IREDA delivered strong financial performance in the third quarter ended December 31, 2025, demonstrating robust growth across key metrics. The renewable energy financing company reported significant improvements in profitability and operational expansion, reflecting the growing momentum in India's clean energy sector.

Financial Performance Highlights

The company's quarterly results showed impressive year-on-year growth across major financial parameters:

For the nine-month period ended December 31, 2025, IREDA maintained its growth trajectory with consistent performance improvements:

Operational Growth Metrics

IREDA's business expansion was evident in its lending operations, with substantial increases in both loan sanctions and disbursements. The company's loan sanctions rose 29% YoY to ₹40,100 crore, compared to ₹31,087 crore in the corresponding period last year. More significantly, loan disbursements surged 44% YoY to ₹24,903 crore, substantially higher than ₹17,236 crore in the nine-month period ended December 2024.

Loan Portfolio Diversification

As of December 31, 2025, IREDA's outstanding loan book demonstrated strategic diversification across various clean energy segments:

Borrowing Structure and Capital Management

IREDA reported raising ₹32,397 crore in total borrowings during Q3 FY26. As of December 31, 2025, the company's total borrowings stood at ₹73,172 crore, maintaining a strategic mix between domestic and foreign sources:

The borrowing structure indicates IREDA's continued preference for domestic funding sources, with the share of domestic borrowings remaining stable at 87% compared to March 2025 levels. This strategic approach provides stability in funding costs while supporting the company's aggressive expansion in renewable energy financing.

IREDA has reported sequential improvement in its asset quality metrics for the third quarter, demonstrating enhanced portfolio management capabilities. The renewable energy financing institution showed positive trends across key non-performing asset indicators during the period.

Asset Quality Performance

The company's asset quality metrics showed notable improvement on a quarter-on-quarter basis:

Sequential Improvement Trends

The gross non-performing assets ratio declined to 3.75% in Q3 from 3.97% in the previous quarter, representing a sequential improvement of 22 basis points. This reduction indicates better recovery mechanisms and improved asset quality management by the renewable energy development agency.

Net non-performing assets showed even more significant improvement, declining to 1.68% from 1.97% on a quarter-on-quarter basis. The 29 basis points improvement in NNPA suggests effective provisioning strategies and better collection efficiency during the quarter.

Portfolio Quality Enhancement

The sequential decline in both GNPA and NNPA ratios reflects IREDA's strengthened approach to asset quality management. The improvement in these key metrics indicates reduced stress in the loan portfolio and enhanced recovery processes implemented by the institution.

These asset quality improvements demonstrate the company's focus on maintaining healthy lending standards while supporting India's renewable energy sector financing requirements.