IREDA Reports 38% Jump in Q3 Net Profit to ₹584.90 Crore on Strong Loan Growth

Indian Renewable Energy Development Agency ( ireda ) delivered impressive third-quarter results, with shares trading at ₹138.94, up ₹2.33 or 1.71% from the previous close of ₹136.61 as of 12:38 pm on Monday. The stock opened higher at ₹139.99 and touched an intraday high of ₹142.30, though it dipped to ₹137.46 during the session.

Strong Financial Performance in Q3 FY25

The state-owned renewable energy financier reported robust earnings growth across key metrics during the third quarter.

Financial Metric:	Q3 FY25	Q3 FY24	Growth (%)
Net Profit:	₹584.90 cr	₹425.40 cr	+38.0%
Net Interest Income:	₹897.50 cr	₹665.80 cr	+34.8%
Revenue from Operations:	₹2,130.00 cr	₹1,704.00 cr	+25.0%
Net Interest Margin:	3.74%	3.33%	+41 bps

The company's net profit surged 38% year-on-year to ₹584.90 crore in Q3 FY25, up from ₹425.40 crore in the same quarter last year. Net interest income climbed 34.8% to ₹897.50 crore from ₹665.80 crore, driven by expansion in its loan book and improved interest spreads.

Loan Book Expansion and Asset Quality

IREDA demonstrated strong business growth with its outstanding loan book expanding significantly during the quarter.

Portfolio Metrics:	December 2025	December 2024	Growth (%)
Outstanding Loan Book:	₹87,975.00 cr	₹68,960.00 cr	+28.0%
Net NPA Ratio:	1.68%	1.50%	+18 bps

The company's outstanding loan book grew 28% to ₹87,975.00 crore as of December 31, 2025, compared to ₹68,960.00 crore a year earlier. The company maintained its net NPA ratio at 1.68%, though marginally higher than 1.50% in Q3 FY24.

Nine-Month Operational Highlights

During the nine months ending December 2025, IREDA demonstrated strong operational momentum across its lending activities.

Nine-Month Performance:	FY25 (9M)	FY24 (9M)	Growth (%)
Loan Sanctions:	₹40,100.00 cr	₹31,085.27 cr	+29.0%
Disbursements:	₹24,903.00 cr	₹17,293.75 cr	+44.0%

The company sanctioned ₹40,100.00 crore in loans, up 29% year-on-year, with disbursements rising 44% to ₹24,903.00 crore. IREDA raised ₹32,397.00 crore in borrowings during the quarter, including a JPY 26 billion facility from SBI Tokyo.

Market Performance and Shareholding

Market sentiment remained active with 62.70% of traded volume on the sell side against 37.30% on the buy side. The stock has declined 31.06% over the past year but gained 1.84% in the last month. IREDA's market capitalization stood at ₹39,565.21 crore, with the government holding a 71.76% stake in the renewable energy financier.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.15%	-3.90%	+4.80%	-15.06%	-34.79%	-88.73%

Market reactions to Q3 FY26 results were sharply contrasted on January 12, with IREDA shares surging over 4% following robust financial performance while Tejas Networks plummeted 13% to a 52-week low after posting significant losses.

IREDA Delivers Strong Q3 Performance

IREDA shares rose to ₹142.30 apiece on Monday, snapping a two-session losing streak after the company released impressive third-quarter results. The renewable energy financier reported a standalone net profit of ₹584.91 crores for the October-December quarter of FY26, representing a substantial 37.5% year-on-year increase from ₹425.38 crores in the corresponding period of the previous financial year.

Financial Metric	Q3 FY26	Q3 FY25	Growth (%)
Net Profit	₹584.91 cr	₹425.38 cr	+37.5%
Revenue from Operations	₹2,129.87 cr	₹1,698.45 cr	+25.4%
Outstanding Loan Book	₹87,975 cr	-	+28.0% YoY
Net Worth	₹13,537 cr	-	+38.0% YoY

The company's revenue from operations rose more than 25% year-on-year to ₹2,129.87 crores during the quarter under review. IREDA's outstanding loan book increased 28% year-on-year to ₹87,975 crores, while net worth rose 38% year-on-year to ₹13,537 crores. However, asset quality showed some deterioration, with net non-performing assets margin rising from 1.50% to 1.68%.

Strong Operational Metrics Drive Growth

The company's robust December quarter performance was driven by healthy sanctions and strong disbursements across solar, state utilities, and ethanol segments. Net interest income grew nearly 40% year-on-year, supported by balance sheet expansion, with the company achieving an improved interest spread of 2.63%.

According to ICICI Direct Research, despite temporary stress in Q1, IREDA's Q3 performance confirms normalization in margins, asset quality and earnings. The brokerage noted that the long-term structural growth story for renewable financing remains intact, supported by balance sheet growth, stable margins and sustained asset quality.

Tejas Networks Faces Challenging Quarter

In contrast, Tejas Networks shares dropped around 13% to hit a fresh 52-week low of ₹364.25 apiece following disappointing quarterly results. The Tata Group company reported a consolidated net loss of ₹196.55 crores for Q3 FY26, compared to a net profit of ₹165.67 crores in Q3 FY25. However, the net loss narrowed sequentially from ₹307.13 crores reported in Q2 FY26.

Parameter	Q3 FY26	Q3 FY25	Change
Net Profit/Loss	Loss ₹196.55 cr	Profit ₹165.67 cr	-
Revenue from Operations	₹306.79 cr	-	-88%
Order Book	₹1,329 cr	-	-
Net Debt	₹3,349 cr	-	-

The firm's revenue from operations tumbled more than 88% to ₹306.79 crores in the December-October quarter. Despite the challenging performance, Tejas Networks ended Q3 FY26 with an order book of ₹1,329 crores. The company's CFO Sumit Dhingra noted that net debt decreased to ₹3,349 crores compared to ₹3,738 crores in Q2 FY26, mainly due to lower working capital requirements.

Market Outlook

Analysts remain optimistic about IREDA's prospects, with Khushi Mistry from Bonanza highlighting that the renewable energy financier's outlook remains positive, supported by renewable energy sector momentum and robust loan book expansion. The contrasting performances of these two companies reflect the varied challenges and opportunities across different sectors in the current market environment.