IREDA Q1FY26 result: Net profit drops 36%, revenue grows to ₹1,948 crore; check details

The Maharatna PSUs total revenue from operations, however, saw a 29% growth in Q1 FY26 at ₹1,947.6 crore in contrast to ₹1,510.27 crore in the same quarter the previous year.

IREDA’s net interest income (NII) increased 36.02% during the reporting quarter to ₹691 crore as against ₹508 crore in Q1 FY25.

The company’s loan book rose 26% to ₹79,941 crore year-on-year (YoY) as compared to ₹63,207 crore in the same quarter last year.

Sequentially, the renewable energy’s gross non-performing assets (NPA) stood at 4.13% as against 2.45%. The net NPA for Q1FY26 was at 2.06% versus 1.35% quarter-on-quarter (QoQ).

Ahead of its earnings announcement, IREDA on Thursday said that the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has permitted it to issue capital gain exemption bonds under Section 54EC of the Income Tax Act, 1961 w.e.f. the date of notification, i.e., July 9, 2025.

54EC bonds, or capital gains bonds, are specifically meant for investors earning long-term capital gains who would like tax exemption on these gains.

Tax deduction is available under section 54EC of the Income Tax Act.

54EC bonds do not allow any tax exemption on short-term capital gains tax. The eligible bonds under Section 54EC are REC (Rural Electrification Corporation Ltd), PFC (Power Finance Corporation Ltd), and IRFC (Indian Railways Finance), as per available reports.

IREDA logged a 29% growth in loan sanctions to ₹11,740 crore in the June quarter (Q1 FY26) as compared to ₹9,136 crore a year ago.

The state-owned agency started the financial year on a high note, registering a rise in its key financial indicators in the June quarter, based on provisional data, a statement said.

Loan disbursements rose 31% to ₹6,981 crore from ₹5,326 crore in Q1 FY25.

The company's outstanding loan book was at ₹79,960 crore as of June 30, 2025, reflecting a 27% increase over ₹63,207 crore in the year-ago period.

IREDA is a non-banking financial institution under the Ministry of New and Renewable Energy.

On Thursday, shares of IREDA settled at ₹169.88 apiece on the National Stock Exchange, gaining 2.39%.