IREDA Q2 net profit rises nearly 42% to ₹549 crore, NII up 49.5%; shares rise

The public sector undertaking (PSU) non-banking financial company (NBFC) reported a 41.67% year-on-year (YoY) increase in its consolidated profit to ₹549.33 crore for the July-September quarter FY26. Revenue for the quarter increased 26.2% to ₹2,057.3 crore from ₹1,630.4 crore a year ago.

The company reported a rise of 49.5% in Net interest income (NII) YoY to ₹817 crore, compared with ₹547 crore in the same period last year. Further, the company's operating profit also recorded a sharp increase of 55% to ₹766 crore, against ₹494 crore a year ago.

In terms of asset quality, the company reported an improvement on a quarterly basis. Gross non-performing assets (Gross NPA) stood at 3.97%, compared with 4.13% in the previous quarter. On the other hand, net non-performing assets (Net NPA) stood at 1.97%, down from 2.06% in the previous quarter.

For the half year ended September 30, 2025, IREDA reported a total income of ₹4,017.69 crore and a profit after tax of ₹796.21 crore. During the same period last year, the company had recorded an income of ₹3,141.08 crore and a profit of ₹771.42 crore.

Total expenses for the second quarter stood at ₹1,361.46 crore, which included finance costs of ₹1,212.97 crore, employee benefits expenses of ₹25.95 crore, and impairment on financial instruments worth ₹69.92 crore. Other expenses during the quarter were ₹20.32 crore.

Shares of IREDA gained as much as 3.85% to touch an intraday high of ₹155.86 apiece on the National Stock Exchange (NSE). The stock is trading 3.22% up at ₹154.80 per equity share at 12:08 PM.

Business updates

IREDA said loans sanctioned until September 30, 2025, rose 86% year-on-year to ₹33,148 crore. Disbursements increased 54% year-on-year to ₹15,043 crore, while the loan book outstanding as of September 30 stood at ₹84,445 crore, up 31% from the previous year.

As of September 30, 2025, the company’s gross yield on loan assets was 9.87% compared with 9.92% in the year-ago period. The annualised net interest margin (NIM) for the quarter stood at 3.72%, up from 3.34% in Q2FY25.

IREDA’s debt-equity ratio improved to 5.41 from 5.85 a year earlier. Earnings per share (EPS) for Q2FY26 stood at ₹2.88, compared with ₹2.87 in the corresponding quarter last year.

IREDA share price

In the last five trading sessions, IREDA shares have edged up 1.76% and gained 1.40% over the past month. Over the past six months, the stock has declined 7.62%, and on a year-to-date basis, it remains lower by 30.39%.

The company’s shares hit a 52-week high of ₹234.29 on January 3, 2025, and a 52-week low of ₹137.01 on March 17, 2025. As of October 14, IREDA’s market capitalisation stood at ₹43,565.56 crore.