New Delhi: Indian Renewable Energy Development Agency Ltd. (IREDA), the state-owned green finance major under the Ministry of New and Renewable Energy (MNRE), has reported a strong financial performance for the nine months ended December 31, 2025 (9M FY25). The company posted a consolidated net profit of ₹1,381.36 crore, registering a healthy year-on-year growth of 15.4% compared to ₹1,196.81 crore in the same period last year.
Robust Growth in Income and Loan Book
IREDA’s total income for the nine-month period rose sharply to ₹6,157.61 crore from ₹4,840.08 crore a year ago. The growth was largely driven by a significant increase in interest income from loans, which climbed 28.1% year-on-year to ₹5,938.14 crore (net of rebates).
The company’s loan book continued its strong expansion, reaching ₹85,989.07 crore as of December 31, 2025, compared with ₹68,045.82 crore as of December 31, 2024. The rise reflects sustained demand for financing renewable energy projects, including solar, wind, hydro, bio-energy, and emerging green technologies across India.
Read also: IREDA Secures ‘Excellent’ MoU Rating from MNRE for Fifth Straight Year with 96.42 Score
Auditors Draw Attention to Loan Classification
While issuing an unmodified opinion on the financial statements, IREDA’s joint auditors—Shiv & Associates and Rao & Emmar Chartered Accountants—highlighted certain matters under an “Emphasis of Matter” paragraph.
The auditors pointed out that loans amounting to ₹400.24 crore, which would ordinarily be classified as Stage III (Non-Performing Assets) under prudential norms, continue to be shown as Stage II (standard) assets. This treatment is based on interim orders passed by various High Courts restraining IREDA from initiating coercive recovery action against the borrowers.
The audit report clarified that interest income on these accounts has been recognized only on a collection basis and that appropriate impairment provisions have been made, thereby limiting the immediate impact on profitability.
CRAR Restated After Change in Risk Weights
The auditors also highlighted a change in the computation of the Capital to Risk-Weighted Assets Ratio (CRAR). Following a revision in risk-weight norms, IREDA applied a higher 100% risk weight—up from 50%—to its commissioned renewable energy project assets.
As a result, the CRAR for the period ended December 31, 2024, has been restated downward from 19.63% to 15.52%. Despite this adjustment, IREDA’s capital adequacy remains comfortable, with the CRAR standing at 19.54% as of December 31, 2025.
Capital Raise Strengthens Balance Sheet
During the reporting period, IREDA further bolstered its capital position by raising ₹2,005.90 crore through a Qualified Institutional Placement (QIP) in June 2025. Following the issue, the Government of India’s shareholding in the company stands at 71.76%, reaffirming continued sovereign backing.
Subsidiary Performance and Global Ambitions
The consolidated financial results also include the performance of IREDA Global Green Energy Finance IFSC Ltd., the company’s wholly owned subsidiary based in GIFT City. The subsidiary received its final registration from the International Financial Services Centres Authority (IFSCA) in February 2025 and is expected to play a key role in facilitating cross-border green financing.
Management Commentary
Commenting on the results, the Board of Directors led by Chairman & Managing Director Mr. Pradip Kumar Das and Director (Finance) Dr. B. K. Mohanty reiterated IREDA’s commitment to its vision of “ENERGY FOR EVER.” The management emphasized the company’s strategic role in supporting India’s renewable energy targets and accelerating the nation’s clean energy transition.
Analyst View
Market analysts have largely welcomed the results, citing strong growth in income and loan assets. The audit observations are viewed as procedural in nature, linked to ongoing legal processes rather than structural weaknesses. Analysts also see IREDA’s ability to maintain a strong capital adequacy ratio despite stricter risk-weight norms as a positive indicator of balance sheet resilience.
About IREDA
Indian Renewable Energy Development Agency Ltd. is a Navratna public sector enterprise under the Ministry of New and Renewable Energy. Established in 1987, IREDA is dedicated to promoting, developing, and extending financial assistance for renewable energy and energy efficiency projects, playing a pivotal role in India’s transition towards a sustainable and low-carbon energy future.
