REC (NSE:RECLTD) Dividend Payout Ratio: 0.62 (As of Mar. 2026) — 114% Above Median

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NSE:RECLTD REC Ltd NSE:RECLTD
66 GF Score
Price ₹351.05
GF Value ₹434.42
Valuation Modestly Undervalued
! 4 Warning Signs
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What is REC Dividend Payout Ratio?

REC NSE:RECLTD -0.26% 66 Dividend Payout Ratio is 0.62 as of Mar. 2026, which is 114% above its 10-year median of 0.29. GuruFocus rates NSE:RECLTD with a GF Score™ of 66/100 and a GF Value™ of ₹434.42 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 194 Credit Services companies, REC ranks worse than 59.79% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. REC's Dividend Payout Ratio for the months ended in Mar. 2026 was 0.62.

The historical rank and industry rank for REC's Dividend Payout Ratio or its related term are showing as below:

NSE:RECLTD' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.24   Med: 0.29   Max: 0.45
Current: 0.38

During the past 13 years, the highest Dividend Payout Ratio of REC was 0.45. The lowest was 0.24. And the median was 0.29.

NSE:RECLTD's Dividend Payout Ratio is ranked worse than
59.79% of 194 companies
in the Credit Services industry
Industry Median: 0.32 vs NSE:RECLTD: 0.38

As of today (2026-07-14), the Dividend Yield % of REC is 5.58%.

During the past 13 years, the highest Trailing Annual Dividend Yield of REC was 12.96%. The lowest was 1.15%. And the median was 7.79%.

REC's Dividends per Share for the months ended in Mar. 2026 was ₹7.80.

During the past 12 months, REC's average Dividends Per Share Growth Rate was 38.10% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 25.10% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 23.00% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 12.80% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of REC was 27.30% per year. The lowest was -1.40% per year. And the median was 18.90% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

REC (NSE:RECLTD) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

REC Dividend Payout Ratio Related Terms

REC Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for REC's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

REC Dividend Payout Ratio Chart

REC Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.24 0.28 0.29 0.28 0.38

REC Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.27 0.21 0.43 0.30 0.62

NSE:RECLTD vs V, MA, AXP: Dividend Payout Ratio Comparison

For the Credit Services subindustry, REC's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

REC Dividend Payout Ratio vs Credit Services Industry

For the Credit Services industry and Financial Services sector, REC's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where REC's Dividend Payout Ratio falls into.


NSE:RECLTD
66GF Score
REC Ltd NSE:RECLTD
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

REC Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

REC's Dividend Payout Ratio for the fiscal year that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Mar. 2026 )/ EPS without NRI (A: Mar. 2026 )
=23.2/ 61.864
=0.38

REC's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=7.8/ 12.69
=0.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.62 mean?
REC (NSE:RECLTD) has a Dividend Payout Ratio of 0.62 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on REC and its competitors. This is 114% above median its historical median of 0.29. Over the past decade, REC's Dividend Payout Ratio has ranged from 0.24 to 0.45. According to the industry distribution chart, REC ranks #116 out of 194 companies in the Credit Services industry, placing it in the top 59.8%.
Is REC's Dividend Payout Ratio too high?
REC's current Dividend Payout Ratio of 0.62 is 114% above median its 10-year median of 0.29. Over the past 10 years, this metric has ranged from a low of 0.24 to a high of 0.45. The Credit Services industry median Dividend Payout Ratio is 0.32. REC's value of 0.62 is 93.8% above this industry median. Based on the distribution chart, REC ranks #116 out of 194 companies in the Credit Services industry, which is below the industry midpoint. Overall, REC has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REC's Dividend Payout Ratio compare to V and MA?
According to the Credit Services industry distribution chart, REC ranks #116 out of 194 companies for Dividend Payout Ratio. This places REC in the lower half of its industry. The industry median Dividend Payout Ratio is 0.32. REC's value of 0.62 is 93.8% above this benchmark. Historically, REC's own Dividend Payout Ratio has ranged from 0.24 to 0.45 over the past decade. While the company's 10-year median is 0.29 vs. the industry median of 0.32, REC has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Credit Services company?
The median Dividend Payout Ratio among Credit Services companies is 0.32, based on 194 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REC's current Dividend Payout Ratio of 0.62 is 93.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on REC and its competitors. For the Credit Services industry, the median Dividend Payout Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REC's current Dividend Payout Ratio is 0.62, which is 114% above median its own 10-year median of 0.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REC stock overvalued right now?
Based on GuruFocus' analysis, REC (NSE:RECLTD) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹434.42, compared to a current price of ₹351.05 — trading 19.2% below its estimated fair value. The current Dividend Payout Ratio is 0.62, which is 114% above median its 10-year median of 0.29 and 93.8% above the Credit Services industry median of 0.32. REC's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For REC (NSE:RECLTD), the current Dividend Payout Ratio is 0.62 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is REC (NSE:RECLTD) Overvalued in 2026?

Based on GuruFocus' analysis, REC stock appears to be undervalued. The current stock price of ₹351.05 is trading 19.2% below its estimated GF Value™ of ₹434.42. GuruFocus considers REC to be Modestly Undervalued.

Key valuation signals for NSE:RECLTD:

  • Dividend Payout Ratio: 0.62 (114% above median its 10-year median of 0.29)
  • GF Value™: ₹434.42 vs. price of ₹351.05 (19.2% below fair value)
  • GF Score™: 66/100 with 4 warning signs
  • Industry Position: 93.8% above the Credit Services median (#116 of 194)

No single metric tells the full story. See the NSE:RECLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

REC Business Description

Other Exchanges 532955:India
Address Sector-29, Plot No. 1.-4, Near IFFCO Chowk Metro Station, Gurugram, HR, IND, 122001
REC Ltd is a non-banking financial company operating in India. The company's main objective is to finance and promote power sector projects on the subcontinent. REC provides loan assistance to numerous state power utilities, private sector project developers, central power sector utilities, and state governments. REC investments include power generation, power transmission, power distribution, and other system improvement initiatives. REC is also instrumental in implementing several initiatives spearheaded on behalf of the government of India, including rural electrification. It comprises only one business segment-lending to power, logistic and infrastructure sector. The majority of its revenue derives from long-term financing.
66GF Score

Get the complete analysis for NSE:RECLTD

Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹351.05
Price
₹434.42
GF Value