REC Limited has declared a 4th interim dividend of ₹3.20 per share (32% on ₹10 face value) for FY 2025‑26, rewarding investors with yet another payout as the Maharatna NBFC continues its strong financial performance and steady cash generation.

REC 4th Interim Dividend – Key Details

• Company: REC Limited (Maharatna CPSE, power sector financier).

• Dividend type: Fourth interim dividend for FY 2025‑26.
• Dividend amount: ₹3.20 per equity share of face value ₹10 (i.e., 32%).
• Record date: Friday, 20 March 2026 – shareholders on this date are eligible.
• Payment date: Dividend to be paid on or before 14 April 2026 via electronic mode only.
• Board meeting: Approved in the meeting held on 16 March 2026 (2:00–2:40 PM).
• Indicative yield: At around ₹332.45 share price, the latest interim implies a ~6% annualised yield considering all FY26 payouts so far.

This 4th interim dividend comes on top of earlier FY26 payouts, underlining REC’s shareholder‑friendly capital return approach.

Strengths Behind REC’s 4th Interim Dividend

• Consistent cash generation from a large, secured loan book in the power sector supports multiple interim dividends in a year.
• Maharatna CPSE status and government backing add comfort on business stability and payout visibility for income‑focused investors.
• Attractive dividend yield (~6%) at recent prices (~₹332.45) makes REC a compelling option for dividend investors in PSU financials.
• Upcoming PFC–REC merger framework and Fitch’s ‘BBB‑/Stable’ affirmation indicate confidence in long‑term credit quality.
• Shift to 100% electronic dividend payments reduces operational risk, speeds up credit, and aligns with SEBI’s investor protection norms.

Key Risks & Considerations for REC Investors

• Dividend is not guaranteed each year and depends on REC’s profitability, capital needs, and government dividend policies for CPSEs.
• Power sector concentration risk – any stress in state DISCOMs or changes in power demand/renewable policies can impact asset quality and cash flows.
• Interest‑rate and funding cost risks – as a leveraged NBFC, REC’s margins are sensitive to bond yields and refinancing conditions. ​
• Potential PFC–REC merger could change capital allocation, payout ratios, and strategic focus over the medium term.
• Tax leakage due to TDS if investors miss the 20 March 2026 deadline to submit correct forms and KYC details.

FAQs

1. What exactly has REC announced as its 4th interim dividend?
REC has declared a fourth interim dividend of ₹3.20 per equity share (32% on ₹10 FV) for FY 2025‑26, approved in its 16 March 2026 board meeting.

2. What is the record date and when will I receive the dividend?
The record date is 20 March 2026. Shareholders on this date will receive the dividend on or before 14 April 2026, directly into their bank accounts via electronic mode.

3. How can I make sure I get the REC dividend without TDS issues?
Ensure your PAN and bank details are updated with your DP/RTA and, if eligible for lower/nil TDS, email Form 15G/15H and supporting documents by 20 March 2026 to the specified Alankit email/portal. Late submissions will not be considered. ​

4. What dividend yield does this interim payout imply at current prices?
At a recent price of around ₹332.45, and factoring in all FY26 interim payouts, REC’s annualised dividend yield is about 6%, making it attractive for income investors in PSU financials.

5. Is REC’s high dividend payout sustainable going forward?
REC’s strong loan book, government backing, and rating support its current payouts, but future dividends depend on earnings, capital requirements, merger decisions, and CPSE dividend policies, so investors should not assume a fixed rupee payout every year.