REC share falls 3% on AUM growth guidance cut for FY26; check details here

REC share price: Rural Electrification Corporation Limited (REC) share price was under pressure on Wednesday, May 14, 2025, as the scrip slipped up to 3.26 per cent to hit an intraday low of ₹388.60 per share. 

 

At 1:18 PM, REC share price continued trading near day’s low at ₹390, down 2.91 per cent. In comparison, BSE Sensex was trading flat with a positive bias at 81,226.96 level.

 

Why did REC share price drop?

 

REC's share price declined after the company announced during its conference call that it has lowered its asset under management (AUM) growth guidance for FY26 to 11–13 per cent, down from the earlier projection of 15–17 per cent.

 

REC Q4 results

 

REC reported a profit after tax of ₹4,304 crore in Q4FY25, from ₹4,079.09 crore in the same quarter a year ago (Q4FY24).

 

Its revenue from operations jumped 17 per cent Y-o-Y to ₹15,333.5 crore in Q4FY25, from ₹12,671.2 crore in Q4FY24.

 

REC’s total income rose to ₹15,348.37 crore in the fourth quarter of FY25, from ₹12,706.6 crore in the same quarter of the previous year.

 

REC dividend

 

The Board of Directors has recommended a final dividend of ₹2.60 per share for FY25. This is in addition to the interim dividends totaling ₹15.40 per share, declared in four installments throughout the year. 

 

With this, the total dividend payout for FY25 amounts to ₹18 per share, based on a face value of ₹10 each.

 

REC new joint venture

 

The Board has also approved the formation of a joint venture between its wholly-owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL), and BHEL. The joint venture will be structured with equal ownership (50:50) and will focus on the development of renewable energy, power, and infrastructure projects.

 

About REC

 

REC is a publicly listed public sector enterprise under the Government of India, operating as a Systemically Important Non-Banking Finance Company (NBFC) regulated by the Reserve Bank of India. 

 

Its primary mandate is to finance and promote rural electrification projects across the country. 

 

Over the years, REC has emerged as a key player in supporting India’s energy infrastructure, offering financial assistance to state electricity boards, power utilities, and private sector companies for a wide range of power and renewable energy initiatives.

 

Established in 1969, REC was originally founded to support agricultural productivity by energising pump-sets and reducing reliance on monsoon-driven irrigation. Since then, its role has majorly expanded. 

 

Today, it provides a comprehensive suite of financial products including long-term and medium-term loans, as well as debt refinancing.