REC Share Price Update: Stock Falls 1% – Know Brokerage Strategies After Q1 Results

Share Price Update of REC: The share price of REC came down by 1 percent. Read on to know about the brokerage strategies after the Q1 results.

One of the stocks that are under the radar today is that of the REC (Rural Electrification Corporation) which fell by approximately 1 percent following the announcement of its Q1 financial results. Although the decline was small, the overall performance of the company in the first quarter of FY26 was good. REC registered an increase in both its Net Profit and the Net Interest Income (NII), which is an indication of healthy financial performance.

Q1 Highlights: Strong Financials

• Net Profit & NII Growth: The NII of the company experienced a growth of 17.3% in relation to the previous year, in accordance with the expectations of the market. It improved its Pre-Provision Operating Profit (PPOP) by 4.8 percent which is less than what was forecasted.
• Dividend Announcement: REC declared an interim dividend of ₹4.60 per share.
• Other Key Data: Credit cost was at 617 crore negative and the firm got a write-back of 270 crore as a Non-Performing Asset (NPA) of TRN Energy got resolved.

Mixed Reactions from Brokerages

Some of the leading brokerages have provided their take regarding the REC stock following the Q1 results. This is what they replied:

UBS (Bullish View)

• Rating: Buy
• Target Price: 550 Rupees
• Key Highlights: UBS initiated a positive coverage with the indication that profit was higher in Q1 than it was expected.
  • Assets Under Management (AUM) increased by 10.4 percent YoY
  • Loan Disbursements: there was an upsurge by 36.3 percent YoY
  • High Returns on Asset (RoA) 2.9 percent and Return on Equity (RoE) 23 percent

CLSA (High Conviction Outperform Call)

• Rating: Outperform
• Target Price: ₹525
• Key Takeaways:
  • Quarter one profit was 4-percent above expectations
  • But the growth of loans was slightly slower at 10 percent
  • The company still has confidence in the prospects of REC and assigned it high conviction call

Morgan Stanley (Positive but Conservative)

• Rating: Overweight
• Target Price: ₹485
• Observations:
  • The Q1 profit increased by 29 percent YoY and 11 percent higher above the QoQ expectations
  • Provision reversal and increase of NII supported growth
  • The Net Interest Margin (NIM) was also above expectations as it stood at 3.9%.
  • Disbursements increased by 36 percent YoY with distribution mainly contributing to this growth

REC Share Price Today

At approximately 10.45 AM, the share price of REC was 400.56, and declined by 1.09 or 3.85.

Also Read : Eternal Zomato Q1 Results 2025: Surprising Numbers & What Investors Should Know

Conclusion: What is to be done by the investors?

Recent performance of REC in Q1 FY26 is very good where it has registered a good profit growth, good lending, and good rate of returning. To some extent brokerages have questioned the growth of loan, but otherwise there has been a positive outlook with UBS and CLSA posting high target prices.

In case you seek a stock that could yield in long term investment in the financial stock in the public sector, considering REC can be an option due to its good fundamental and the reasonable valuation.