IREDA Reports Sequential Improvement in Asset Quality Metrics for Q3

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:

Asset Quality Metric:	Q3	Previous Quarter	Change (bps)
Gross NPA (GNPA):	3.75%	3.97%	-22 bps
Net NPA (NNPA):	1.68%	1.97%	-29 bps

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.24%	-1.97%	+4.12%	-17.94%	-38.84%	-89.07%

IREDA has delivered robust financial performance in the third quarter of FY26, demonstrating strong growth across key metrics while maintaining its position as India's premier renewable energy financing institution. The company's comprehensive investor presentation reveals significant expansion in both profitability and loan portfolio, underlining the growing momentum in India's renewable energy sector.

Strong Financial Performance in Q3 FY26

The company reported impressive growth in profitability during the quarter ended December 31, 2025. Key financial highlights demonstrate the strength of IREDA's business model and execution capabilities.

Financial Metric:	Q3 FY26	Q3 FY25	Growth (%)
Revenue from Operations:	₹2,130 cr	₹1,698 cr	25%
Operating Profit:	₹857 cr	₹652 cr	31%
Profit Before Tax:	₹717 cr	₹538 cr	33%
Profit After Tax:	₹585 cr	₹425 cr	38%

For the nine months ended December 31, 2025, the company maintained strong momentum with revenue from operations reaching ₹6,134 crores, representing 27% growth compared to ₹4,838 crores in the corresponding period of the previous year. Profit after tax for the nine-month period stood at ₹1,381 crores, up 15% from ₹1,197 crores.

Operational Excellence and Loan Portfolio Growth

IREDA's operational performance reflects the robust demand for renewable energy financing in India. The company's outstanding loan book reached ₹87,975 crores as of December 31, 2025, marking a substantial 28% increase from ₹68,960 crores in the previous year.

Operational Metrics:	9M FY26	9M FY25	Growth (%)
Sanctions:	₹40,100 cr	₹31,087 cr	29%
Disbursements:	₹24,903 cr	₹17,236 cr	44%
Outstanding Loan Book:	₹87,975 cr	₹68,960 cr	28%

The loan portfolio demonstrates strong diversification across renewable energy sectors, 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%. The company maintains a balanced mix between public sector (29%) and private sector (71%) lending.

Asset Quality and Financial Ratios

IREDA maintained healthy asset quality metrics despite the significant growth in loan book. Gross NPA stood at 3.75% as of December 31, 2025, while net NPA was contained at 1.68%. The provision coverage ratio improved to 56.08%, up from 44.52% in the previous year.

Key Ratios:	9M FY26	9M FY25	Change
Yield on Loan Assets:	9.70%	9.96%	-26 bps
Cost of Borrowings:	7.07%	7.68%	-61 bps
Interest Spread:	2.63%	2.28%	+35 bps
Net Interest Margin:	3.74%	3.33%	+41 bps
Debt Equity Ratio:	5.41	5.89	Improved

The company's net worth grew significantly to ₹13,537 crores, representing 38% growth from ₹9,842 crores in the previous year, reflecting strong capital adequacy and financial stability.

Strategic Positioning and Market Leadership

As India's largest pure-play green financing NBFC with over 38 years of experience, IREDA continues to play a strategic role in the government's renewable energy initiatives. The company holds Infrastructure Finance Company status from RBI and maintains the highest domestic credit ratings of 'AAA/Stable' across all major rating agencies. S&P Global Ratings upgraded the company's long-term issuer credit rating to 'BBB' from 'BBB-' with stable outlook.

The company successfully raised ₹32,397 crores in borrowings during Q3 FY26, including JPY 26 billion ECB facility from SBI Tokyo. Total outstanding borrowings reached ₹73,192 crores, with domestic borrowings comprising 87% and foreign borrowings 13% of the total portfolio. The diversified funding profile includes bonds (44%) and bank loans (56%), providing cost-effective access to capital markets.