In the fourth quarter of the fiscal year 2025-26 (Q4 FY26), REC Ltd, a state-owned power sector financing company in India, reported a 22% decline in net profit, amounting to ₹3,375 crore, down from ₹4,310 crore in the same quarter of the previous year. The total income for Q4 FY26 was ₹14,583 crore, reflecting a 5% decrease from ₹15,348 crore in Q4 FY25. Despite the quarterly decline, REC Ltd achieved a 6% increase in total income for the full fiscal year, reaching ₹59,628 crore, compared to ₹56,434 crore in FY25. The annual net profit for FY26 also saw a modest rise of 3%, totaling ₹16,308 crore. The company noted a significant turnaround as its previously loss-making power distribution companies collectively reported a net profit, contributing to improved asset quality and reduced risk premiums. As a result, REC has adjusted its loan yields, benefiting borrowers. The loan book grew by approximately ₹17,000 crore in FY25, with the total loan book for FY26 standing at ₹5.84 lakh crore. The renewable loan segment experienced a robust growth of 30%, reaching ₹75,347 crore.