REC Limited (RECLTD) Q2 Results FY27 Preview: Date, Time, Expectations & Key Things To Watch

REC Limited, the Maharatna CPSE and India's largest power-sector financier, lends across the power value chain — generation, transmission, distribution and renewables — with a loan book of Rs. 5.90 lakh crore. This quarter's print will speak to whether loan growth can recover from prepayment drag and whether NIM, at 3.34% in Q1 FY27, can move back toward management's 3.5-3.75% band, alongside the REC-PFC merger clock and the 2nd interim dividend decision.

REC Limited Q2 Results Date and Time

The Board of Directors will meet on October 26, 2026, to approve the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026, and to consider the 2nd Interim Dividend for FY 2026-27.

The Board will consider the 2nd Interim Dividend for FY 2026-27 at the October 26, 2026 meeting. This follows the 1st Interim Dividend of Rs. 4.25 per share, which had a record date of July 31, 2026. FY26 total dividend stood at Rs. 18.55 per share (payout Rs. 4,884.63 crore).

What to expect from REC Limited's Q2 FY27 results

The quarter's central question is whether REC can show a path back into its guided bands after Q1 FY27 NIM of 3.34% came in below the 3.5-3.75% maintain-band and FY26 loan growth of +2.96% missed the 11-12% guidance. The funding backdrop is mixed: short-term CP/CD rates moderated significantly in August-September amid a system liquidity surplus that averaged Rs. 5.9 lakh crore since the August MPC, but G-sec yields hardened from mid-August through September, corporate bond spreads hardened in September, and the repo was hiked 25 bps to 5.5% on October 7 — after the quarter closed — with the stance moving to calibrated tightening. REC's own marginal funding print brackets the pressure: the September tokenised bond priced at a 7.30% coupon against a 6.82% average coupon across its 196 outstanding bonds, while lending yield stood at 9.55% and the Q1 FX loss of Rs. 911.29 crore (foreign borrowings 99% hedged) is a swing factor to watch repeating. Asset quality enters as a clear tailwind, with gross credit-impaired assets at 0.23% and net at 0.11% at June 30, 2026, and debt-equity down to 5.52x. On growth, the demand backdrop is supportive — NBFC credit grew 14.9% YoY in July 2026, H1 FY27 added 24,558 MW of renewables including 20,791 MW of solar, and September's power shortages underscore state-sector funding needs — but the RBPF book has contracted to Rs. 19,016 crore (3% of loans) and utility-scale solar additions decelerated through 2026 from 12.12 GW in Q1 to 5.4 GW in Q3. The call will also be watched for the REC-PFC merger execution, with the NCLT filing clock running on the six-month validity of the October 19, 2026 exchange letters toward the April 1, 2027 appointed date.

Key Things To Watch

Loan growth vs guidance: FY26 guidance was 11-12%; actual FY26 growth was +2.96%.

• Whether management resets the FY27 loan-growth target or reaffirms the open-ended '11% to 12% in the coming years' guidance off the Rs. 5.90 lakh crore June 2026 base
• Whether the RBPF book (Rs. 19,016 crore, 3% at Mar-26) stabilizes or keeps shrinking after the ~19% decline flagged by analysts
• Disbursement pace against the guided 'around 9% to 10%' for coming years

NIM and interest spread vs guided bands: Q1 FY27 NIM of 3.34% is below the 3.5-3.75% band, and FY26 spread of 2.62% is below the 2.75-3.5% band.

• The path back into the NIM band, with lending yield at 9.55% and cost of funds at 7.34% (FY26) amid hardened September corporate-bond spreads and the October 7 repo hike
• Renewables mix impact — the renewables book at Rs. 78,596 crore is 13.32% of loans — on the yield stack

Performance vs Guidance Tracking

• Loan growth — 11% to 12% for FY26 — not met (actual +2.96%)
• NIM — maintain 3.5% to 3.75% — Q1 FY27 at 3.34%, below band
• Interest spread — 2.75% to 3.5% — FY26 at 2.62%, below band
• Stressed assets (Hiranmaye & Sinnar) — resolution by Q4 FY26 — substantially delivered; 9 assets (Rs. 6,264 crore) resolved in FY26
• Loan book — Rs. 10 lakh crores by 2030 — progress update pending; renewables share target 30% (Rs. 3 lakh crores) by 2030

REC-PFC merger execution

• NCLT filing within the six-month validity of the October 19, 2026 BSE/NSE observation letters; scheme swaps 88 PFC shares for every 100 REC shares with an appointed date of April 1, 2027
• Remaining conditions: RBI approval conditions (NOC received October 15, 2026, subject to conditions), settlement of outstanding dues by one listed entity, and demat-only issuance

Stressed assets, Kaleshwaram and governance

• Whether the remaining 2 NCLT projects (Rs. 1,381 crore, 51% provision) and 1 outside-NCLT project (Rs. 4 crore, 54% provision) were resolved, and any new FY27 resolution targets
• Whether the residual Kaleshwaram amount (~Rs. 5,600 crore of the ~Rs. 17,000 crore total outstanding, after Rs. 11,400 crore received) came through, given the exposure 'has gone into some kind of litigations also'
• Status of the waiver request on the Rs. 10,77,340-per-exchange NSE/BSE fines that accrue daily, and Board/committee composition restoration after the September 22, 2026 independent director cessations