IREDA Q3 Results FY26: Net Profit Jumps 38% to ₹585 Crore, NII Rises 35%
Indian Renewable Energy Development Agency Ltd (IREDA), a government-owned non-banking financial company focused on clean energy financing, delivered a strong financial performance in the third quarter of FY26. The company reported robust growth across profitability, income, loan book, and net worth, reflecting sustained momentum in India’s renewable energy financing ecosystem.
Strong Growth in Profitability
For the quarter ended December 31, 2025, IREDA reported a 37.5% year-on-year increase in net profit at ₹584.9 crore, compared with ₹425.4 crore in the corresponding quarter of the previous financial year. The sharp rise in profits was supported by higher loan disbursements, a growing asset base, and improved interest income.
The company’s revenue from operations also witnessed a healthy surge of 38%, reaching ₹2,140 crore in Q3 FY26, up from ₹1,699 crore a year ago. This growth underlines the expanding scale of IREDA’s financing activities amid rising investments in renewable energy projects across the country.
Net Interest Income Shows Robust Expansion
IREDA’s net interest income (NII), a key indicator of core lending performance, rose 34.8% year-on-year to ₹897.5 crore during the quarter, compared with ₹665.8 crore in Q3 FY25. The improvement in NII reflects higher interest-earning assets and increased lending activity during the period.
Loan Book and Disbursements Continue to Rise
The company’s total loan book expanded significantly, increasing by 27.6% year-on-year to ₹87,975 crore as of December 31, 2025, compared with ₹68,960 crore in the year-ago quarter. Although this growth was slightly lower than the pace seen in the first half of the financial year, it still highlights sustained demand for renewable energy financing.
Quarterly disbursements jumped 32% to ₹9,860 crore in the October–December period, up from ₹7,449 crore in the same quarter last year. On a cumulative basis, IREDA’s disbursements grew 44.5% during the first nine months of FY26 to ₹24,903 crore.
Sanctions and Net Worth Show Healthy Momentum
Loan sanctions recorded steady growth as well, rising by 29% in the first nine months of the financial year. While this was lower than the sharp expansion seen in the first half, it still indicates consistent project approvals in the renewable energy segment.
IREDA’s financial strength was further reinforced by a sharp increase in net worth. The company’s net worth climbed 38% to ₹13,537 crore, compared with ₹9,842 crore in the corresponding period last year, providing a stronger capital base to support future growth.
Management Commentary and Outlook
Commenting on the quarterly performance, the company’s management highlighted that the strong growth in profitability, disbursements, and net worth reflects increasing confidence among stakeholders and reinforces IREDA’s role in supporting India’s renewable energy transition.
With steady expansion in its loan book and improving financial metrics, IREDA remains well-positioned to benefit from rising investments in clean energy and government initiatives aimed at accelerating capacity addition in the renewable sector.
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