Synopsis: Navratna PSU IREDA was up 4% as Q3 FY26 saw a 25% jump in revenue at Rs 2,130 crore with a 38% increase in PAT at Rs 585 crore, led by robust loans in the renewables sector. Meanwhile, Net NPAs are up 41% YoY at Rs 1,448
The shares of this Navaratna company, which was established for the promotion, development and commercialisation of new and renewable sources of energy and provides financial assistance to energy efficiency and conservation projects. Is in the news following its Q3 results, which highlighted growth in several of its metrics.
With the market cap of Rs 38,823 crore, the shares of Indian Renewable Energy Development Agency Ltd gained about 4%, reaching a high of Rs 142.30, compared to its previous day closing price of Rs 136.65. The shares are trading at a PE of 20.7, whereas their industry PE is at 20.4. The shares have given a return of 122% since their listing in December 2023.
About the Q3 result highlights
IREDA has reported a strong operating performance in Q3 FY26, with total revenue from operations rising to Rs 2,130 crore from Rs 1,698 crore, which is a 25% growth YoY, and in QoQ terms has grown from Rs 2,057 crore, which is a QoQ growth of about 3.5%. It underlines sustained credit demand across solar, wind, and other clean energy segments, reinforcing the IREDA position as a key financing backbone for India’s energy transition.
Profitability, too, improved significantly despite higher costs. Profit after tax increased to Rs 585 crore from Rs 425 crore, a YoY growth of 38%. The QoQ growth is about 7% from Rs 549 crore.
However, the Net NPA stands at Rs 1,448 crore (1.68%), which has increased from Rs 1,024 crore (1.5%), which is a 41% increase YoY, signalling a negative sign in the company’s recovery segment.
Sector-Wise Loan Split
The sector-wise loan book exposure as of 31 December 2025 indicates a diversified portfolio of loans focusing on the renewable energy sector, with solar thermal/SPV contributing the maximum share of 25% not only because of IREDA’s significant presence in the largest sector of Indian renewables but also because of the growing demand for solar thermal systems in the industrial and commercial sectors, including unique applications such as solar drying of grains and solar-assisted cooking in the food processing industry.
Loans to state utilities contribute a share of 20%, which is a stabiliser in light of PSU-related counterparties, while wind energy contributes a share of 12% and hydro energy a share of 9%, thus providing sectorial diversification to IREDA’s loans. Sectoral concentration is visible in ethanol energy, which is 8%.
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