The Indian Renewable Energy Development Agency (IREDA) has announced a robust financial performance for the second quarter of the 2026 fiscal year, highlighting its pivotal role in financing India's green energy transition. For investors and market analysts questioning the company's growth trajectory, IREDA reported a significant 41.5% year-on-year (YoY) increase in net profit, driven by exceptional growth in loan sanctions and disbursements, alongside improved asset quality. This analysis breaks down the key performance indicators and what they mean for the company's future outlook.
Table of Contents
- What Were IREDA's Key Financial Numbers in Q2 FY26?
- How Strong Was IREDA's Operational Performance and Asset Quality?
- What is the Investment Outlook for IREDA After These Results?
- Frequently Asked Questions (FAQs)
IREDA's financial results for the quarter ending 30 September 2025 showcase strong growth across all major financial metrics when compared to the same period in the previous year. The company's consolidated net profit reached Rs. 549.33 crore, a substantial rise from the previous year.
Here is a detailed comparison of IREDA's Q2 FY26 performance:
| Metric |
Q2 FY26 |
YoY Growth |
| Net Profit |
Rs 549.33 Cr |
41.5% |
| Revenue |
Rs.2,057 Cr |
26.2% |
| NII |
Rs 817 Cr |
49.5% |
| Profit Before Tax |
Rs 696 Cr |
51.3% |
| Loan Sanctions |
Rs 21,408 Cr |
145% |
| Loan Disbursements |
Rs 8,062 Cr |
81% |
On a sequential basis, the performance was even more impressive, with net profit more than doubling in a 122% increase from the Rs. 247 crore reported in the first quarter of FY26.
Check the IREDA share price, full financial details, stock performance, and key metrics of IREDA to make informed decisions.
The strong financial results were underpinned by significant momentum in core business operations and a notable improvement in the health of its loan portfolio.
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Loan Sanctions: For the first half of FY26 (April to September 2025), loan sanctions surged by 86% YoY to Rs. 33,148 crore, indicating a strong future pipeline.
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Loan Disbursements: Disbursements grew by 54% YoY to Rs. 15,043 crore in the same period, reflecting efficient project execution.
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Loan Book Growth: The total outstanding loan book stood at Rs. 84,445 crore as of 30 September 2025, a 31% increase from the previous year.
Crucially, the company also improved its asset quality, a key concern for any financial institution.
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Gross Non-Performing Assets (NPA): Improved to 3.97% from 4.13% in the previous quarter (Q1 FY26).
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Net Non-Performing Assets (NPA): Improved to 1.97% from 2.06% in the previous quarter, suggesting better risk management and recovery processes.
See how other companies are performing this quarter and compare IREDA’s results with the latest earnings reports. Check out the top company result here.
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Want to understand how IREDA’s Q2 performance could impact its share price over the next year? Watch this expert analysis on IREDA’s potential returns in the coming months.
For investors, IREDA's Q2 performance signals a strong growth trajectory backed by solid fundamentals. The substantial increase in loan sanctions points to robust demand for renewable energy financing, a high-priority sector for the Indian government.
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Renewed Investor Confidence: Following the announcement, IREDA's shares jumped 3% to 4%. While the stock has declined over 30% year-to-date, this strong quarterly performance could renew investor confidence.
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Improved Profitability: The expansion in Net Interest Income was supported by a reduction in the company's cost of borrowing to 7.24% in Q2 FY26, enhancing profitability.
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Positive Outlook: The combination of a consistently growing loan book, rising profitability, and improving asset quality presents a positive outlook. It underscores IREDA's central position in financing India's sustainable energy goals.
What was IREDA's net profit in Q2 FY26?
IREDA reported a consolidated net profit of Rs. 549.33 crore for Q2 FY26, a 41.5% increase compared to the same quarter last year.
Why did IREDA's profit increase so significantly?
The profit jump was primarily driven by a 145% surge in loan sanctions and an 81% increase in loan disbursements. Additionally, a higher Net Interest Income (NII) and improved asset quality contributed to the strong performance.
Did IREDA's asset quality improve in Q2 FY26?
Yes, IREDA's asset quality showed improvement. The Gross NPA ratio decreased to 3.97% and the Net NPA ratio fell to 1.97%, indicating better control over bad loans.
How did IREDA's stock price react to the Q2 results?
Following the announcement of its strong Q2 FY26 results, IREDA's share price saw an immediate jump of 3% to 4%, trading between Rs. 154.55 and Rs. 155.85.
What is the business of IREDA?
The Indian Renewable Energy Development Agency (IREDA) is a state-owned enterprise under the Ministry of New and Renewable Energy. Its primary business is to promote, develop, and extend financial assistance for setting up projects relating to new and renewable sources of energy.