According to a regulatory filing dated January 9, Indian Renewable Energy Development Agency Ltd (IREDA) delivered robust financial results for Q3FY26, with net profit surging 38% year-on-year to ₹585 crore compared to ₹425 crore in the corresponding period of FY25. The state-owned NBFC also recorded strong revenue growth, with revenue from operations increasing 25% annually to ₹2,130 crore during the quarter under review, up from ₹1,698 crore in the December quarter of FY25. The company's earnings per share (EPS) increased to ₹2.09 from ₹1.58 in the previous year. For the nine months ended December 31, 2025, IREDA maintained strong momentum with revenue from operations reaching ₹6,134 crore, representing 27% growth compared to ₹4,838 crore in the corresponding period of the previous year, while profit after tax for the nine-month period stood at ₹1,381 crore, up 15% from ₹1,197 crore.
The state-run lender's core earnings engine remained resilient during the quarter, with Net Interest Income (NII) jumping 34.8% to ₹897.5 crore for the reported quarter, up from ₹665.8 crore in the year-ago period. This robust NII growth, which represents the difference between interest earned and interest expended, demonstrates IREDA's ability to maintain healthy spreads while expanding its lending portfolio. The company's interest spread improved to 2.63% in 9M FY26 from 2.28% in the previous year, while net interest margin expanded to 3.74% from 3.33%, reflecting improved pricing power and cost management. The strong NII performance exceeded market estimates and reflects the company's strategic focus on profitable lending in the renewable energy sector.
IREDA demonstrated exceptional operational efficiency in Q3FY26, with net profit margins expanding significantly from 22% to 27% year-on-year. This 500-basis point expansion in net margins suggests that for every ₹100 earned, IREDA is now retaining ₹27 as pure profit, compared to ₹22 a year ago. The operating profit surged 31% to ₹857 crore from ₹652 crore, while profit before tax increased 33% to ₹717 crore from ₹538 crore in the year-ago period. The company's cost of borrowings declined to 7.07% from 7.68%, contributing to the improved spreads. While absolute expenses rose proportionately to business volume growth, this demonstrates disciplined cost management and economies of scale benefits.
As reported by the company, IREDA demonstrated sequential improvement in asset quality during Q3FY26, reflecting improved collection efficiencies and prudent underwriting. Gross non-performing assets (NPAs) decreased to 3.75% from 3.97% in the previous quarter, representing a 22 basis points improvement quarter-on-quarter. Net NPAs declined to 1.68% from 1.97% in Q2FY26, showing a 29 basis points sequential improvement. The provision coverage ratio improved significantly to 56.08% from 44.52% in the previous year, providing enhanced buffer against potential losses. However, on a year-on-year basis, asset quality metrics were higher compared to Q3FY25, when gross NPAs stood at 2.68% and net NPAs were at 1.50%, reflecting the challenging operating environment in the renewable energy sector.
According to the earnings report, IREDA's loan book expanded significantly by 28% YoY to ₹87,975 crore in Q3FY26, compared to ₹68,960 crore in the year-ago quarter. The company's disbursements for 9M FY26 jumped 44% to ₹24,903 crore from ₹17,236 crore in the corresponding period of FY25, while loan sanctions grew 29% to ₹40,100 crore from ₹31,087 crore. The company's net worth increased by 38% YoY to ₹13,537 crore, up from ₹9,842 crore in the previous year. The debt equity ratio improved to 5.41 from 5.89, indicating better capital efficiency. The loan portfolio demonstrates strong diversification with solar thermal/SPV accounting for 25% of outstanding loans, followed by state utility facilities at 20%, wind power at 12%, and hydro power at 9%.
Multiple reports highlight that IREDA continues to strengthen its position as India's largest pure-play green financing NBFC, offering a comprehensive suite of financial products for the renewable energy sector. The company maintains the highest domestic credit rating of 'AAA/Stable' and holds an international rating of 'BBB' from S&P Global Ratings, reflecting its strong creditworthiness and market position. As of January 11, 2026, IREDA has a total market capitalization of ₹38,514.56 crore according to NSE data. The company successfully raised ₹32,397 crore in borrowings during Q3 FY26, including JPY 26 billion ECB facility from SBI Tokyo, with total outstanding borrowings reaching ₹73,192 crore.
