IREDA Q1 Results: Lender Stumbles With Profit Drop, NPA Expansion

The key lender for renewable energy in India suffered despite strong growth in the overall loan book. The hit was mainly on account of its exposure to troubled EPC firm Gensol, which in turn has been laid low by its exposure to Blusmart.

11 Jul 2025 10:22 IST

Indian Renewable Energy Development Agency Ltd. (IREDA) announced its Audited Standalone and Consolidated Financial Results for Q1 FY 2025-26. The state-run lender reported a 35.7 percent year-on-year drop in net profit to Rs 247 crore, owing to expanding NPAs. While reporting a 49% year-on-year growth in operating profit and a 30% rise in total income from operations, the firm omitted any mention of the year-on-year drop in net profit, focusing instead on operating profit numbers.

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Gross non-performing assets (NPAs) almost doubled to 4.13 percent from 2.45 percent in the March quarter, while net NPAs moved to 2.05 percent from 1.35 percent. The company has an exposure of Rs 470 crore to Gensol, comprising a term loan of Rs 254.9 crore and working capital lines worth Rs 215.7 crore. IREDA has already dragged Gensol to the insolvency court to try and recover its outstandings.

Key Financial Highlights (Standalone) – Q1 FY 2025-26 vs Q1 FY 2024-25:

·Operating Profit: ₹677 crore vs ₹454 crore (↑49%)

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·Total Income from Operations: ₹1,960 crore vs ₹1,511 crore (↑30%)

·Net Worth: ₹12,042 crore vs ₹9,110 crore (↑36%)

·Loan Book: ₹79,941 crore vs ₹63,207 crore (↑26%)

·Loan Sanctions: ₹11,740 crore vs ₹9,136 crore (↑29%)

·Loan Disbursements: ₹6,980 crore vs ₹5,325 crore (↑31%)

Commenting on the performance, Pradip Kumar Das, Chairman & Managing Director, IREDA, said, “Our expanding loan book and net worth reflect our strategic focus and robust operations. IREDA supports India's renewable energy journey with a growing portfolio and strong performance, committed to a sustainable future through innovation and responsible finance.”

The broader strength in disbursements and overall growth will be reassuring to investors, who have cooled off on the high-flying firm since its successful IPO. Barring any further unforeseen issues, IREDA seems set to be back on a growth path with healthy profits by Q3 of FY26, by which time it would have completed full provisioning for most NPAs.

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