IREDA's Q3 FY26 Performance: Powering India's Green Energy Transition

Indian Renewable Energy Development Agency (IREDA) has delivered a robust financial performance for the quarter and nine months ended December 31, 2025, solidifying its position as a pivotal financier in India's rapidly expanding green energy sector. The company reported a significant 25% year-on-year increase in standalone revenue from operations, reaching ₹2130 crore for Q3 FY26. This strong top-line growth translated into an impressive 38% surge in Profit After Tax (PAT) to ₹585 crore for the quarter, underscoring IREDA's operational efficiency and strategic focus.

The nine-month period also reflected this upward trajectory, with revenue from operations growing by 27% to ₹6134 crore and PAT rising by 15% to ₹1381 crore. This consistent growth is fueled by IREDA's comprehensive suite of financial products and services, catering to both traditional and emerging renewable energy technologies. The company's loan book expanded by 28% year-on-year, reaching ₹87975 crore as of December 31, 2025, demonstrating its increasing footprint in the renewable energy financing landscape. This expansion is critical as India aims for an ambitious target of 500 GW of non-fossil fuel-based energy by 2030.

Strategic Expansion and Capital Strengthening

IREDA's strategic initiatives extend beyond domestic growth, with a notable foray into international green financing. Its wholly-owned subsidiary, IREDA Global Green Energy Finance IFSC Ltd. (IGGEFIL), sanctioned its inaugural international loan of USD 22.5 million to Swarna Solar Limited (SSL) for a 100 MW solar power plant in Zambia. This landmark transaction positions IREDA as a global catalyst for clean energy financing, aligning with the Government of India's vision of global renewable energy leadership and expanding India's green financing footprint into international markets.

To support its ambitious growth plans and maintain a robust capital base, IREDA has been proactive in capital raising. In 2026, the company successfully raised ₹2,005.90 crore and an additional ₹453 crore through a Qualified Institutional Placement (QIP). Furthermore, it received approval from the Ministry of Finance for issuing 54EC Bonds and raised JPY 26 Billion ECB Facility from SBI Tokyo. In 2025, IREDA launched its first-ever issue of Perpetual Bonds for ₹1,247 crores and raised ₹910.37 crore through Privately Placed Tier-II Bonds. These diversified funding sources underscore IREDA's ability to attract capital and its commitment to disciplined financial management.

Asset Quality and Operational Performance

While IREDA's growth trajectory remains strong, the company's asset quality metrics warrant attention. The Gross Non-Performing Asset (NPA) percentage increased to 3.75% as of December 31, 2025, from 2.68% a year prior. Similarly, the Net NPA percentage rose to 1.68% from 1.50%. This indicates a slight deterioration in the loan book quality, which the management will need to monitor closely. Additionally, impairment on financial instruments saw a substantial increase of 421% for the nine-month period, from ₹108 crore to ₹562 crore, impacting overall profitability.

Despite these challenges, IREDA maintains strong credit ratings, with 'AAA/Stable' domestic ratings and an upgraded S&P Global rating to 'BBB' Long-Term and 'A-2' Short-Term. This strong credit profile enables cost-effective long-term borrowing, crucial for financing large-scale renewable energy projects. The company's operational performance is further validated by its consistent 'Excellent' rating from the Ministry of New and Renewable Energy (MNRE) for the past five years, reflecting its effective implementation of government schemes and strategic initiatives.

Outlook and Future Direction

IREDA's Q3 FY26 performance underscores its critical role in India's green energy transition. The company's diversified loan portfolio, spanning various renewable energy technologies and geographies across India, provides a stable foundation for future growth. The strategic move into international markets, coupled with robust capital-raising efforts, positions IREDA for continued expansion. While asset quality trends require vigilant management, the overall outlook remains positive, driven by strong government support, a favorable policy environment for renewable energy, and IREDA's proven track record as a leading green financier. The company's commitment to high standards of corporate governance and its strong ESG journey further enhance its long-term sustainability and appeal to investors.