IREDA posts record Rs 1,873 crore profit in FY26

Indian Renewable Energy Development Agency (IREDA) reported its highest-ever annual profit after tax (PAT) of Rs 1,873 crore for FY 2025-26, registering a 10% increase over Rs 1,699 crore recorded in FY25.

The company’s Board recommended a final dividend of Rs 0.75 per equity share, equivalent to 7.5% of face value, subject to shareholder approval at the Annual General Meeting. Along with the interim dividend of Rs 0.60 per share, the total dividend for FY26 stands at Rs 1.35 per share.

IREDA’s revenue from operations increased 23% year-on-year to Rs 8,309 crore. Operating profit before depreciation, impairment, and tax rose 33% to Rs 3,158 crore. The company’s loan book expanded 22% to Rs 93,069 crore as of March 31, 2026.

Loan sanctions during FY26 rose 39% to Rs 51,883 crore, while disbursements increased 16% to Rs 34,946 crore. Net worth grew 34% year-on-year to Rs 13,781 crore.

On the asset quality front, gross non-performing assets (NPA) increased to 3.49% from 2.45% in the previous year, following fresh NPA additions of Rs 1,607 crore during FY26. However, net NPA improved marginally to 1.29% from 1.35%. The provision coverage ratio strengthened to 63.88% from 45.31%, reflecting higher provisioning levels.

The company’s net interest margin widened to 3.65% from 3.27%, supported by a reduction in borrowing costs to 7.05% compared to 7.61% in FY25.

Solar energy accounted for 26% of IREDA’s outstanding loan portfolio, followed by loans to state utilities at 23% and wind power at 11%. Private sector borrowers constituted 71% of the overall portfolio.

For the fourth quarter of FY26, revenue from operations stood at Rs 2,175 crore, up 14% year-on-year. Quarterly PAT declined 2% to Rs 493 crore, mainly due to a 66% increase in impairment provisions, which rose to Rs 215 crore.

During FY26, the company received Navratna status, completed a qualified institutional placement (QIP) raising Rs 2,005.90 crore, issued perpetual bonds worth Rs 1,247 crore, and secured a JPY 26 billion external commercial borrowing facility from State Bank of India (SBI) Tokyo.

Chairman and Managing Director Pradip Kumar Das said the results reflected the company’s consistent strategy and institutional resilience, adding that IREDA remained focused on responsible growth as India’s green energy transition gathers pace.