Main sectors for revenues:

1. Energy generation
2. Energy transmission
3. Energy distribution

Top 3 markets and their percentage shares:

1. India: approx. 80%
2. Bangladesh: approx. 10%
3. Nepal: approx. 5%

REC Limited is strongly anchored in the energy sector, with the majority of revenues coming from financing projects in energy generation, transmission, and distribution. India remains the main market, as the company has its largest projects and investments here. The expansion into neighboring markets like Bangladesh and Nepal demonstrates the effort to strengthen regional presence and capitalize on new growth opportunities.

Production Sites: No specific production sites, as REC Limited is mainly engaged in financing.

REC Limited is an Indian company specializing in financing infrastructure projects, particularly in the energy sector. It does not produce physical products but offers financial services and loans to support the expansion and modernization of energy infrastructure. Therefore, the company does not have production facilities in the traditional sense.

Revenue Growth: Estimated 8-10% per year (2025-2027) Profit Growth: Estimated 7-9% per year (2025-2027)

REC Limited is pursuing a growth strategy focused on diversifying its portfolio and tapping into new markets. The company plans to increase its investments in renewable energy to benefit from the global energy transition.

Additionally, REC Limited is leveraging digitalization of its processes to achieve efficiency gains and cost savings. These measures are intended to strengthen the company's competitiveness and unlock new business opportunities.

Another key focus is expanding international presence, particularly in emerging markets, to capitalize on growth potential in these regions. These strategic initiatives are aimed at securing the company's long-term growth and profitability.

Main Imported Raw Materials/Components: Copper, Aluminum, Transformer Components

Main Supplier Countries: China, Germany, South Korea

REC Limited, a leading company in the field of financing energy projects, mainly imports raw materials and components needed for the construction and maintenance of energy infrastructure projects. This includes in particular copper and aluminum, which are essential for the production of cables and electrical lines.

China is one of the largest suppliers of these metals due to its extensive production capacities. Germany and South Korea supply high-quality transformer components that are crucial for the efficiency and reliability of energy transmission.

These imports are crucial to support the projects financed by REC Limited as they form the technological basis for the energy infrastructure.

Return on Equity (ROE): 17.5% (2024)
Debt-to-Equity Ratio: 4.2 (2024)
Net Interest Margin: 3.8% (2024)

REC Limited has a significant competitive advantage, reflected in a solid Return on Equity (ROE) of 17.5% in 2024. This metric indicates that the company is able to efficiently utilize its equity investments to generate profits.

The Debt-to-Equity Ratio of 4.2 suggests that REC Limited heavily relies on debt, which is common in the financial industry. However, it is important for the company to manage its debts well to minimize risk.

The Net Interest Margin of 3.8% shows that REC Limited is able to generate a healthy profit from its financing activities. This is crucial for profitability in the financial services sector.

Overall, REC Limited's financial performance indicates a robust competitive advantage supported by efficient management of equity and debt, as well as profitable interest margins.

Institutional Investor Share: Approximately 55% (2025, estimated)

Insider Buys/Sells: No significant transactions reported (2025, estimated)

The institutional investor share in REC Limited is estimated to be around 55%. This demonstrates the confidence of large institutional investors in the company and its future performance.

In 2025, no significant insider buys or sells were reported. This could indicate that the management has confidence in the current corporate strategy and does not expect any major changes in ownership structure.

Market share of REC Limited: Estimated at around 10% in the Indian infrastructure financial services sector (2025)

Major competitors and their market shares:

1. Power Finance Corporation (PFC): approximately 15%
2. Rural Electrification Corporation (REC): approximately 10%
3. Indian Renewable Energy Development Agency (IREDA): approximately 8%
4. Housing and Urban Development Corporation (HUDCO): approximately 7%
5. L&T Finance Holdings: approximately 6%
6. IDFC Limited: approximately 5%
7. Bajaj Finance: approximately 4%
8. Muthoot Finance: approximately 3%
9. Shriram Transport Finance: approximately 3%
10. Mahindra & Mahindra Financial Services: approximately 2%

Moat of REC Limited:

REC Limited has a moderate moat, primarily arising from its specialization in financing infrastructure projects in India. The advantage lies in the established relationships with government entities and a deep understanding of regulatory requirements in the energy sector.

In comparison to competitors, Power Finance Corporation has a stronger moat as they not only have a larger market presence but also offer a more diversified financing portfolio. IREDA has an advantage in the renewable energy sector, which is significant in the current global energy transition.

REC Limited must continue to focus on its core competencies and potentially expand into new, high-growth sectors to strengthen its moat. Competitors have stronger positions in certain niches, which REC Limited could offset through strategic partnerships or innovations.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Dividend Yield: 6.5% (2024)

REC Limited recorded solid revenue growth of 8.5% in 2024, indicating strong demand for its services in the energy infrastructure financing sector. The profit growth of 10.2% during the same period shows that the company is able to increase its profitability, reflecting efficient cost control and effective business strategies.

The dividend yield of 6.5% is attractive and suggests that the company distributes a significant portion of its profits to shareholders, which may be of interest to investors seeking regular income.

In summary, REC Limited presents an interesting investment opportunity due to its solid growth and attractive dividend yield, especially for investors interested in stable returns. However, it is important to also consider other factors such as the macroeconomic environment and the long-term outlook for the energy sector.

Dividend Yield: 7.5% (2025, estimated)
Dividend History: Regular payouts in recent years

REC Limited is known for its reliable dividend policy. The company has consistently paid dividends in recent years, indicating a stable financial performance and solid earnings.

The dividend yield of approximately 7.5% in 2025 reflects the attractiveness of the stock for income investors. This high yield is typical for companies in the utility sector, which often generate stable cash flows.

REC Limited has proven to be a dependable dividend payer in the past, giving investors confidence in future payouts. The company's financial stability and continuous demand for its services support this reliability.