REC Limited
RECLTDStructural risk assessment following Q4-FY26 | 31 Mar 26 earnings.
Q3-FY26 | 31 Dec 25
15
Risk Score
Q4-FY26 | 31 Mar 26
10
Risk Score
🟢Risk decreased by −5 points
Flagium detected:
- ✓Stabilization in key metrics
Persistent watch:
- Operating Leverage Stress
ℹ️ Executive Summary
REC Limited registered a drop in both quarterly revenue and net profit, reflecting challenging industry-wide demand trends. A 'Stable' risk classification and 1 active flags indicate that operating headwinds are beginning to translate into structural pressure.
🛡️ Sentinel Insight
"REC Limited currently sits within Flagium's Stable category. However, recent periods have introduced early signs of leverage and funding pressure. With both revenue and profit contracting, triggers like 'Operating Leverage Stress' amplify the structural risk. Current deterioration appears cyclical rather than existential."
The Quarter at a Glance
| Metric | Q4-FY26 | 31 Mar 26 | Q4-FY25 | 31 Mar 25 | Change |
|---|---|---|---|
| Revenue | ₹14,583.4 Cr | ₹15,348.4 Cr | -5.0% |
| EBIT Margin | 30.27% | 35.77% | -550 bps |
| Net Profit (PAT) | ₹3,375.1 Cr | ₹4,310.0 Cr | -21.7% |
| Interest Expense | ₹8,930.7 Cr | ₹8,768.4 Cr | +1.9% |
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What Changed Beneath the Headlines?
Revenue Contraction
Quarterly revenue changed by -5.0% YoY, reflecting demand and volume updates.
Net Profit Compression
Profit after tax changed by -21.7% YoY, settling at ₹3,375.1 Cr.
Operating Margins
Operating margin declined by 550 bps YoY to 30.27%.
Flagium Risk Signals
Expenses are consistently growing faster than revenues, creating operational pressure.
What the financials are implicitly signaling
Flagium's structural analysis indicates:
- •Deleveraging or structural balance sheet adjustment is required to defend interest coverage ratios.
- •Capacity utilization calibration is being monitored to align with slow volume intake.
- •Working capital conversion cycles require active support to sustain cash conversions.
Signals to Monitor Next Quarter
Raw material price movement and its impact on operating margins.
Working capital efficiency and cash flow conversions.
Domestic demand recovery and segment-wise volume growth.
Historical Quality Trend
Last 6 Quarters| Quarter | Risk Score | Trend | Current Risk Class |
|---|---|---|---|
| Q4 FY26 | 10 | ↓ | 🟢 Stable |
| Q3 FY26 | 15 | ↑ | 🟢 Stable |
| Q2 FY26 | 10 | ↑ | 🟢 Stable |
| Q1 FY26 | 5 | ↑ | 🟢 Stable |
| Q4 FY25 | 0 | → | 🟢 Stable |
| Q3 FY25 | 0 | → | 🟢 Stable |
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What to do next
Explore RECLTD's full structural risk profile — 12Q score trajectory, pillar breakdown, flag history, and peer benchmarking.
View RECLTD profile →See how Financial Institution peers and the broader market are positioned. Identify sector-wide stress or rotation signals.
Open market monitor →Check how this Q4-FY26 | 31 Mar 26 result affects your portfolio's overall risk exposure and concentration.
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Flagium AI is an automated financial data analytics platform. Analysis reports are compiled programmatically from public regulatory XBRL submissions (NSE/BSE). This evaluation does not constitute investment advice, financial planning, or recommendations to buy, sell, or hold any security. Please consult a SEBI-registered investment advisor before acting on any data presented.