Indian Renewable Energy Development Agency LimitedQ2 FY27 Results & Financial Update
Indian Renewable Energy Development Agency Limited: Q2 FY27 consolidated results and company financials – revenue ₹2,345.86 Cr, PAT ₹552.17 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Indian Renewable Energy Development Agency Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
For the quarter ended September 30, 2026, IREDA reported consolidated revenue from operations of INR 2,345.86 crore, representing a sequential increase of 4.29% compared to INR 2,249.47 crore in the previous quarter ended June 30, 2026. Total income reached INR 2,346.89 crore.
Profit after tax (PAT) for Q2 FY27 expanded sharply to INR 552.17 crore, climbing 63.11% sequentially over INR 338.53 crore reported in Q1 FY27. Profit before tax (PBT) followed a similar trajectory, advancing 70.27% sequentially to INR 704.48 crore from INR 413.75 crore.
The notable acceleration in bottom-line profitability was underpinned by lower impairment provisions on financial instruments during the quarter, combined with steady top-line expansion in interest income which grew to INR 2,319.10 crore from INR 2,198.72 crore in the preceding quarter.
Finance costs remained the largest expenditure head, standing at INR 1,377.27 crore compared to INR 1,341.27 crore in Q1 FY27, reflecting the ongoing servicing costs of expanding domestic and foreign borrowings required to support the growing loan book.
Basic earnings per share (EPS) for the quarter rose to INR 1.97, compared to INR 1.21 in the June 2026 quarter. Tax expense for Q2 FY27 was recorded at INR 152.31 crore, up from INR 75.22 crore in the previous quarter.
On the asset front, standalone operational metrics in the company's investor presentation highlight an expanding outstanding loan book reaching INR 97,411 crore as of September 30, 2026, alongside a net worth of INR 14,337 crore.
01 · Business model
What does Indian Renewable Energy Development Agency do?
Indian Renewable Energy Development Agency Limited (IREDA) operates as a dedicated public financial institution and non-banking financial company (NBFC) specializing in green energy financing across India. Controlled primarily by the Government of India through the Ministry of New and Renewable Energy, the company holds Infrastructure Finance Company status with the Reserve Bank of India.
The core revenue engine centers on interest income derived from project term loans, refinancing facilities, and specialized debt instruments extended to renewable energy developers and state utilities. IREDA finances traditional clean energy segments such as solar, wind, and hydropower, alongside emerging technology sectors including battery energy storage systems, green hydrogen, and electric vehicle infrastructure.
The institution funds its loan portfolio through a mix of domestic bonds, bank borrowings, foreign currency credit lines, and institutional capital raises. Its economic model relies on capturing a positive spread between the yield generated on loan assets and the weighted average cost of its borrowings while maintaining asset quality across diverse clean-tech sectors.
02 · Historical context
What shaped the business before this quarter
Established as a dedicated financial institution under the erstwhile Department of Non-Conventional Energy Sources, Ministry of Energy, Government of India.
Transitioned through various classifications, ultimately securing RBI registration as a Middle Layer Non-Deposit Taking NBFC and Infrastructure Finance Company status.
Upgraded to Schedule A CPSE status in 2024 and subsequently granted Navratna status by the Department of Public Enterprises.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Total income | ₹2,346.89 Cr | ₹2,250.60 Cr |
| Interest income | ₹2,319.10 Cr | ₹2,198.72 Cr |
| Other income | ₹1.03 Cr | ₹1.13 Cr |
| Provisions | ₹191.75 Cr | — |
| Profit before tax | ₹704.48 Cr | ₹413.75 Cr |
| Profit after tax | ₹552.17 Cr | ₹338.53 Cr |
| EPS | ₹1.97 | ₹1.21 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Interest income grew sequentially to INR 2,319.10 crore in Q2 FY27 from INR 2,198.72 crore in Q1 FY27, driven by higher disbursements and a larger base of outstanding loan assets.
Standalone disclosures show the outstanding loan book expanded to INR 97,411 crore as of September 30, 2026, compared to INR 94,936 crore at the end of the previous quarter.
NIM, spread, funding cost and credit cost
The company maintained cost discipline across its funding sources, with the weighted average cost of borrowings reported at 7.20% as of September 30, 2026.
Gross yield on loan assets stood at 9.41% as of September 30, 2026, delivering an interest spread of 2.21% and an annualised net interest margin (NIM) of 3.83%.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
During the half year ended September 30, 2026, cumulative loan sanctions reached INR 23,072 crore, while total disbursements amounted to INR 17,135 crore.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
As of September 30, 2026, Solar Energy accounted for 24% (INR 23,437 crore) of the loan book, Loan Facility to State Utilities represented 20% (INR 19,318 crore), Manufacturing made up 12% (INR 12,163 crore), and Wind Power constituted 10% (INR 9,444 crore).
Hydro Power accounted for 8% (INR 7,690 crore), Ethanol projects represented 8% (INR 7,376 crore), Hybrid Wind & Solar stood at 6% (INR 5,787 crore), and smaller allocations went to Smart Meters, EV infrastructure, and Green Hydrogen.
Geography and market mix
Loan portfolio distribution across states showed Rajasthan leading with 16.16% (INR 15,738 crore) of the gross loan portfolio, followed by Andhra Pradesh at 10.99% (INR 10,701 crore), Telangana at 10.40% (INR 10,136 crore), and Karnataka at 9.13% (INR 8,892 crore).
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
IREDA's International Financial Services Centre (IFSC) subsidiary, IGGEFIL, secured a 'BBB+/Stable' international credit rating and proceeded with foreign currency loan activities, including external commercial borrowings.
08 · Reported developments
What changed operationally
IREDA maintained top-tier domestic long-term credit ratings of 'AAA (Stable)' from agencies including ICRA, India Ratings, Acuité, CARE Ratings, and Brickwork, alongside an international long-term rating of 'BBB (Stable)' from S&P Global.
Standalone gross NPA ratio improved to 3.57% (INR 3,482 crore) as of September 30, 2026, compared to 3.76% (INR 3,568 crore) as of June 30, 2026. Net NPA ratio improved to 1.08% (INR 1,029 crore) from 1.23% (INR 1,134 crore) over the same period.
09 · Items worth noticing
The line items that can distort a quick read
Standalone financial statement disclosures note impairment on financial instruments of INR 187 crore for Q2 FY27, compared to INR 419 crore in Q1 FY27.
10 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Total borrowings stood at INR 80,882 crore as of September 30, 2026, comprising INR 69,378 crore in domestic borrowings and INR 11,505 crore in foreign borrowings.
Domestic borrowings comprised INR 33,180 crore in bonds and INR 36,198 crore in bank loans and other credit lines. Foreign borrowings totaled INR 11,505 crore, of which 82% (INR 9,477 crore) was hedged.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
ESG and Sustainability Reporting
IREDA released its first-ever ESG Report for FY26 at its Annual General Meeting on September 29, 2026, aligned with national and global frameworks including NGRBC, GRI, SASB, and UNSDG standards.
12 · Previous-quarter changes
What changed since the previous quarter
Gross NPAs decreased from INR 3,568 crore in Q1 FY27 to INR 3,482 crore in Q2 FY27, with the gross NPA ratio tightening by 19 basis points to 3.57%.
13 · Key Q&A
The quarter, answered directly
What does Indian Renewable Energy Development Agency do?
Indian Renewable Energy Development Agency Limited (IREDA) operates as a dedicated public financial institution and non-banking financial company (NBFC) specializing in green energy financing across India. Controlled primarily by the Government of India through the Ministry of New and Renewable Energy, the company holds Infrastructure Finance Company status with the Reserve Bank of India.
What is the clearest takeaway from Q2 FY27?
For the quarter ended September 30, 2026, IREDA reported consolidated revenue from operations of INR 2,345.86 crore, representing a sequential increase of 4.29% compared to INR 2,249.47 crore in the previous quarter ended June 30, 2026. Total income reached INR 2,346.89 crore.
What drove earnings or loan-book movement?
Interest income grew sequentially to INR 2,319.10 crore in Q2 FY27 from INR 2,198.72 crore in Q1 FY27, driven by higher disbursements and a larger base of outstanding loan assets.
What mattered most for margins, funding or credit cost?
The company maintained cost discipline across its funding sources, with the weighted average cost of borrowings reported at 7.20% as of September 30, 2026.
What changed operationally beyond the headline numbers?
IREDA's International Financial Services Centre (IFSC) subsidiary, IGGEFIL, secured a 'BBB+/Stable' international credit rating and proceeded with foreign currency loan activities, including external commercial borrowings.
What should the next disclosure help confirm?
Monitor the pace of sanctions and disbursements across solar, wind, and emerging green technologies against the INR 97,411 crore baseline.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Loan Book Expansion: Monitor the pace of sanctions and disbursements across solar, wind, and emerging green technologies against the INR 97,411 crore baseline.
- 02
Asset Quality and Provisioning: Track future movements in gross and net NPA ratios alongside provision coverage levels.
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