REC Ltd. shares slumped 4% to ₹292.2, marking a new 52‑week trough, as the company reported a 6% fall in Q1 net profit to ₹4,192.7 crore from ₹4,465 crore a year earlier. The decline comes after net interest income eased 4% to ₹5,453 crore, down from ₹5,657 crore in the prior year.
Investors turned to the market data, noting that REC’s current price of ₹295.15 reflects a 2.7% slide from the previous close, while the June‑September trend shows a 9.5% monthly loss and a 20.44% YTD slump. The stock’s performance ranks among the worst in the power‑finance sector, where peers such as Power Finance Corp. have shown only 1% net profit growth.
Analysts have recalibrated expectations: Elara Capital remains bullish with a ₹633 target, implying an upside of 108.7%, whereas Morgan Stanley trims its target to ₹360, a modest 18.7% gain from the current level. Still, the consensus 10 ‘buy’ recommendations suggest a cautious optimism amid the earnings dip.
REC’s earlier pilot issue of tokenised corporate bonds raised ₹500 crore under the SEBI Regulatory Sandbox, oversubscribed eight times at a 7.3% coupon. This innovative move has attracted attention as a potential new revenue stream, yet the market remains skeptical about its immediate impact on earnings.
Looking ahead, traders will focus on REC’s Q2 guidance and the next earnings release on 28‑29 November. The company’s ability to leverage its tokenised bond platform and restore interest income will be key to reversing the current downtrend.