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REC Records Strong Revenue Growth but Faces Decline in Renewable Loan Approvals

REC Limited, a public infrastructure finance company in India, has reported a solid performance for the third quarter (Q3) of the financial year (FY) 2025, despite a significant decline in renewable energy loan approvals. The company achieved a total income of Rs 14,286 crore, with earnings per share (EPS) increasing to Rs 15.48 in Q3 FY 2024.

However, the renewable energy sector faced challenges as loan approvals for renewables fell 72% YoY, amounting to Rs 20,728 crore for the quarter, reflecting a 36?crease YoY. Despite this, renewable energy loans showed strong disbursement growth, with an impressive 57% YoY increase, reaching Rs 6,314 crore.

The distribution sector, which received 60% of total loan disbursements in Q3 FY 2025, saw the highest share. The company’s total loan book grew by 14% YoY to Rs 5,66,000 crore, and REC’s net credit-impaired assets decreased slightly to 0.74% from 0.82% YoY.

For the first nine months (9M) of FY 2025, REC’s total income rose 18% YoY to Rs 41,000 crore. However, the company saw a 17?crease in loan approvals during the period, totaling Rs 2,72,000 crore, reflecting a 19% YoY increase. Renewable energy disbursements rose sharply by 79% YoY to Rs 17,612 crore.

Overall, while REC Limited has demonstrated strong revenue growth and profit increases, the decline in renewable energy loan approvals may signal challenges in the sector, which could impact future growth. However, the rise in renewable loan disbursements suggests that REC continues to support clean energy projects, albeit at a lower approval rate than in the past.