IREDA Q2 FY27: Loan Disbursements Rise 31% as Asset Quality Improves

New Delhi | 28 October 2026

The Indian Renewable Energy Development Agency Limited (IREDA) has reported strong business momentum for the second quarter of FY2026-27, with loan disbursements increasing 31% year-on-year to ₹10,579 crore from ₹8,062 crore in Q2 FY26.

The renewable-energy financing PSU reported standalone profit after tax of ₹554 crore for the quarter ended September 30, 2026, compared with ₹549 crore in the corresponding quarter of the previous year. Revenue from operations increased 14% to approximately ₹2,345 crore.

Loan Book Crosses ₹97,000 Crore

IREDA’s loan book expanded 15% year-on-year to ₹97,411 crore, compared with ₹84,477 crore in Q2 FY26. The company’s net worth also increased 11% to ₹14,337 crore, compared with ₹12,920 crore a year earlier.

The growth reflects continued demand for financing across India’s renewable-energy ecosystem, including solar, wind, hydro, manufacturing and other emerging clean-energy segments.

Major Improvement in Asset Quality

One of the most significant highlights of the quarter was the improvement in IREDA’s asset quality.

Net NPAs declined to 1.08% from 1.97% in the corresponding period, representing a substantial improvement in the quality of the company’s loan portfolio. IREDA’s management attributed the improvement to stronger risk management and monitoring.

The development is particularly important as IREDA continues to expand its lending activities and support increasingly large renewable-energy projects across India.

Expanding India’s Green Financing Capacity

IREDA is a Navratna Government of India enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). Its core mandate is to provide financial assistance for renewable-energy and energy-efficiency projects.

As of March 31, 2026, IREDA’s loan portfolio stood at ₹93,069 crore, with solar, state utility loans, wind, manufacturing and hydro among the major exposure areas. The organisation is also financing emerging areas such as energy storage, green hydrogen, compressed biogas and waste-to-energy.

Digital Monitoring and Governance

IREDA has also been strengthening its operational framework through initiatives such as PROFIN, its digital project-monitoring platform, while continuing to focus on asset quality, governance and responsible growth.

The company commenced Vigilance Awareness Week 2026 on October 26, with CMD Dr. Bijay Kumar Mohanty administering the integrity pledge to employees.

The Worldonomics Times Insight

IREDA’s Q2 performance presents a combination of business growth and improving portfolio quality.

The 31% rise in loan disbursements demonstrates continued financing demand from India’s renewable-energy sector, while the reduction in net NPAs to 1.08% indicates better asset-quality management.

With India’s renewable-energy capacity continuing to expand, IREDA is positioned to play an increasingly important role as a specialised green-finance institution supporting the country’s transition towards a cleaner and more energy-secure economy.

Key Numbers — Q2 FY27