IREDA Reports Strong Q3 FY26 Performance with 38% PAT Growth and Robust Loan Book Expansion

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.

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 announced robust financial results for the third quarter, demonstrating strong growth momentum across key performance indicators. The renewable energy financing company delivered impressive year-on-year improvements in both profitability and revenue generation.

Financial Performance Highlights

The company's quarterly performance showcased significant growth across major financial metrics:

Metric	Q3 Current Year	Q3 Previous Year	Growth
Net Profit	₹5.80 billion	₹4.25 billion	36.47%
Revenue	₹21.30 billion	₹16.98 billion	25.44%

Profitability Growth

IREDA's net profit performance stood out as a key highlight of the quarter. The company achieved a net profit of ₹5.80 billion, representing a substantial increase of 36.47% compared to ₹4.25 billion recorded in the same quarter of the previous year. This significant improvement in profitability demonstrates the company's effective operational management and strong business fundamentals.

Revenue Expansion

The revenue performance complemented the strong profit growth, with IREDA recording ₹21.30 billion in quarterly revenue. This represents a solid 25.44% year-on-year increase from the ₹16.98 billion achieved in the corresponding quarter of the previous year. The revenue growth indicates the company's expanding business operations and market presence in the renewable energy financing sector.

Performance Analysis

The financial results reflect IREDA's strong positioning in the renewable energy financing market. Both revenue and profit metrics showed double-digit growth rates, with profit growth outpacing revenue growth, indicating improved operational efficiency and margin expansion during the quarter.