StrengthTalking point
Book value compounding
Net worth compounded at 13.5% a year over 4 years (₹51,314 → ₹85,054).
Importance 54 / 95 · financial health
REC LIMITED · Research view
REC LIMITED
NSE: RECLTDBSE: 532955ISIN INE020B01018Face value ₹10standalone
₹289
−1.47% · 2026-10-01 · 52-wk ₹289–₹386
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
Context
Lower P/E than peers
Trades at 4.75× earnings — 49% below the financial institution median of 9.38×.
Importance 51 / 95 · valuation
Context
Stock has lagged the business
Over 4 years profit compounded at 12.9% a year while the stock returned 0.2% a year — the FY2022 base was somewhat depressed, so part of this is recovery rather than trend.
Importance 49 / 95 · business vs stock
Section 03 · The company
Who is this company?
Classified by the exchange under Financial Services › Financial Services › Finance › Financial Institution.
- Market cap
- ₹76,126 cr
- FY2026 revenue
- ₹59,140 cr
- FY2026 net profit
- ₹16,282 cr
- Net worth
- ₹84,290 cr
- Total debt
- —net cash
- EPS (basic)
- ₹61.71
- Listed
- NSE · BSE
- Reporting
- Ind-AS (NBFC)Apr–Mar
Peer set used on this page: 4 financial institution.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Context
Revenue has compounded at 11.0% a year over 4 years (₹39,269 → ₹59,584) — steady rather than rapid.
Rule REVENUE_COMPOUNDED_MODERATE
- Revenue growth per year
- +10.9%over 4 years
- Revenue growth
- +5.8%vs last year
- Net profit growth
- +3.6%vs last year
- Change in net profit since FY22
- +62%
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Concern
Q1 FY27 EBITDA margin was 97.1%, down 1.97 percentage points from 99.1% a year earlier.
Rule QTR_MARGIN_CHANGED_YOY
Strength
Q1 FY27 net profit was ₹4,193 cr, up 24.2% from ₹3,375 cr in the previous quarter (Q4 FY26).
Rule QTR_PROFIT_SEQUENTIAL_CHANGE
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 13,682 | — | 4,038 | — | 29.5% |
| Q3 FY25 | 14,272 | +18.4% | 4,076 | +23.2% | 28.6% |
| Q4 FY25 | 15,334 | +21.0% | 4,310 | +5.7% | 28.1% |
| Q1 FY26 | 14,737 | +12.7% | 4,466 | +29.1% | 30.3% |
| Q2 FY26 | 15,153 | +10.7% | 4,415 | +9.3% | 29.1% |
| Q3 FY26 | 15,018 | +5.2% | 4,052 | −0.6% | 27.0% |
| Q4 FY26 | 14,564 | −5.0% | 3,375 | −21.7% | 23.2% |
| Q1 FY27 | 14,435 | −2.1% | 4,193 | −6.1% | 29.0% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹59,169 crTTM
- EBITDA
- ₹56,465 crTTM
- EBIT
- ₹56,438 crTTM
- PBT
- ₹20,368 crTTM
- Net profit
- ₹16,035 crTTM
C. Corporate actions
14 Aug 2026DividendFinal Dividend - Rs. - 1.5500 — ₹1.55/share
31 Jul 2026DividendInterim Dividend - Rs. - 4.2500 — ₹4.25/share
20 Mar 2026DividendInterim Dividend - Rs. - 3.2000 — ₹3.20/share
6 Feb 2026DividendInterim Dividend - Rs. - 4.6000 — ₹4.60/share
27 Oct 2025DividendInterim Dividend - Rs. - 4.6000 — ₹4.60/share
14 Aug 2025DividendFinal Dividend - Rs. - 2.6000 — ₹2.60/share
1 Aug 2025DividendInterim Dividend - Rs. - 4.6000 — ₹4.60/share
26 Mar 2025DividendInterim Dividend - Rs. - 3.6000 — ₹3.60/share
14 Feb 2025DividendInterim Dividend - Rs. - 4.3000 — ₹4.30/share
8 Nov 2024DividendInterim Dividend - Rs. - 4.0000 — ₹4.00/share
9 Aug 2024DividendInterim Dividend - Rs. - 3.5000 — ₹3.50/share
28 Jun 2024DividendFinal Dividend - Rs. - 5.0000 — ₹5.00/share
28 Mar 2024DividendInterim Dividend - Rs. - 4.5000 — ₹4.50/share
13 Nov 2023DividendInterim Dividend - Rs. - 3.5000 — ₹3.50/share
14 Aug 2023DividendInterim Dividend - Rs. - 3.0000 — ₹3.00/share
14 Jul 2023DividendFinal Dividend - Rs. - 4.3500 — ₹4.35/share
9 Feb 2023DividendInterim Dividend - Rs. - 3.2500 — ₹3.25/share
7 Nov 2022DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
17 Aug 2022Bonus issueBonus issue 1:3 — 3:4
12 Jul 2022DividendFinal Dividend - Rs. - 4.8000 — ₹4.80/share
15 Feb 2022DividendInterim Dividend - Rs. - 6.0000 — ₹6.00/share
11 Nov 2021DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
16 Sept 2021DividendFinal Dividend - Rs. - 1.7100 — ₹1.71/share
13 Aug 2021DividendInterim Dividend - Rs. - 2.0000 — ₹2.00/share
18 Mar 2021DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Margin and return trends are shown above.
- EBITDA margin now
- 96.3%
- 5-year range
- 88.2–101.1%
- ROE FY2026
- 20.1%
- ROCE FY2026
- —
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Strength
Net worth compounded at 13.5% a year over 4 years (₹51,314 → ₹85,054).
Rule NET_WORTH_COMPOUNDING
Operating cash flowNet profit
- Total debt
- —
- Operating cash flow ÷ net profit
- 0.36×FY2026
- Free cash flow
- ₹5,839 cr
- Current ratio
- —
Section 08 · Relative position
How does it compare with peers?
Ranked against 4 financial institution (FY2026, consolidated).
Revenue growth
RECLTD · 3rd of 4 · set median 7.1%
EBITDA margin
RECLTD · 3rd of 4 · set median 96.5%
Return on equity
RECLTD · 2nd of 4 · set median 17.8%
P/E ratio
RECLTD · 2nd of 4 · set median 9.4×
Context
Trades at 4.75× earnings — 49% below the financial institution median of 9.38×.
Rule PE_BELOW_PEERS
- P / E
- 4.7×TTM to Jun 26
- P / B
- 0.9×latest book
- P / S
- 1.3×TTM sales
- Earnings yield
- 21.1%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 4.7× · P/S 1.3× · ROE 20.0%.
Section 09 · The stock
How has the stock performed?
Context
Over 4 years profit compounded at 12.9% a year while the stock returned 0.2% a year — the FY2022 base was somewhat depressed, so part of this is recovery rather than trend.
Rule STOCK_LAGGED_EARNINGS · rebound
- 1-year return
- −23.4%
- 3-year return
- +0.6%
- 5-year return
- +146.9%
- From 52-wk high
- −25.0%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹334
- vs 200-day avg
- Below₹348
- RSI (14)
- 24.1oversold
- MACD histogram
- -0.9
- From 52-wk high
- −25.0%
- From 52-wk low
- 0.0%
- 30-day volatility
- 20.9%ann.
- 6-month return
- −9.9%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
Nothing is flagged for review for this company.
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 39,132 | 39,208 | 47,214 | 55,911 | 59,140 |
| Total income | 39,230 | 39,253 | 47,214 | 55,980 | 59,187 |
| EBITDA | 34,496 | 37,501 | 47,754 | 54,019 | 56,981 |
| Profit before tax | 12,425 | 13,739 | 17,781 | 19,860 | 20,713 |
| Net profit | 10,046 | 11,055 | 14,019 | 15,713 | 16,282 |
| EPS (₹) | 50.9 | 41.9 | 53.1 | — | 61.7 |
| Net worth | 50,986 | 57,680 | 68,783 | 77,638 | 84,290 |
| Operating cash flow | −3,963 | −37,482 | −57,885 | −39,182 | 5,914 |
| Free cash flow | −3,984 | −37,495 | −57,916 | −39,263 | 5,839 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 0.2 | 20.4 | 18.4 | 5.8 |
| Profit growth YoY | — | 10.0 | 26.8 | 12.1 | 3.6 |
| Profitability | |||||
| EBITDA margin % | 88.2 | 95.6 | 101.1 | 96.6 | 96.3 |
| Net margin % | 25.6 | 28.2 | 29.7 | 28.1 | 27.5 |
| Return on equity % | 19.7 | 20.3 | 22.2 | 21.5 | 20.1 |
| Return on capital % | — | — | — | — | — |
| Leverage & cash | |||||
| Debt to equity | — | — | — | — | — |
| Cash flow ÷ profit | -0.39 | -3.39 | -4.13 | -2.49 | 0.36 |
| Current ratio | — | — | — | — | — |