IREDA announces Q3 FY26 results today with market attention centered on asset quality trends and the timeline for a potential ₹3,000 crore Qualified Institutional Placement (QIP). According to analysts, the results are expected to reflect strong fundamentals driven by continued loan growth and renewable energy sector tailwinds. Seema Srivastava from SMC Global Securities expects positive results driven by strong loan growth and stable earnings, with loan disbursements likely to rise in double digits and loan sanctions showing modest increases. Shares closed 3.3% lower at ₹141.18 on Thursday, reflecting market caution ahead of the results announcement. The stock has faced significant pressure, declining 35% in 2025 compared to a 10.5% rise in the benchmark Nifty 50.
Despite recent underperformance, IREDA is showing encouraging technical signals after forming a well-defined double bottom pattern, indicating potential trend reversal according to Jigar S. Patel from Anand Rathi Share and Stock Brokers. The setup is supported by bullish divergence and RSI trendline breakout, reflecting renewed buying interest, while MACD has generated a bullish crossover. The stock has managed to close above its 10-DEMA, highlighting short-term strength. Traders may consider buying on dips in the ₹145-142 zone with potential upside toward ₹160, according to technical analysis. A strict stop loss should be maintained at ₹134 on a daily closing basis to manage risk.
According to the latest business update, IREDA's loan book grew 27.6% year-on-year to ₹87,975 crore, representing a moderation from the 31% growth achieved in the first half of FY26. While nine-month performance remained strong with disbursements growing 44.5% to ₹24,903 crore and sanctions increasing 29%, quarterly trends showed deceleration. For Q3 specifically, disbursements declined 5.5% while sanctions nearly halved compared to the same period last year. However, Khushi Mistry from Bonanza highlighted that provisional updates show 29% YoY loan sanctions growth and 28% loan book expansion, suggesting continued operational strength despite some quarterly volatility.
Asset quality remains a key focus area following the Gensol Engineering issue that significantly impacted IREDA's portfolio during the June quarter. The company showed marginal improvement in Q2 FY26 with gross NPA declining to 3.97% from 4.13% in Q1 and net NPA reducing to 1.97% from 2.06%. Analysts expect net interest margins (NIMs) and asset quality to improve further during Q3, according to SMC Global Securities. Market participants will closely monitor whether this improvement trend continued, given the heightened focus on asset quality metrics and key parameters including net interest income (NII), profit after tax (PAT), and NPA ratios.
The company's Q2 FY26 results had demonstrated strong financial performance with consolidated net profit rising 41.67% to ₹549.33 crore compared to ₹387.75 crore in the same period of the previous fiscal year. Consolidated revenue from operations advanced 26.24% to ₹2,057.28 crore in the September quarter, up from ₹1,629.55 crore in the year-ago period. Previous comparable quarters have demonstrated healthy profitability and steady expansion in net worth, supported by strong growth in interest income, according to analyst observations. These figures had set positive expectations for Q3 results, though recent market volatility has created cautious sentiment.
