IREDA Q2FY26 Profit Rises 42% YoY to ₹549 Crore; Loan Book Expands 31%

New Delhi, October 14, 2025: Indian Renewable Energy Development Agency Limited (IREDA) registered a healthy 42% year-to-year (YoY) growth in standalone net profit to ₹549 crore in Q2FY26 from ₹387.75 crore in Q2FY25. The growth was primarily attributable to increased interest income and loan growth in the renewable energy space.

Indian Renewable Energy Development Agency Limited (NSE: IREDA, BSE: 544026) is a Government of India company at the Ministry of New and Renewable Energy. The Navratna PSU provides financing for renewable energy and energy efficiency projects in India. Since the public issue in November 2023, the company has driven the green transition in India and leads the field in climate finance.

Financial Highlights

Indian Renewable Energy Development Agency Limited (IREDA) announced healthy Q2FY26 results with total income increasing 26.2% to ₹2,057.45 crore. Profit before taxation increased 51.4% to ₹696.07 crore, and profit after taxation increased 41.6% to ₹549 crore. Total comprehensive income remained at ₹614 crore with earnings per share at ₹1.97. The net profit for the half-year ended September 2025 remained at ₹796 crore with healthy profitability.

Consolidated Results

IREDA’s consolidated income and net profit in Q2FY26 stood at ₹2,057.85 crore and ₹549.33 crore, respectively. The company’s subsidiary, IREDA Global Green Energy Finance IFSC Ltd (GIFT City), also made a modest contribution with ₹0.53 crore in profit during the period.

Asset Quality and Loan Growth

As of September 30, 2025, IREDA held total loan assets of ₹84,386.08 crore, up from ₹64,462.36 crore in the previous year. Stage I & II assets amounted to ₹81,033.16 crore, with Stage III assets at ₹3,352.92 crore, showing growth in both the performing and stressed loan segments. The impairment allowance on loan assets remained at ₹2,337 crore, with asset quality stable.

Capital and Leverage Position

Until Q2FY26, IREDA registered a net worth of ₹12,920 crore, up from ₹10,266 crore in FY25. The company’s debt-equity ratio remained at 5.41x, slightly higher than 5.35x in Q1FY26 but below 6.31x in Q1FY25. The outstanding debt increased to ₹69,939 crore, with the indication of the company’s leveraged status to sustain renewable energy financing.

It had healthy capital adequacy and an improved leverage ratio in keeping with balance sheet strength.

Management Commentary

Managing Director and Chairman Pradip Kumar Das said the third-quarter results indicate IREDA’s increasing footprint in green finance for energy. “We focus on sustainable growth and improving asset quality as we continue such support for the clean energy mission of India,” he noted.

Market Reaction

IREDA shares were trading at ₹154.8, which is a 3.24% gain as of 1:18 PM. IREDA shares have dipped 30% in the year-to-date, 7.3% in the last six months, and gained 1.54% in the last month. IREDA figures in the NIFTY Midcap 150 Index and remains actively traded following robust investor optimism after the results.

Strategic Developments

Strategically, IREDA saw its subsidiary activities in GIFT City begin contributing to consolidated performance. The company maintained a security cover of 2.61x for its non-convertible debt securities and refined its Expected Credit Loss (ECL) model to enhance the relevance of provisioning.

REF: https://nsearchives.nseindia.com/corporate/IREDAEQ_14102025101207_SignedOutcomefinancials14102025.pdf

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