Indian Renewable Energy Development Agency Limited (IREDA), India's largest pure-play green financing entity, has delivered a stellar performance in the first half of fiscal year 2026, showcasing significant growth across key financial metrics.

Impressive Loan Book Expansion

IREDA's gross loan portfolio reached ₹84,477.00 crores as of September 30, 2025, marking a substantial 31% year-on-year growth. This expansion underscores the company's pivotal role in financing India's renewable energy sector.

Strong Financial Performance

The company reported a profit after tax of ₹796.00 crores for H1 FY26, representing a 3% increase compared to the same period last year. This growth in profitability is particularly noteworthy given the challenging economic environment.

Key Financial Highlights

IREDA's net interest margin improved to 1.90% in H1 FY26 from 1.68% in the prior period, indicating enhanced efficiency in managing its interest-earning assets. The company's operating profit saw a significant jump of 52% year-on-year, reaching ₹1,454.00 crores.

Robust Asset Quality and Capital Position

IREDA maintained strong asset quality with 84% of its loan portfolio secured. The net non-performing assets (NPA) stood at 1.97%, reflecting the company's effective risk management practices. The capital adequacy ratio remained robust at 20.10%, well above the minimum regulatory requirements, ensuring a strong foundation for future growth.

Diversified Loan Portfolio

The company's loan book is well-diversified across various renewable energy sectors:

• Solar power projects: 23.6% of the gross loan portfolio
• Wind power: 12.4%
• Hydro power: 9.7%

This diversification helps mitigate sector-specific risks.

Funding and Credit Rating

IREDA's total borrowings stood at ₹69,940.00 crores with a cost of funds at 3.65%. The company maintains a strong credit profile with AAA/Stable domestic credit ratings from multiple agencies including ICRA, CARE, India Ratings, Brickwork, and Acuite. This high credit rating enables IREDA to access cost-effective funding, supporting its growth objectives.

Future Outlook

IREDA's loan book spans across solar, wind, hybrid, hydro power, and emerging technologies like green hydrogen. The company has already supported installations of 27.5 GW renewable energy capacity and sees a ₹31.6 lakh crore financing potential across renewable energy sectors till FY30.

IREDA's strong performance in H1 FY26 reflects its crucial role in India's transition towards clean energy. As the country aims to achieve ambitious renewable energy targets, IREDA's continued growth and robust financial health position it as a key enabler in this green energy revolution.

IREDA (Indian Renewable Energy Development Agency Ltd.), a key player in India's green financing sector, has received a significant boost to its credit profile. S&P Global Ratings has upgraded IREDA's long-term issuer credit rating to 'BBB' from 'BBB-', with a stable outlook. This upgrade aligns IREDA's international credit rating with India's sovereign credit rating, underscoring the company's strategic importance in the nation's renewable energy mission.

Key Highlights of the Upgrade

Factors Driving the Upgrade

S&P Global Ratings cited several key factors contributing to IREDA's rating upgrade:

1. Robust asset quality
2. Sound capitalization
3. Strong liquidity profile

Implications of the Rating Upgrade

The enhanced credit rating is expected to have several positive implications for IREDA:

1. Strengthened Funding Capabilities: The upgrade is likely to improve IREDA's access to capital markets.
2. Reduced Cost of Capital: Better credit rating typically translates to lower borrowing costs.
3. Enhanced Investor Confidence: The upgrade may boost investor confidence in both equity and debt capital markets.

Management's Perspective

Pradip Kumar Das, Chairman & Managing Director of IREDA, expressed satisfaction with the upgrade, stating, "We are delighted with this upgrade by S&P Global Ratings, which not only validates IREDA's financial strength but also highlights our critical role in India's renewable energy transition. This alignment with the sovereign rating will enable us to access capital more competitively and deepen investor confidence in our long-term strategy."

Conclusion

This credit rating upgrade marks a significant milestone for IREDA, reinforcing its position as India's premier green financing institution. As the company continues to play a crucial role in funding renewable energy projects, this improved credit profile is likely to enhance its capacity to support India's sustainable energy goals more effectively.

The upgrade also reflects positively on the overall health of India's renewable energy sector, signaling growing confidence in the country's green energy transition. As IREDA leverages this improved rating to access more competitive capital, it could potentially catalyze further growth and innovation in India's renewable energy landscape.