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.

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.

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.

Indian Renewable Energy Development Agency ( IREDA ) shares witnessed strong momentum on Monday, January 12, jumping up to 4.13% following the announcement of impressive third quarter results. The state-owned renewable energy financing company's stock performance stood out despite prevailing weakness in the broader Indian stock market.

Strong Stock Performance Amid Market Weakness

IREDA shares rose as much as 4.13% to reach the day's high of ₹142.30 per share during intraday trading. As of 9:55 am, the stock was trading at ₹139.80, representing a gain of 2.3% from the previous close. This positive movement came against the backdrop of overall market weakness, highlighting investor confidence in the company's financial performance.

Impressive Q3 Financial Results

The state-owned company delivered robust financial results for the third quarter, demonstrating strong operational performance in the renewable energy financing sector.

The company posted a sharp 37.5% year-on-year growth in net profit, reaching ₹585.00 crore compared to ₹425.00 crore in the same quarter of the previous year. This significant improvement in profitability was attributed to strong revenue performance, reflecting the company's effective execution of its renewable energy financing mandate.

Market Response and Trading Activity

The positive market response to IREDA's quarterly results demonstrates investor appreciation for the company's financial trajectory. The stock's ability to gain ground despite broader market challenges indicates strong underlying fundamentals and investor confidence in the renewable energy financing sector.

The trading activity reflected sustained interest from market participants, with the stock maintaining gains throughout the morning session. This performance positions IREDA favorably among public sector undertaking stocks in the current market environment.