Synopsis:
Indian Renewable Energy Development Agency jumped sharply after the company’s revenue rose 26% YoY to Rs 2,030 crore, while net profit doubled to Rs 549 crore QoQ. Asset quality improved with GNPA at 3.97% and NNPA at 1.97%, and the cost of borrowing fell to 7.24%, reflecting stronger financial efficiency and growth momentum in the renewable financing space.
The shares of this leading Navratna PSU engaged in the business of green energy financing are in focus after a stellar Q2 FY26 performance. In this article, we will dive more into the details.
With a market capitalization of Rs 42,560 crore, the shares of Indian Renewable Energy Development Agency Ltd made a day high of Rs 155.65 per share, up by 5 percent from its day’s low of Rs 148.25 per share. In the last one year, the stock has corrected by over 38 percent, as compared to NIFTY 50’s return of 0.33 percent.
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Q2 Highlights
IREDA has reported a total revenue from operations of Rs 2,057 crore in Q2 FY26, a growth of 26 percent as compared to Rs 1,630 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 6 percent from Rs 1,948 crore.
Regarding its profitability, it reported a net profit of Rs 549 crore in Q2 FY26, a growth of 42 percent as compared to Rs 388 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by a staggering 123 percent from Rs 247 crore.
Coming to asset quality, it reported a GNPA of 3.97 percent in Q2 FY26 as compared to 4.13 percent in its previous quarter. Additionally, its NNPA also improved to 1.97 percent in Q2 FY26 as compared to 2.06 percent during the same period.
On a year-on-year basis, the company’s Net Interest Margin (NIM) improved to 3.72 percent in Q2 FY26 from 3.34 percent in Q2 FY25, reflecting better lending profitability and efficient deployment of funds.
The Cost of borrowing declined notably to 7.24 percent from 7.80 percent, indicating improved funding efficiency and a more favorable borrowing mix. Meanwhile, the Provision Coverage Ratio (PCR) slightly decreased to 51.48 percent from 52.98 percent, suggesting a marginal reduction in buffer levels against potential loan losses, though it still remains at a healthy level, highlighting prudent risk management.
Indian Renewable Energy Development Agency Limited (IREDA) is a non-banking financial institution that provides financial assistance for renewable energy and energy efficiency projects in India. The company assists in funding and supporting projects based on solar, wind, hydro, and waste-to-energy resources, as well as energy conservation projects.
Written by Satyajeet Mukherjee
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