The Indian Renewable Energy Development Agency (IREDA), a Navratna public sector enterprise under the Ministry of New & Renewable Energy (MNRE), announced robust financial performance for the July–September quarter of FY26 on October 14, 2025. The state-owned non-banking financial company (NBFC) reported a strong year-on-year (YoY) rise in profitability and revenue, reflecting its growing role in supporting India’s clean energy transition.
Quarterly Financial Performance
IREDA’s standalone net profit for the second quarter of FY26 stood at ₹549 crore, marking a 41% increase from ₹387.75 crore in the same period last year. The company’s total standalone revenue from operations grew by 26.2% YoY, reaching ₹2,056.88 crore in Q2FY26, up from ₹1,629.55 crore in Q2FY25.
The PSU’s operating profit rose sharply by 54%, climbing from ₹503 crore to ₹776 crore year-on-year, driven by higher disbursements and efficient financial management.
Strong Growth in Loan Portfolio and Sanctions
During the September quarter, IREDA’s loan book expanded by 31%, reaching ₹84,477 crore, compared to ₹64,564 crore in the corresponding quarter of the previous financial year. The company also witnessed a substantial increase in loan sanctions, which rose 145% YoY to ₹21,408 crore from ₹8,724 crore a year earlier.
Similarly, loan disbursements during the quarter surged 81%, totalling ₹8,062 crore against ₹4,462 crore in Q2FY25. This indicates the company’s active financing role in renewable energy and infrastructure projects nationwide.
As of September 2025, IREDA’s net worth stood at ₹12,920 crore, representing a 38% increase from ₹9,336 crore in the previous year.
Financial Ratios and Key Metrics
The company maintained stable financial indicators during the quarter:
- Gross yield on loan assets: 9.87% (vs. 9.92% YoY)
- Annualised Net Interest Margin (NIM): 3.72% (up from 3.34% in Q2FY25)
- Debt-to-equity ratio: 5.41 (improved from 5.85 YoY)
- Earnings per share (EPS): ₹2.88 (compared to ₹2.87 YoY)
- Provision coverage ratio: 51.48% (vs. 52.98% in Q2FY25)
While gross and net non-performing assets (NPAs) rose to ₹3,353 crore and ₹1,627 crore, respectively, IREDA continued to maintain prudent provisioning and capital adequacy levels.
Management Commentary
Pradip Kumar Das, Chairman and Managing Director of IREDA, highlighted the company’s consistent performance across quarters as a reflection of its strategic focus and operational efficiency. He stated,
“IREDA’s consistent growth underscores our execution excellence and commitment to enabling India’s clean energy ecosystem. Expansion in our loan book and strong financials affirm our position as a key facilitator in the renewable sector.”
Role in India’s Renewable Energy Growth
Functioning under the MNRE, IREDA plays a pivotal role in financing renewable energy and energy efficiency projects across India. The agency’s expanding loan portfolio underscores its importance in driving the country’s green transition and supporting sustainable energy development.
The company’s performance in Q2FY26 demonstrates the increasing demand for financing in the renewable energy sector, bolstered by policy initiatives and private participation in clean power generation.
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Conclusion
IREDA’s strong Q2FY26 performance reflects its resilience and growing influence in India’s renewable energy finance ecosystem. With profits rising over 40%, revenue growth exceeding 25%, and loan sanctions more than doubling, the organisation continues to deliver steady value while advancing the nation’s sustainability agenda.
Its expanding loan book and robust operational performance reinforce IREDA’s position as a key financial enabler for India’s green future.
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