REC Limited sells subsidiary as merger clearance arrives for REC stock

Published on 10/19/2026 at 02:06 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

REC sold a subsidiary on October 16, 2026. REC stock posted Q1 fiscal 2027 revenue of INR 144.35 billion and profit of INR 41.93 billion.

Capital allocation and operating figures

REC completed the sale of a project-specific subsidiary on October 16, 2026.
Q1 fiscal 2027 revenue reached INR 144.35 billion, while net profit was INR 41.93 billion.
Operating margin rose to 36.30 percent in Q1 fiscal 2027 from 30.20 percent in the preceding quarter.

REC, INE020B01018, Illustration mit AI erstellt.

REC Limited (INE020B01018) announced the sale of a project-specific subsidiary on October 16, 2026, one day after disclosing regulatory clearance for its proposed merger with Power Finance Corporation, according to Sharpely. The sequence points to continued portfolio simplification as the power-sector lender concentrates on its core financing business.

Two corporate actions in October

The October 16 announcement covered the sale and transfer of a project-specific special-purpose vehicle. On October 15, REC disclosed receipt of a No Objection Certificate from the Reserve Bank of India for the proposed merger with Power Finance Corporation, while the same announcement list also records a September 28 board response to exchange fines, according to Sharpely.

What does Q1 margin show?

The latest operating figures show a sharper sequential margin profile. In Q1 fiscal 2027, revenue was INR 144.35 billion and net profit reached INR 41.93 billion; operating margin was 36.30 percent, compared with 30.20 percent in the preceding quarter, according to StockFin.ai. The comparison matters because revenue declined 0.90 percent quarter over quarter, yet the operating margin recovered by 6.10 percentage points.

Chronology gives the broader picture

On September 7, 2026, REC announced a credit-rating revision to A- with a Stable Outlook. On September 28, 2026, its board addressed exchange fines linked to listing requirements. On October 16, 2026, REC disclosed the sale and transfer of a project-specific subsidiary, according to Sharpely.

Valuation remains tied to lending scale

REC finances power, logistics and infrastructure projects through long-term, medium-term and short-term loans. Its financial statements show fiscal year 2026 revenue of INR 595.69 billion and profit after tax of INR 163.08 billion, while the power-sector financing segment accounted for 100.00 percent of reported revenue, according to Sharpely. That concentration makes the merger process, subsidiary sales and governance disclosures material to the investment case.

Market value and listing details

REC had a market capitalization of INR 810.5 billion as of October 16, 2026. The stock is listed on the NSE under the symbol RECLTD and is included in the Nifty Financial Services index, according to NSE India.