Highlights

• REC reported FY26 consolidated net profit of INR 3,37,508 lakh.
• The stock trades at a reported P/E ratio of 5.76.
• Shares have delivered triple-digit returns over the last three years.

REC Limited (NSE:RECLTD) was trading at INR 355.25 on 17 June 2026, down 0.36% from its previous close of INR 356.55. The stock opened at INR 357.50 and moved between an intraday high of INR 357.80 and a low of INR 354.30 during the session.

The company operates as a financial institution with a significant presence in infrastructure and power sector financing. REC is also a constituent of the NIFTY Next 50 index and remains one of the larger public sector financial entities listed on Indian stock exchanges.

Performance Remains Mixed Across Timeframes

REC's stock performance has been mixed over short-term periods but remains positive over longer horizons.

During the past week, the stock gained 1.79%, though it underperformed the NIFTY Next 50's return of 3.86%. Over the last month, REC advanced 2.66%, compared with the benchmark's gain of 3.67%.

On a year-to-date basis, the stock declined 3.44%, while the benchmark index gained 3.08%. Over the last year, REC fell 11.05%, compared with a 7.20% gain in the NIFTY Next 50. However, the longer-term picture remains significantly stronger. The stock has delivered returns of 132.67% over three years and 214.96% over five years, outperforming the benchmark during both periods.

Trading Activity and Market Capitalisation

REC witnessed trading volume of approximately 3.73 lakh shares during the session, generating traded value of around INR 13.25 crore.

The company currently has a market capitalisation of INR 93,492.62 crore, while its free-float market capitalisation stands at INR 44,235.21 crore.

The stock's impact cost of 0.03 indicates high liquidity. Deliverable quantity accounted for 50.87% of traded volume.

Annualised volatility stood at 40.69%, reflecting moderate to elevated price fluctuations over the past year.

FY26 Financial Results

For the financial year ended 31 March 2026, REC reported audited consolidated total income of INR 14,58,339 lakh. Consolidated profit before tax stood at INR 4,41,454 lakh, while net profit reached INR 3,37,508 lakh. Earnings per share were reported at INR 12.69.

On a standalone basis, total income stood at INR 14,40,630 lakh. Profit before tax was INR 4,39,709 lakh, while net profit reached INR 3,36,230 lakh. Standalone earnings per share were reported at INR 12.64. The results indicate continued profitability across both standalone and consolidated operations during FY26.

Valuation Remains a Key Focus

REC is currently trading at a reported price-to-earnings ratio of 5.76, while the adjusted P/E ratio stands at 5.75.

The relatively low valuation multiple remains one of the factors monitored by investors assessing financial institutions. Market participants generally evaluate such companies based on loan growth, asset quality, profitability, funding costs and sector exposure.

Trading Between Annual High and Low

The stock touched a 52-week high of INR 409.80 on 27 June 2025 and a 52-week low of INR 304.05 on 30 March 2026. At the current market price of INR 355.25, REC is trading above its annual low but remains below the peak recorded during the last twelve months. The stock's recovery from the March low has narrowed part of the decline witnessed during the previous year.

Financial Sector Outlook

Financial institutions operating in infrastructure financing are influenced by credit demand, interest rates, project execution and economic activity.

Companies in this segment also monitor asset quality, borrowing costs and regulatory developments. Changes in these factors can directly affect profitability and growth prospects.

As infrastructure investment remains an important component of economic development, sector participants continue to track lending activity and funding requirements.

Bull Case

REC reported FY26 consolidated net profit of INR 3,37,508 lakh and trades at a reported P/E ratio of 5.76. The stock has also delivered returns of 132.67% over the past three years.

Bear Case

The stock has underperformed the NIFTY Next 50 over one year and remains below its 52-week high. Changes in lending conditions could affect growth trends.

Key Risks

• Rising interest rates may affect borrowing demand.
• Asset quality deterioration could impact profitability.
• Regulatory changes may influence lending operations.
• Infrastructure project delays could affect loan growth.

Summary

REC reported FY26 consolidated net profit of INR 3,37,508 lakh and earnings per share of INR 12.69. While the stock has delivered strong returns over three-year and five-year periods, recent performance has lagged its benchmark index. Trading at INR 355.25, REC remains below its 52-week high of INR 409.80 but above its annual low, with investors continuing to monitor valuation, profitability and lending trends.

FAQs

Q: What was REC's consolidated net profit in FY26?
A: REC reported consolidated net profit of INR 3,37,508 lakh for FY26.

Q: What is REC's current P/E ratio?
A: REC is trading at a reported price-to-earnings ratio of 5.76.

Q: How has REC performed over the last three years?
A: The stock has generated returns of approximately 132.67% over the three-year period.