RECNSE:RECLTD -2.11%66 Pretax Margin % is 82.34% as of Mar. 2026, which is 6% below its 10-year median of 87.16. GuruFocus rates NSE:RECLTD with a GF Score™ of 66/100 and a GF Value™ of ₹433.88 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 533 Credit Services companies, REC ranks better than 95.31% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. REC's Pre-Tax Income for the
three
months ended in Mar. 2026 was ₹44,145 Mil. REC's Revenue for the
three
months ended in Mar. 2026 was ₹53,611 Mil. Therefore, REC's pretax margin for the quarter that ended in Mar. 2026 was 82.34%.
The historical rank and industry rank for REC's Pretax Margin % or its related term are showing as below:
NSE:RECLTD'
s Pretax Margin % Range Over the Past 10 Years
Min: 69.31 Med: 87.16 Max: 104.17
Current: 95.09
NSE:RECLTD's Pretax Margin % is ranked better than 95.31% of 533
companies
in the Credit Services industry
Industry Median: 20.25
vs NSE:RECLTD: 95.09
REC (NSE:RECLTD) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
REC Pretax Margin % Related Terms
REC Pretax Margin % Historical Data
* Premium members only.
The historical data trend for REC's Pretax Margin % 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.
NSE:RECLTD vs V, MA, AXP: Pretax Margin % Comparison
For the Credit Services subindustry, REC's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, REC's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where REC's Pretax Margin % falls into.
* 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 (NSE:RECLTD) has a Pretax Margin % of 82.34% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on REC and its competitors. This is near median its historical median of 87.16. Over the past decade, REC's Pretax Margin % has ranged from 69.31 to 104.17. According to the industry distribution chart, REC ranks #25 out of 533 companies in the Credit Services industry, placing it in the top 4.7%.
Is REC's Pretax Margin % too high?
REC's current Pretax Margin % of 82.34% is near median its 10-year median of 87.16. Over the past 10 years, this metric has ranged from a low of 69.31 to a high of 104.17. The Credit Services industry median Pretax Margin % is 20.25. REC's value of 82.34% is 306.6% above this industry median. Based on the distribution chart, REC ranks #25 out of 533 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. 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 Pretax Margin % compare to V and MA?
According to the Credit Services industry distribution chart, REC ranks #25 out of 533 companies for Pretax Margin %. This places REC in the top 5% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 20.25. REC's value of 82.34% is 306.6% above this benchmark. Historically, REC's own Pretax Margin % has ranged from 69.31 to 104.17 over the past decade. While the company's 10-year median is 87.16 vs. the industry median of 20.25, 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 Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 20.25, based on 533 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REC's current Pretax Margin % of 82.34% is 306.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on REC and its competitors. For the Credit Services industry, the median Pretax Margin % is 20.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REC's current Pretax Margin % is 82.34%, which is near median its own 10-year median of 87.16. 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 ₹433.88, compared to a current price of ₹348.75 — trading 19.6% below its estimated fair value. The current Pretax Margin % is 82.34%, which is near median its 10-year median of 87.16 and 306.6% above the Credit Services industry median of 20.25. REC's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For REC (NSE:RECLTD), the current Pretax Margin % is 82.34% 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 ₹348.75 is trading 19.6% below its estimated GF Value™ of ₹433.88.
GuruFocus considers REC to be Modestly Undervalued.
Key valuation signals for NSE:RECLTD:
Pretax Margin %: 82.34% (near median its 10-year median of 87.16)
GF Value™: ₹433.88 vs. price of ₹348.75 (19.6% below fair value)
Industry Position: 306.6% above the Credit Services median (#25 of 533)
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 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
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