REC Q2 net profit falls 9% to ₹4,415 crore, NII down 16%; declares ₹4.60 dividend

State-owned Rural Electrification Corporation Ltd (REC) on Friday (October 17) reported a 9.3% year-on-year decline in consolidated net profit to ₹4,415 crore for the second quarter of FY26, compared to ₹4,870 crore in the same period last year.

Net interest income (NII) fell 16.3% year-on-year to ₹6,022 crore from ₹7,196.8 crore. The company’s board of directors declared a second interim dividend of ₹4.60 per equity share (of face value ₹10 each) for the financial year 2025–26. The record date for determining eligible shareholders is Monday, October 27, 2025, and the dividend will be paid or dispatched on or before November 14, 2025.

In a separate filing, REC said its wholly owned subsidiary, REC Power Development and Consultancy Ltd (RECPDCL), has completed the sale and transfer of two project-specific subsidiaries on October 17, 2025, after receiving the necessary consideration from the successful bidders selected through a tariff-based competitive bidding process.

Also Read: REC Q4 results: Maharatna PSU NII jumps 38% YoY; declares ₹2.60 final dividend

The transferred entities include Ananthapuram II Power Transmission Limited, which has been acquired by Shivalaya Construction Ltd, and SRWR Power Transmission Ltd, which has been acquired by Power Grid Corporation of India Ltd. Each subsidiary comprised 50,000 equity shares held by RECPDCL, which have been transferred at par value along with all assets and liabilities.

The consideration received for the transfer of Ananthapuram II Power Transmission Limited amounted to ₹7.70 crore (including taxes), while ₹10.63 crore (including taxes) was received for SRWR Power Transmission Limited. Both transactions also included reimbursement of expenses.

REC clarified that neither of the buyers belongs to its promoter or promoter group, and the transactions do not qualify as related party transactions. The sale was executed through Share Purchase Agreements (SPAs) signed on October 17, 2025, and is not in the nature of a slump sale.

Also Read: REC shares fall after PSU cuts AUM growth guidance for FY26

Shares of REC Limited ended at ₹374.90, down by ₹2.60, or 0.69%, on the BSE.Read about our editorial guidelines and ethics policy