State-run IREDA reported a 36.8% rise in net profit for the June quarter, supported by a 19% expansion in its loan book to nearly ₹95,000 crore. The lender saw net interest income climb by over 24%, reflecting strong demand for renewable energy financing across India.
The Indian Renewable Energy Development Agency (IREDA) has reported a strong start to the new financial year, with its net profit climbing 36.8% to ₹337.5 crore for the quarter ended June 30, 2026. This compares to a profit of ₹246.7 crore in the same period a year ago. The company's performance was primarily driven by steady growth in its lending business, which serves as a key financial backbone for the nation's green energy transition.
Loan Book Growth and Portfolio Mix
IREDA’s core lending operations showed sustained momentum, with its outstanding loan book reaching ₹94,936 crore by the end of June. This is a significant increase from the ₹79,941 crore recorded in the corresponding period last year. The company’s net interest income, which measures the difference between interest earned from loans and interest paid on borrowings, rose by 24.1% to ₹856.8 crore. Solar energy projects continue to be the largest segment in the company's portfolio, accounting for 26% of all outstanding loans. Other major contributors include state utilities, wind energy projects, and green energy manufacturing, each playing a vital role in the lender's diversified asset mix.
Asset Quality and Capital Position
In terms of asset quality, IREDA reported a Gross Non-Performing Assets (GNPA) ratio of 3.76%, up slightly from 3.49% at the end of March 2026. Despite this marginal rise, the company's Net Non-Performing Assets (Net NPA) ratio improved to 1.23%, down from 1.29% in the previous quarter. Management noted that this improvement in net asset quality is the result of focused monitoring and risk management processes. Furthermore, the company maintained a healthy capital adequacy ratio of 20.30%, which provides it with the necessary financial buffer to continue expanding its loan portfolio.
Operational Updates
During the June quarter, IREDA disbursed ₹6,556 crore in new loans, while fresh loan sanctions amounted to ₹3,380 crore. To fund its ongoing growth and lending requirements, the agency successfully raised ₹4,991 crore through borrowings during the same period. The company's annualised net interest margin also saw an improvement, rising to 3.75% compared to 3.60% in the previous year.
Investors looking ahead will likely focus on the company's ability to maintain these margins as it continues to fund large-scale renewable projects. Key monitorables include the trend in new loan sanctions versus actual disbursements, as well as the company’s ability to manage its GNPA ratio in an evolving interest rate environment. Shares of IREDA ended the day on the National Stock Exchange at ₹122.98, reflecting a 2.83% gain.