IREDA Q1 FY27 Results: PAT Rises 37% YoY, Loan Book Crosses ₹94,900 Crore
The Indian Renewable Energy Development Agency Limited (IREDA) has released its investor presentation for the quarter ended June 30, 2026, showcasing strong growth in profitability, loan assets, and renewable energy financing. India’s largest pure-play green financing NBFC continued to strengthen its position with a growing loan portfolio, improved asset quality, and robust capitalization despite a softer sequential quarter.
Strong Profit Growth in Q1 FY27
IREDA reported revenue from operations of ₹2,248 crore during Q1 FY27, registering a 15% year-on-year (YoY) increase from ₹1,947 crore in the corresponding quarter last year.
Key standalone financial highlights include:
- Revenue from Operations: ₹2,248 crore (+15% YoY)
- Operating Profit: ₹841 crore (+24% YoY)
- Profit Before Tax (PBT): ₹413 crore (+35% YoY)
- Profit After Tax (PAT): ₹338 crore (+37% YoY)
- Net Worth: ₹14,133 crore (+14% YoY)
- Outstanding Loan Book: ₹94,936 crore (+19% YoY)
While profitability improved significantly compared to the previous year, PAT and PBT moderated sequentially compared to Q4 FY26 due to higher borrowing costs and provisioning.
Consolidated Financial Performance
Alongside its standalone performance, IREDA also reported healthy consolidated financial results for the quarter ended June 30, 2026.
Consolidated Q1 FY27 Highlights
| Particulars | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹2,249 crore | ₹1,948 crore | 15% |
| Profit Before Tax (PBT) | ₹414 crore | ₹305 crore | 36% |
| Profit After Tax (PAT) | ₹339 crore | ₹247 crore | 37% |
The consolidated performance closely mirrors the standalone results, reflecting the limited contribution from IREDA’s overseas subsidiaries at this stage. Revenue from operations increased by 15% year-on-year, while profit before tax and profit after tax grew by 36% and 37%, respectively.
The consolidated financials include the performance of:
- Indian Renewable Energy Development Agency Limited (Parent Company)
- IREDA Global Green Energy Finance IFSC Limited (IGGEFIL)
The steady consolidated growth highlights IREDA’s expanding financing activities across both domestic and international renewable energy initiatives while maintaining healthy profitability.
Loan Book Nears ₹95,000 Crore
IREDA’s outstanding loan portfolio expanded to ₹94,936 crore as of June 30, 2026, compared to ₹79,941 crore a year earlier.
The portfolio remains well diversified across renewable energy sectors:
| Sector | Share of Loan Book |
|---|---|
| Solar Energy | 26% |
| State Utilities | 19% |
| Wind Power | 11% |
| Renewable Manufacturing | 11% |
| Hydro Power | 8% |
| Ethanol Projects | 8% |
| Hybrid Wind & Solar | 6% |
| Others | 11% |
Private sector borrowers account for 77% of the total loan portfolio, while public sector entities contribute the remaining 23%.
Renewable Energy Financing Continues to Expand
During Q1 FY27:
- Loan Sanctions: ₹3,380 crore
- Loan Disbursements: ₹6,556 crore
IREDA continues financing a broad range of clean energy segments including:
- Solar
- Wind
- Hydropower
- Battery Energy Storage Systems (BESS)
- Green Hydrogen
- Electric Vehicle Infrastructure
- Smart Meter Projects
- Pumped Storage Projects
- Ethanol
- Energy Efficiency
Asset Quality Remains Healthy
Although Gross NPAs increased in absolute terms due to portfolio expansion, asset quality remained relatively stable.
| Metric | Q1 FY27 | Q1 FY26 |
|---|---|---|
| Gross NPA | ₹3,568 crore | ₹3,302 crore |
| Gross NPA Ratio | 3.76% | 4.13% |
| Net NPA | ₹1,134 crore | ₹1,615 crore |
| Net NPA Ratio | 1.23% | 2.06% |
Provision Coverage Ratio improved sharply to 68.22%, compared to 51.10% a year ago.
Healthy Margins and Strong Capital Position
IREDA maintained healthy profitability metrics despite a rising interest rate environment.
Key financial ratios include:
- Gross Yield on Loan Assets: 9.46%
- Cost of Borrowings: 7.12%
- Interest Spread: 2.34%
- Net Interest Margin (NIM): 3.75%
- Capital Adequacy Ratio (CRAR): 20.30%
- Debt-to-Equity Ratio: 5.59x
Borrowings Cross ₹79,000 Crore
Total outstanding borrowings increased to ₹79,002 crore.
Borrowing mix:
- Domestic Borrowings: ₹67,673 crore (86%)
- Foreign Borrowings: ₹11,329 crore (14%)
Importantly, 83% of foreign borrowings are hedged, reducing currency risk.
During Q1 FY27, IREDA raised approximately ₹4,991 crore through fresh borrowings.
Strong Credit Ratings
IREDA continues to enjoy top-tier credit ratings:
- Multiple domestic agencies have assigned AAA (Stable) ratings.
- Internationally, the company holds a BBB (Stable) rating from S&P Global.
These ratings support the company’s ability to raise funds at competitive costs.
Government Backing Remains Strong
The Government of India continues to hold 71.76% equity in IREDA through the Ministry of New and Renewable Energy (MNRE).
Other notable shareholders include:
- Resident Individuals – 21.98%
- LIC – 2.21%
- FIIs & FPIs – 2.48%
ESG and Green Finance Leadership
IREDA continues strengthening its ESG framework with:
- Third Business Responsibility and Sustainability Report (BRSR) under preparation with reasonable assurance.
- First Sustainability Report under finalization.
- Comprehensive ESG Policy implemented.
- Environmental and Social Risk Assessment framework for project financing.
- ESG awareness initiatives for employees, directors, and value chain partners.
Business Outlook
India’s renewable energy capacity continues to expand rapidly, with the country having already achieved nearly 297 GW of non-fossil fuel-based installed capacity by June 2026 and targeting 500 GW by 2030.
As the government’s dedicated renewable energy financing institution and a Navratna CPSE, IREDA is well positioned to benefit from rising investments across solar, wind, energy storage, green hydrogen, electric mobility, and transmission infrastructure.
With a growing loan book, improving asset quality, strong capital base, and continued government support, IREDA remains one of India’s leading financiers driving the country’s clean energy transition.