State-run infrastructure financier REC Ltd. reported a 22% decline in consolidated net profit to ₹3,375.08 crore in Q4 FY26, impacted by lower interest income, even as it posted its highest-ever annual profit of ₹16,308.17 crore for the full financial year.

The company had reported a net profit of ₹4,309.98 crore in the year-ago quarter, according to an exchange filing. The decline in quarterly earnings comes amid a moderation in income and a rise in expenses during the January–March period.

Total income for the fourth quarter fell to ₹14,583.39 crore from ₹15,348.37 crore a year earlier. Interest income — a key revenue driver declined to ₹14,119.11 crore from ₹14,947.26 crore in the corresponding quarter last fiscal, reflecting pressure on core earnings.

At the same time, expenses rose to ₹10,168.85 crore, compared to ₹9,858.48 crore in Q4 FY25, further weighing on profitability.

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Despite the quarterly dip, REC maintained growth momentum at the full-year level. Net profit for FY26 rose to ₹16,308.17 crore from ₹15,884.23 crore in FY25, while total income increased to ₹59,628.35 crore from ₹55,105.20 crore, supported by higher interest earnings.

Interest income for the full year climbed to ₹57,860.49 crore, up from ₹55,105.20 crore in FY25, indicating sustained growth in lending activity.

Highest-ever annual net profit despite challenging geopolitical conditions

The company in a statement said it has delivered its highest-ever annual net profit despite challenging macroeconomic conditions and geopolitical uncertainty, underscoring resilience in its business model.

REC’s loan book also expanded during the year. The company reported an increase of around ₹17,000 crore, taking the total loan book to an all-time high of ₹5.84 lakh crore as of March 31, 2026.

The renewable energy segment continued to see strong traction, with the loan book rising 30% to ₹75,347 crore, reflecting increased financing in clean energy projects.

Operational activity also remained robust. Total sanctions rose 21% year-on-year to ₹4,09,097 crore, while disbursements increased 10% to ₹2,11,189 crore, indicating sustained credit demand in the infrastructure sector.

The company’s net worth strengthened by 9% to ₹84,290 crore, compared to ₹77,638 crore a year earlier, supporting its balance sheet expansion.

The Board has recommended a final dividend of ₹1.55 per equity share, taking the total dividend payout for FY26 to ₹18.55 per share.