IREDA Q3FY26 Results: Profit Jumps 38% YoY, Stock Rises 2% on Strong Earnings

Market Reaction: IREDA Shares Gain Post Results

Indian Renewable Energy Development Agency (IREDA) reported a strong set of earnings for Q3FY26, leading to a nearly 2% rise in its stock price following the announcement. The performance reflects steady business momentum, improving profitability, and continued growth in its renewable energy financing portfolio, supported by favourable policy tailwinds.

IREDA Q3FY26 Financial Performance Highlights

Revenue Growth Remains Robust

IREDA’s revenue from operations rose to ₹2,130 crore in Q3FY26, registering:

• 3.6% quarter-on-quarter (QoQ) growth
• 25.4% year-on-year (YoY) growth

The strong revenue performance was driven by sustained loan disbursements and consistent expansion in financing across renewable energy projects, including solar, wind, and hybrid segments.

Profitability Strengthens on Operating Leverage

The company reported profit after tax (PAT) of ₹585 crore, marking:

• 6.6% QoQ growth
• 37.7% YoY growth

PAT margins improved to 27.5% in Q3FY26, up from 26.7% in Q2FY26 and 25.0% in Q3FY25. The margin expansion highlights better cost efficiencies, improving asset yields, and the benefits of operating leverage as the loan book scales up.

Loan Book Expansion Signals Strong Demand

IREDA’s outstanding loan book increased to ₹87,975 crore, reflecting:

• 4.1% sequential growth
• 27.6% YoY growth

The continued expansion underlines healthy demand for renewable energy financing, supported by accelerated project execution, government policy support, and rising investments in clean energy infrastructure.

Asset Quality Shows Improvement

Asset quality trends improved during the quarter:

• Gross NPA declined to 3.75% from 3.97% in Q2FY26
• Net NPA improved to 1.68% from 1.97% in the previous quarter

The moderation in NPAs signals better recoveries and controlled credit costs, strengthening the balance sheet and reducing downside risks.

Key Takeaways from IREDA Q3FY26 Results

• Strong revenue and profit growth driven by renewable energy financing momentum
• Margin expansion reflects better cost control and improving asset yields
• Loan book growth remains robust amid favourable policy environment
• Asset quality improvement boosts confidence in earnings sustainability

Outlook: Medium-Term Growth Story Intact

Overall, IREDA’s Q3FY26 performance presents a balanced mix of growth, profitability, and improving asset quality. With continued policy support for renewable energy, increasing project pipeline visibility, and strengthening financial metrics, the company remains well-positioned to deliver stable earnings growth over the medium term.

The market’s positive reaction post results underscores investor confidence in IREDA’s business model and long-term growth prospects.