IREDA Q1 profit rises 37% as loan book nears Rs 95,000 crore

The Indian Renewable Energy Development Agency Ltd. (IREDA) reported a 37% year-on-year increase in standalone profit after tax for the quarter ended June 30, 2026, supported by continued growth in its lending business, while maintaining stable asset quality despite higher impairment provisions during the quarter.

The Navratna public sector enterprise posted a standalone profit after tax of Rs 338 crore for Q1 FY2027, compared with Rs 247 crore in the corresponding quarter of the previous year. However, profit declined sequentially from Rs 493 crore reported in the preceding quarter due to higher impairment provisions.

Revenue from operations increased 15% year-on-year to Rs 2,248 crore, while the company’s outstanding loan book expanded 19% to Rs 94,936 crore as of June 30, 2026.

Asset quality

IREDA continued to improve its asset quality during the quarter. Its Gross Non-Performing Assets (NPA) ratio declined to 3.76% as of June 30, 2026, from 4.13% a year earlier, while the Net NPA ratio fell to 1.23% from 2.06%.

The Provision Coverage Ratio improved to 68.22%, reflecting higher provisioning against stressed assets.

Borrowing profile

The company’s total outstanding borrowings stood at Rs 79,002 crore at the end of the quarter. Domestic borrowings accounted for 86% of the total borrowing portfolio, while international borrowings comprised the remaining 14%.

IREDA said 83% of its foreign borrowings are hedged against currency risk. The company maintained a capital adequacy ratio of 20.30%.

Capital initiatives

During the period, IREDA received approval from the Ministry of Finance to issue 54EC Bonds, a move aimed at strengthening its capital base.

The company’s loan portfolio remains primarily focused on renewable energy and related sectors, with solar accounting for 26% of the portfolio, state utilities 19%, and wind power 11%.