REC share price in focus after Q1 results, dividend: Should you buy this PSU stock?
REC share price was stuck in a tight range of ₹ 400 to ₹ 408 apiece on the BSE in early trade amid weakness in the Indian stock market. The PSU stock opened nearly 1% higher at ₹ 408.80 apiece but soon reversed gains to trade at the day's low of ₹ 400.65.
REC Ltd, on Thursday after market hours, posted a 29% increase in its consolidated net profit to ₹ 4,465.71 crore for the June quarter compared to the year-ago period, mainly on the back of higher revenues. The figure stood at ₹ 3,460.19 crore in the quarter ended on June 30, 2024.
Total income rose to ₹ 14,823.98 crore in the quarter under review from ₹ 13,092.44 crore in the same period a year ago.
The loan book has maintained its growth trajectory on a sustained basis to ₹ 5.85 lakh crore as against ₹ 5.30 lakh crore as on June 30, 2024.
The net credit-impaired assets as on June 30, 2025, have reduced to 0.24 per cent from 0.82 per cent as on June 30, 2024, with a Provision Coverage Ratio of 77.05 per cent on NPA assets, as on June 30, 2025.
The company's board also approved an interim dividend of ₹ 4.60 apiece for FY26. It has fixed August 1 as the record date for determining the eligibility of the shareholders for the said dividend.
REC added that the dividend shall be paid on or before August 21, 2025, to those shareholders whose names appear as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on August 1, 2025.
Additionally, REC also announced the record date for the final dividend of FY25 as August 14.
REC has been trading sideways for the past 102 sessions, with its range gradually contracting—a classic sign of fading momentum, said Anshul Jain, Head of Research at Lakshmishree Investment.
"On the weekly charts, this price action is taking the shape of a bearish flat base, a structure that often signals weakness before a breakdown. The shrinking volatility and lack of bullish follow-through indicate indecision among participants, he said.
According to him, a decisive break below the current base will likely attract fresh selling, pushing the stock toward the 340 zone. Until then, traders should stay cautious and avoid aggressive longs unless the stock shows clear signs of strength or volume-based support, advised Jain.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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