IREDA Share Price: Q2 Earnings Boost Market Sentiment

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) gained momentum today, climbing 3.7% to Rs 155.59 after the company released its Q2 FY26 financial results. The rise reflects strong performance in the September quarter, signaling resilience despite a challenging market over the past year.

Market Performance

• Share price range (past year): Rs 137.01 – Rs 234.29
• Current P/E ratio: 26.38

The stock has experienced a 31% decline over the last 12 months but regained traction following the robust quarterly earnings announcement. Investor interest appears tied to IREDA’s improved profitability and asset growth.

Q2 FY26 Financial Highlights

IREDA reported strong year-on-year growth across key financial metrics:

• Net profit: Rs 549 crore, up 42% from Rs 387.75 crore in Q2 FY25
• Total income: Rs 2,057.45 crore, up 26% YoY
• Profit before tax: Rs 696 crore, up from Rs 460 crore

For the first half of FY26:

• Net profit: Rs 795.68 crore, up from Rs 771.42 crore
• Total income: Rs 4,016.98 crore, up from Rs 3,141.08 crore

Growth was primarily driven by higher interest income and an expanding asset base.

Balance Sheet and Asset Quality

IREDA’s balance sheet shows steady growth and prudent asset management:

• Total assets (as of Sept 30, 2025): Rs 87,793.76 crore, up 28% YoY
• Gross NPA: 1.37% (up from 1.19%)
• Net NPA: 0.91% (up from 0.64%)
• CRAR: 16.10% (up from 15.84%)

The cumulative impairment allowance, including standard and non-fund-based facilities, rose to Rs 2,348.90 crore from Rs 1,687.58 crore, reflecting cautious provisioning as the company expands its loan portfolio.

Fundraising and Debt Profile

During Q2 FY26, IREDA strengthened its capital structure:

• Raised Rs 453 crore through private placement of perpetual taxable unsecured bonds (Series POI-II)
• Total borrowings: Rs 69,939 crore, including Rs 28,942 crore in debt securities and Rs 37,741 crore in loans
• Maintained a security cover of 2.61 times for non-convertible debentures

Notably, the company reported no defaults across its borrowings, reinforcing financial stability.

Earnings Per Share and Net Worth

IREDA’s shareholder metrics reflected healthy growth:

• EPS (Q2 FY26): Rs 1.97, up from Rs 1.44
• Net worth: Rs 12,920 crore, up from Rs 9,336 crore
• Debt-to-equity ratio: Improved slightly to 5.41 from 5.85

The improvements demonstrate a stronger capital base and better leverage management, supporting the company’s continued lending to renewable energy projects.

Summary

IREDA’s Q2 performance paints a picture of a resilient PSU energy financier with rising profitability and expanding assets. With strong earnings growth, robust balance sheet, and a clear focus on renewable energy financing, the company has strengthened its position in the market. The share price uptick of 3.7% mirrors market confidence in IREDA’s financial discipline and strategic growth trajectory.