New Delhi: State-run Indian Renewable Energy Development Agency Ltd (IREDA) has reported a 41 percent year-on-year rise in consolidated net profit to Rs 549 crore in Q2 FY26, compared with Rs 388 crore a year earlier, aided by record loan disbursements and an expanding renewable financing portfolio.
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For the half-year ended September 30, 2025, IREDA’s consolidated profit stood at Rs 796 crore, up 3 percent from Rs 771 crore in H1 FY25. Total income for the period grew 28 percent to Rs 4,018 crore, driven by higher interest income of Rs 3,940 crore from renewable, e-mobility and energy storage projects.
The renewable energy financier’s loan book rose 31 percent year-on-year to Rs 84,477 crore, compared with Rs 64,564 crore in Q2 FY25. Loan disbursements surged 81 percent to Rs 8,062 crore, while sanctions more than doubled (up 145 percent) to Rs 21,408 crore.
Revenue from operations for the quarter increased 26 percent to Rs 2,057 crore, reflecting the steady build-up of renewable and energy-transition financing demand.
Commenting on the results, Pradip Kumar Das, Chairman and Managing Director, said, “IREDA’s consistent growth across quarters underscores our strategic focus and execution excellence. Our expanding loan book and strong financials are a testament to the trust placed in us by stakeholders and highlight our role as a key enabler in India’s clean energy ecosystem.”
He also thanked the Ministry of New and Renewable Energy and the Board for their continued support, adding that IREDA remains committed to financing emerging green sectors such as hydrogen, storage, and EV infrastructure.
Finance costs climbed to Rs 2,431 crore in H1 FY26 from Rs 2,005 crore a year earlier due to higher borrowing costs, but net interest margins remained stable. The company strengthened its risk buffers, increasing impairment provisions to Rs 433 crore from Rs 3.8 crore last year.
Cumulative expected credit loss (ECL) allowance rose to Rs 2,349 crore from Rs 1,688 crore, reflecting a cautious stance on asset quality. Loans amounting to Rs 407 crore under court protection continue to be treated as standard, with income recognised only upon collection.
IREDA’s gross non-performing asset (GNPA) ratio increased to 3.97 percent in H1 FY26, compared with 2.19 percent in H1 FY25, while the net NPA ratio rose to 1.97 percent from 1.04 percent. The rise reflects stress in a few legacy accounts, though asset quality remains within manageable limits.
The company’s capital adequacy ratio (CRAR) stood at a robust 20.10 percent, comfortably above the regulatory minimum, even after adopting a 100 percent risk weighting for commissioned renewable assets. The debt-equity ratio improved to 5.41 from 5.85 in H1 FY25, supported by higher retained earnings. Net worth rose 38 percent year-on-year to Rs 12,920 crore, driven by internal accruals and strong loan growth.
With a loan pipeline exceeding Rs 1.25 lakh crore and a diversified funding base including perpetual bonds, IREDA is poised to scale lending across solar, wind, green hydrogen, battery storage, and EV charging infrastructure.
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Das said IREDA’s focus in the coming quarters will be to “enable faster, equitable, and sustainable access to green finance” as India races towards its 500 GW renewable energy capacity target by 2030.
