REC board approves borrowing plan for FY26 of ₹1.7 lakh crore

REC Ltd on Wednesday, March 26, said its board has approved the borrowing plan for the financial year 2026 of ₹1,7 lakh crore.

This includes domestic bonds, debentures, capital gains tax exemption bonds, rupee term loans from banks, NBFCs, etc, and external commercial borrowings worth ₹1.55 lakh crore; short term loan from banks, NBFCs etc of more than six months, worth ₹10,000 crore and commercial papers worth ₹5,000 crore.

Earlier this week

, global brokerage firm CLSA maintained its "high conviction outperform" rating on the REC stock with a price target of ₹525 crore per share.

CLSA added the stock to its "high conviction outperform" list on March 3, from its earlier rating of "outperform".

CLSA said 55% of REC's sanctions are undisbursed and this pool alone implies double-digit growth. It said the company has not witnessed any slippage for more than two-and-a-half years and the outlook on the new disbursals is better. It said the company has the best-in-class delivery and a strong track record of senior management.

REC's loan growth stood at 13.5% during the October-December period, while the management had guided for that figure for the full year to be between 15% to 17%.

Net profit for the quarter increased by 23.2% from last year to ₹4,029 crore, while Net Interest Income stood at ₹4,855 crore, which is a growth of 17% from the year-ago quarter. Considering total income, the NII figure comes up to ₹4,930 crore. However, the Net Interest Income was below expectations at ₹5,070 crore.

REC shares were trading 1.98% lower at ₹434 apiece at 11.50 am. The stock has gained nearly 15% in the past month.f

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