Abhishek Sinha
By Niveshvani Business Desk | Updated: October 14, 2025, 11:00 AM IST
The Indian Renewable Energy Development Agency (IREDA) — a Navratna PSU and key financier in India’s green energy transition — has reported another quarter of robust growth. The company’s Q2FY26 standalone profit surged 41.6% year-on-year (YoY) to ₹549 crore, driven by strong loan growth and higher net interest margins.
🔹 Key Highlights: IREDA Q2FY26 Financial Performance
| Metric | Q2FY26 | Q2FY25 | Change (YoY) |
|---|---|---|---|
| Net Profit | ₹549 crore | ₹387.75 crore | ▲ 41.6% |
| Revenue from Operations | ₹2,056.88 crore | ₹1,629.55 crore | ▲ 26.2% |
| Operating Profit | ₹776 crore | ₹503 crore | ▲ 54% |
| Total Expenses | ₹1,361.38 crore | ₹1,170.47 crore | ▲ 16.3% |
| Gross NPA | ₹3,353 crore | ₹1,415 crore | ▲ 137% |
| Net NPA | ₹1,627 crore | ₹666 crore | ▲ 144% |
🔸 Operational and Financial Ratios
| Parameter | Q2FY26 | Q2FY25 |
|---|---|---|
| Gross Yield on Loan Assets | 9.87% | 9.92% |
| Net Interest Margin (NIM) | 3.72% | 3.34% |
| Debt-Equity Ratio | 5.41 | 5.85 |
| Earnings Per Share (EPS) | ₹2.88 | ₹2.87 |
| Provision Coverage Ratio | 51.48% | 52.98% |
🔹 Strong Growth Momentum
The PSU lender’s revenue from operations rose sharply to ₹2,056.88 crore, a 26% YoY increase, backed by continued loan disbursements to renewable energy and green infrastructure projects.
Operating profit grew 54% YoY to ₹776 crore, indicating improved cost efficiency and margin strength.
The company’s annualised NIM improved to 3.72% in Q2FY26 from 3.34% a year ago, reflecting a healthy spread between lending and borrowing costs.
🔸 Rising NPAs a Key Concern
While profitability remains strong, asset quality pressures are visible.
Gross NPAs more than doubled to ₹3,353 crore, and net NPAs rose to ₹1,627 crore YoY, partly due to stress in legacy renewable projects and delays in payment collections from state utilities.
Despite this, the provision coverage ratio remains comfortable at over 51%, and management expects recoveries to improve in the coming quarters.
🔹 Strategic Focus: Financing India’s Green Growth
IREDA continues to play a pivotal role in India’s renewable energy financing ecosystem, with a focus on solar, wind, bioenergy, and emerging segments such as green hydrogen and battery storage.
The company’s management recently indicated plans to expand its loan book and green infrastructure partnerships, aligning with India’s 500 GW renewable energy target by 2030.
Analysts expect IREDA’s strong government backing, improved cost of funds, and policy tailwinds to sustain growth momentum in FY26.
🔸 Outlook
Market observers remain bullish on IREDA’s performance trajectory, citing:
- Rising demand for renewable project financing.
- Improved margins amid falling funding costs.
- Continued government focus on sustainable energy.
However, analysts also caution that elevated NPAs could be a short-term drag if recoveries are delayed.
In Summary:
IREDA’s Q2FY26 results reaffirm its position as India’s leading green finance PSU, delivering consistent growth and profitability while navigating asset quality challenges. As India accelerates toward its clean energy goals, IREDA’s strategic role and operational resilience are expected to drive long-term shareholder value.
Disclaimer:
This article is for informational purposes only and should not be considered investment advice. The data and views presented are based on publicly available information. Niveshvani.in does not provide buy or sell recommendations. Investors are advised to consult financial experts before making investment decisions.
