REC Ltd (formerly Rural Electrification Corporation) is one of India’s leading public sector financing companies focused on the power and infrastructure sector. The company plays a critical role in funding generation, transmission, and distribution projects across India.

With India’s strong push toward renewable energy, power infrastructure upgrades, and electrification initiatives, REC Ltd stands as a key beneficiary of long-term structural growth in the energy sector. In this article, we analyze REC Ltd Share Price Target from 2026 to 2030 based on current market data, financial performance, and sector outlook.

REC Ltd Share Price Today (As of Latest Market Data)

With a beta of 1.69, REC Ltd shows higher volatility compared to the broader market, reflecting sensitivity to financial and infrastructure sector cycles.

About REC Ltd

REC Ltd is a government-owned NBFC that primarily finances:

• Power generation projects

• Transmission and distribution infrastructure

• Renewable energy projects

• State electricity boards and infrastructure development

As India expands renewable capacity and upgrades power distribution networks, REC plays a strategic role in funding these large-scale projects.

Key Business Strengths

• Government backing (52.63% promoter holding)

• Strong dividend yield (4.94%)

• Book value support (₹317.03)

• Large loan book focused on infrastructure

• Increasing renewable energy exposure

• Strong institutional participation

REC Ltd Shareholding Pattern

High promoter holding and significant institutional ownership reflect confidence in the company’s financial strength.

REC Ltd Share Price Target 2026 to 2030

These projections are based on loan book growth, renewable financing expansion, strong dividend payouts, and infrastructure spending momentum.

Year-Wise Analysis & Investment Outlook

REC Ltd Share Price Target 2026: ₹420 – ₹460

By 2026, steady loan growth and stable asset quality may support earnings expansion.

Growth Drivers:

• Infrastructure financing growth

• Stable net interest margins

• Improved recovery from stressed assets

• Continued dividend payouts

Investment View: Suitable for income-focused investors.

REC Ltd Share Price Target 2027: ₹500 – ₹560

In 2027, higher renewable project financing may enhance loan book diversification.

Growth Drivers:

• Expansion in renewable energy lending

• Strong government policy support

• Improved credit ratings

• Consistent profitability

Investment View: Attractive for long-term investors seeking steady growth and dividends.

REC Ltd Share Price Target 2028: ₹600 – ₹680

By 2028, improved return ratios and scale benefits could drive valuation re-rating.

Growth Drivers:

• Higher infrastructure demand

• Stable asset quality

• Improved capital adequacy

• Rising institutional interest

Investment View: Suitable for investors looking for power sector exposure.

REC Ltd Share Price Target 2029: ₹720 – ₹820

By 2029, strong cash flows and diversified funding sources may strengthen financial performance.

Growth Drivers:

• Increased transmission and distribution investments

• Improved EBITDA and net margins

• Strong government electrification focus

• Long-term energy transition funding

Investment View: Favors long-term income plus growth strategy.

REC Ltd Share Price Target 2030: ₹900 – ₹1,050

By 2030, REC Ltd could solidify its position as a major infrastructure financing institution supporting India’s energy transition.

Growth Drivers:

• Continued renewable expansion

• Large infrastructure pipeline

• Strong dividend track record

• Sustainable loan growth

Investment View: Ideal for long-term investors seeking dividend yield and infrastructure exposure.

Should You Invest in REC Ltd for the Long Term?

REC Ltd offers a combination of high dividend yield (4.94%) and exposure to India’s power and infrastructure expansion. The stock trades close to its book value, providing valuation comfort relative to growth prospects.

Key Reasons to Consider Investment:

• Strong government backing

• Attractive dividend yield

• Growing renewable financing

• Large infrastructure exposure

• Stable book value support

Risks to Watch:

• Rising NPAs in the power sector

• Interest rate fluctuations

• Regulatory changes

• High volatility (Beta 1.69)

Investors should monitor quarterly asset quality, loan growth, and policy developments before making significant allocations.

Conclusion

REC Ltd stands as a critical financing arm for India’s power and renewable energy sector. With strong promoter backing, high dividend yield, and growing infrastructure demand, the company has long-term structural growth potential.

Based on projected sector expansion and loan growth, the stock could potentially reach ₹900 to ₹1,050 by 2030.

For investors seeking dividend income combined with infrastructure growth exposure, REC Ltd offers compelling long-term potential.

Frequently Asked Questions (FAQs)

1. What is the current share price of REC Ltd?
It is trading around ₹358–₹366 based on the latest market data.

2. What is the 2026 share price target?
The projected range for 2026 is ₹420 to ₹460.

3. Is REC Ltd a good long-term investment?
It may suit investors looking for dividend income and infrastructure exposure.

4. What is the share price target for 2030?
The expected range for 2030 is ₹900 to ₹1,050.

5. What factors influence the share price the most?
Loan book growth, asset quality, renewable financing expansion, interest rates, and government infrastructure policies.

Disclaimer: This article is for educational purposes only and not financial advice. Please consult a certified financial advisor before making investment decisions.