Maharatna PSU power financier REC Limited on Monday announced a fourth interim dividend of ₹3.20 per share and fixed Friday, March 20, as the record date to determine eligible shareholders.
“…this is to inform that the Board of Directors ofREC Limited (“REC” / “the Company”) in its meeting held on March 16, 2026, considered and declared 4″‘ interim dividend @ 32% (i.e. ~3.20 · per equity share offace value oHlO/ – each) for the financial year 2025-26,” it informed in an exchange filing.
The company further stated that the dividend will be paid on or before April 14. The decision was approved at its board meeting and disclosed during market hours, with the stock trading marginally higher at ₹332.65 on the NSE.
“Further, the record date for the said interim dividend is fixed as Friday, March 20,2026 and the said interim dividend shall be paid on or before April 14, 2026 to those shareholders, whose names appear (i) as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on March 20,2026 in respect of shares held in electronic form; and (ii) as members in the register of members on March 20, 2026 in respect of physical shares,” it added.
Earlier, the company had also declared a third interim dividend of ₹4.30 per share for FY25 and had fixed February 14 as the record date for that payout.
Taxation on Dividends
REC Limited further informe that, in accordance with the provisions of the Income Tax Act, 1961, dividend income is taxable in the hands of shareholders, and the company is required to deduct tax at source (TDS) at the applicable rates while making dividend payments.
The company reiterated, in continuation of its earlier communications dated July 24, 2025, October 17, 2025, and January 29, 2026, that shareholders seeking a lower TDS rate or exemption must submit the necessary documents. These include a scanned copy of PAN, Form 15G or 15H, and other relevant documents for the financial year 2025–26. The documents must be submitted via email on or before March 20, 2026, unless already provided. Shareholders can also upload the required details through the designated online portal. REC added that no requests for lower tax deduction or exemption would be entertained after the deadline.
Further, the company noted that, following recent amendments to listing regulations, dividend payments will now be made exclusively through electronic mode. The earlier provision of issuing dividends via physical instruments such as cheques or warrants has been discontinued.
In light of this, shareholders have been advised to ensure that their bank account details are updated. For shares held in demat form, investors should contact their respective depository participants (DPs) to update bank details. For shares held in physical form, shareholders need to approach the company’s registrar and transfer agent (RTA) and complete the required KYC and bank detail updates by submitting the necessary documents.
REC Share performance
Despite its strong dividend track record, REC’s stock performance has remained under pressure, declining 20% over the past year.
Meanwhile, the PSU stock fell 14% in past 6 months, and 8% in last 1 month. However, in long term, the scrip gave multibagger returns, rallying 192% in 5 years.
It added 0.9% in today’s deals to its day’s high of ₹335.30 on BSE.
The weakness comes amid broader market volatility, initially triggered by tariff-related concerns and more recently due to escalating geopolitical tensions from the ongoing Iran-Israel conflict.
In comparison, benchmark indices have shown relative resilience, with the Nifty 50 gaining about 3% and the BSE Sensex rising around 1% over the same period.
What are dividend and record date?
A dividend is a portion of a company’s profits that is distributed to its shareholders as a reward for holding the stock. It is typically announced on a per-share basis, meaning investors receive a fixed amount for each share they own.
The record date, on the other hand, is the cut-off date set by the company to determine which shareholders are eligible to receive the dividend. Investors must own the shares before this date (typically by the ex-dividend date) to qualify for the payout.
REC Q3 Results
On the financial front, REC reported a 15% year-on-year rise in net profit to ₹11,574.25 crore for the December quarter, compared to ₹10,066.31 crore in the corresponding period last year.
Revenue from operations grew 17.81% year-on-year to ₹41,033.01 crore for the quarter ended December 31, 2024, versus ₹34,827.57 crore a year ago. Total income, including other income, stood at ₹41,085.66 crore, up from ₹34,864.57 crore in the previous year.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
