY18 was subdued marked by 15 bps QoQ decline in margin to 4.4% and marginal deterioration in asset quality. GNPAs increased ~19 bps QoQ at 2.6% and coverage ratio remained flat at ~34%. PAT was lower than expected at Rs 13 bn (down 8.4% YoY) due to lower NII (down ~9% YoY) and higher provisions.

Operating Income decreased by 4.45% to Rs. 5463.23 Cr in Q1FY18 when compared to the previous quarter Operating Income decreased by 4.45% to Rs. 5463.23 Cr in Q1FY18 when compared to the previous quarter

Q4FY17 PAT at Rs 13bn (+14% YoY) was below estimates. NII was flat YoY buoyed by other income (~3x YoY) and lower opex (down 44% YoY).

Q4FY17 PAT at Rs 13bn (+14% YoY) was below estimates. NII was flat YoY buoyed by other income (~3x YoY) and lower opex (down 44% YoY).

Operating Income grew by 2.59% to Rs. 5717.39 Cr in Q4FY17 when compared to the previous quarter Operating Income grew by 2.59% to Rs. 5717.39 Cr in Q4FY17 when compared to the previous quarter

Buy Rural Electrification Corporation Ltd at CMP Rs. 154 and add on dips to Rs. 135-139 for the target of Rs. 184.

Rural Electrification Corporation Limited (REC), a NAVRATNA Central Public Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969 under the Companies Act 1956. Its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them. REC provides loan assistance to SEBs/State Power Utilities for...