REC's consolidated net profit declined by 21.23% year-on-year to ₹3,477.73 crore in the second quarter of fiscal year 2027 (Q2 FY27). This decrease contrasts with the ₹4,414.93 crore net profit recorded in the same quarter last year. Despite this drop, the company declared a second interim dividend for FY27, signaling confidence in its financial stability.
- REC's net profit fell 21.23% YoY to ₹3,477.73 crore in Q2 FY27.
- Interest income slightly increased by 0.5% YoY to ₹14,669.49 crore.
- The second interim dividend declared is ₹3.50 per equity share.
- Record date for dividend is October 30, 2026; payment by November 21, 2026.
- Market capitalization stood at ₹78,522.74 crore as of October 26, 2026.
What caused the decline in REC's net profit in Q2 FY27?
REC's consolidated net profit decreased by 21.23% compared to the same quarter last year. The report does not specify exact reasons for the decline, but such changes can result from variations in operational costs, interest expenses, or market conditions affecting the company's financial performance.
How did REC's interest income perform during this period?
REC's interest income showed a marginal increase of 0.5% year-on-year, rising to ₹14,669.49 crore in Q2 FY27 from ₹14,589.97 crore in Q2 FY26. This indicates a relatively stable income stream from the company's lending activities despite the net profit decline.
What dividend did REC declare for shareholders?
The board of directors declared a second interim dividend of ₹3.50 per equity share, with each share having a face value of ₹10. This dividend reflects the company's commitment to returning value to its shareholders even amid profit fluctuations.
When will shareholders receive the dividend payment?
REC fixed Friday, October 30, 2026, as the record date for determining eligible shareholders. The dividend payment is scheduled to be made on or before November 21, 2026.
What is REC's current market capitalization?
As of October 26, 2026, REC's total market capitalization was ₹78,522.74 crore, according to data from the National Stock Exchange (NSE). Market capitalization reflects the total market value of the company's outstanding shares and indicates its size in the stock market.
Frequently Asked Questions
Q: What does a decline in net profit mean for REC?
A: A decline in net profit means the company earned less profit compared to the previous year. This can affect investor confidence but does not necessarily indicate long-term problems.
Q: Why is the dividend important to shareholders?
A: Dividends provide shareholders with a return on their investment. Declaring a dividend shows the company's ability to generate cash and share profits with investors.
Q: How does REC's interest income impact its overall earnings?
A: Interest income is a major part of REC's revenue since it is involved in lending activities. Stable or increasing interest income can support profitability even if other areas face challenges.
