REC’s Loans to Renewable Energy Sector Grew 58% in Q3 2025
The company directed loans worth ₹63.14 billion towards green energy initiatives
January 6, 2025
Public infrastructure finance company REC has announced a significant increase in loan disbursements for the third quarter (Q3) of the financial year (FY) 2025. The non-banking financial company disbursed a total of ₹546.92 billion (~$6.63 billion) in Q3 FY 2025, marking a 17.98% rise from the same period last year.
REC increased its focus on renewable energy in Q3, with disbursements in this category achieving a 58.09% year-over-year (YoY) growth. The company directed loans worth ₹63.14 billion (~$765.94 million) towards green energy initiatives in this quarter.
For the first nine months of FY 2025, REC’s total loan disbursements reached ₹1,456.47 billion (~$ 16.97 billion), reflecting a 19.30% growth YoY from ₹1,220.89 billion (~$14.79 billion). Renewable energy loans accounted for ₹ 176.12 billion (~$2.13 billion) of the total, representing a 78.68% YoY increase.
REC reported a total income of ₹135.95 billion (~$ 1.56 billion) in Q2 FY 2025, marking a 17% YoY increase. Net profit for the quarter rose by 6% to ₹40.05 billion (~$485.5 million). Loan approvals declined by 27% YoY to ₹762 billion (~$9.23 billion), with the renewable energy sector receiving ₹207.37 billion (~$2.51 billion), a 17% decrease compared to last year. Disbursements for renewable energy projects increased by 37.35% YoY to ₹59.5 billion (~$721-21 million).
REC’s renewable energy loan disbursements grew by 92.68% YoY to ₹112.97 billion (~$1.34 billion) in the first half of FY 2025. The company’s total loan disbursements for this period rose by 20.10% YoY to ₹909.55 billion (~$10.83 billion).
In Q4 FY 2024, REC reported a net profit of ₹40.79 billion (~$494.12 million), a 33% YoY increase, with total income rising by 24% to ₹127.07 billion (~$1.54 billion). Despite a 57% decline in loan approvals to ₹328.75 billion (~$3.98 billion), disbursements grew by 34% to ₹393.7 billion (~$4.7 billion), with renewables accounting for 35% of approvals and 16% of disbursements.
REC was designated as the nodal authority for implementing the PM Surya Ghar: Muft Bijli Yojana which aims to install rooftop solar systems in 10 million households by the end of FY27.