IREDA Q1 Results: Net profit rises 37% YoY to ₹339 crore; asset quality stays stable
IREDA's Q1 FY27 showed mixed results with net profit at ₹339 crore, up 37.1% YoY but down 31.3% sequentially. Revenue rose 15.5% YoY to ₹2,249 crore, offset by increased finance costs and provisions, impacting profitability despite stable asset quality.
Indian Renewable Energy Development Agency (IREDA) reported a mixed performance for the June quarter (Q1 FY27), with profitability declining sequentially due to higher finance costs and increased provisions, although earnings remained higher than a year ago.
The state-owned renewable energy financier reported a net profit of ₹339 crore for the quarter ended June 2026, registering a 37.1% year-on-year (YoY) increase from ₹247 crore in the corresponding quarter last year.
However, on a sequential basis, net profit declined 31.3% from ₹493 crore reported in the March quarter (Q4 FY26).
On the top line, revenue from operations rose to ₹2,249 crore, up 15.5% YoY from ₹1,948 crore in the year-ago period.
Compared with the March quarter, revenue also inched marginally by 0.7% from ₹2,173 crore, supported by continued growth in interest income, which increased to ₹2,198 crore from ₹1,909 crore a year ago and ₹2,138 crore in the previous quarter, reflecting sustained expansion in the company's loan book.
However, the improvement in income was offset by a sharp rise in funding costs and provisions. Total expenses increased to ₹1,837 crore, compared with ₹1,655 crore in the year-ago quarter and ₹1,562 crore in Q4 FY26.
The increase was largely driven by finance costs, which climbed to ₹1,341 crore, up from ₹1,218 crore a year earlier and ₹1,241 crore in the preceding quarter, indicating a higher cost of borrowings as the company's lending operations expanded.
The quarter also saw a rise in impairment on financial instruments, which increased to ₹418 crore from ₹363 crore in the corresponding quarter last year and ₹215 crore in the March quarter. The higher provisioning weighed on profitability despite healthy growth in operating income.
Asset quality remains stable; loan book grows 19% YoY
On the asset quality front, IREDA's performance remained stable during the quarter. Gross NPAs stood at 3.76% as of June 30, 2026, compared with 4.13% a year earlier, although they edged up from 3.49% at the end of March 2026.
Net NPA improved to 1.23% from 2.06% in the year-ago period and also declined marginally from 1.29% in the previous quarter, reflecting healthy recoveries and a stable credit profile. In absolute terms, gross NPAs stood at ₹3,568 crore, while net NPAs declined to ₹1,134 crore from ₹1,615 crore a year ago.
Meanwhile, the company's outstanding loan book continued to expand, rising 19% year-on-year to ₹94,936 crore as of June 30, 2026, compared with ₹79,941 crore a year earlier.
On a sequential basis, the loan book grew 2% from ₹93,069 crore at the end of March 2026, reflecting sustained growth in renewable energy financing.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
About the Author
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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