AUM Growth Target: 15-20%
Management expects to maintain growth trajectory of 15-20% YoY, targeting to double AUM to INR 10 lakh crore by 2028-29 (ahead of earlier 2030 estimate).
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Full Year Disbursement: INR 1.9-2 lakh crore
Q1 disbursement of INR 43,652 crore (28% growth) positions the company to cross INR 1.9 lakh crore for full FY25, with 40% from T&D and 20% from renewables.
NIM Maintenance Above 3.6%
Net interest margin improved to 3.64% from 3.28% YoY. Management commits to maintaining NIM above 3.6% for next 4-5 years.
Renewable Portfolio to Reach 30% of AUM by 2030
Renewable energy currently at 8% of AUM (~INR 39,000 crore) is targeted to grow to 30% (INR 3 lakh crore) by 2030, targeting 20% market share of 308 GW capacity addition opportunity.
INR 2,000+ Crore Write-back in FY25
Resolution of stressed assets (KSK Mahanadi, Hiranmaye, Sinnar) expected to yield more than INR 2,000 crore write-back. Madurai (INR 560 crore) and Nadai resolved in July 2024.
12% Loan Book Growth Target for FY26
Management maintained its 12% loan book growth target for the full year, supported by robust sanctions of over ₹1 lakh crore in Q1 itself. The target will be reviewed on a quarterly basis. The loan book grew 10% YoY in Q1 to ₹5.85 lakh crore.
NIM Guidance of 3.5%-3.75%
Net interest margin is expected to remain in the 3.5%-3.75% range going forward, compared to current 3.74%. Interest spread is expected to be maintained at 2.75%-3%. Management indicated cost of funds will decline with rate cuts, offsetting yield pressure.
Net-Zero NPA Target by FY26 End
Management targets becoming a net-zero NPA company by end of FY26. Currently, 11 NPAs totaling ₹6,147 crore (77% provision coverage) are under resolution through NCLT. Additional provision reversals of ₹700-800 crore expected if remaining stressed assets are resolved.
PM Surya Ghar Rooftop Solar Progress
Against the target of 1 crore customers by end of 2026-27, approximately 56 lakh customers have applied, with 27% installations completed. Cumulative disbursements to beneficiaries stand at approximately ₹8,500 crore.
Loan Book Growth Target: 15-20% YoY, averaging 17%
CMD Vivek Dewangan guided that AUM growth will range between 15-20% across quarters, averaging 17% over the next 3-4 years. Conservative estimate is 15% leading to doubling of loan book to INR 10 lakh crore by 2030.
Renewable Energy Portfolio Target: INR 3 lakh crore by 2030
Management targets 20% market share in renewable energy business, projecting more than INR 3 lakh crore in renewable portfolio by 2030, with INR 80,000+ crore of projects pending sanction in H2 FY25.
Net Interest Margin: >3.6% for remainder of FY25
Management committed to maintaining NIM above 3.6% (target range 3.5%-3.75%) citing favorable mix shift towards higher-yielding coal-based and renewable projects yielding 9.5%+ and 10.5%+ respectively.
Coal-Based Power Market Share: 20% Target
With Ministry of Power outlining 80 GW coal-based capacity requirement by 2032, REC targets 20% market share in this segment as a key growth driver.
Loan Book Growth Target FY2026
Management reiterated confidence in achieving 11-12% loan book growth in FY2026, even after accounting for INR 49,000 crore of prepayments received in H1 including Kaleshwaram prepayment.
INR 10 Lakh Crore Loan Book by 2030
REC targets INR 10 lakh crore loan book by 2030 with renewables expected to contribute 30% (INR 3 lakh crore), aligned with India's projected INR 46 lakh crore power sector investment requirement over next 4-5 years.
Net Worth Growth Trajectory
Net worth expected to grow from INR 82,739 crore to approximately INR 1,40,000 crore supporting NIM maintenance at 3.5%-3.75% and spread of 2.75%-3.5% even as renewable share increases to 25% of loan book.
Stress Asset Resolution Timeline
Management expects all 11 NCLT assets (including Hiranmay and Sasan) to be resolved by Q4 FY2026, with Hiranmay final hearing outcome expected in Q3.
Q4 Loan Asset Growth: 15%-17%
Management expects loan assets under management to grow between 15%-17% in Q4 FY25, with confidence in sustaining this range in the coming years.
Medium-term AUM Target: INR 10 Lakh Crore by 2030
REC targets to grow its assets under management to approximately INR 10 lakh crore by the end of 2030, implying sustained 15%-17% annual growth.
NIM Guidance: Above 3.65%-3.70%
Management expects to maintain net interest margins above 3.65% to 3.70% going forward, supported by stable cost of funds at 7.15% and improving spread.
Provision Reversals: ~INR 2,200 Crore by Dec 2025
Expected reversal of provisioning of approximately INR 2,200 crore across four NCLT assets (KSK Mahanadi, Sinnar Thermal, Hiranmaye, Bhadreshwar) by December 2025 pending final NCLT orders.
FY26 AUM Growth: ~12% YoY
Management expects loan book growth of 11-13% (plus/minus 1-2%) for FY26, consistent with the trajectory toward INR 10 lakh crore by 2030. Prepayments of ~INR 1 lakh crore annually will offset disbursement growth.
FY26 Disbursement Target: INR 2-2.1 Lakh Crore
Expected disbursements of INR 200,000-210,000 crore for FY26, marginally higher than FY25's INR 191,000 crore record, driven by thermal generation, RDSS counterpart funding, and transmission projects.
NIM Guidance: 3.5%-3.75%
Net interest margin expected to remain in the 3.5%-3.75% range, with spread maintained at 2.75%-3.0%. Management will maintain competitive pricing while protecting margins through low-cost borrowing.
Net-Zero NPA Target by FY27
Company targets to become net-zero NPA by end of FY26-27. Twelve projects worth ~INR 7,500 crore remain under resolution, with expected recovery of INR 800-1,000 crore in FY26 from IBC proceedings (Sinnar, Hiranmaye, Bhadreshwar, Global Metal).