IREDA share price jumps 3.7% after Q2 net profit surges 42% YoY; assets cross Rs 87,000 crore

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) rose as much as 3.7 percent on Tuesday to Rs 155.59 after the PSU energy financier reported a strong 42 percent year-on-year rise in standalone net profit for the September quarter of FY26. The stock has fallen about 31 percent over the past year, trading between Rs 137.01 and Rs 234.29, and commands a price-to-earnings ratio of 26.38.

Q2 performance

IREDA’s net profit climbed to Rs 549 crore in Q2 FY26 from Rs 387.75 crore in the same quarter last year. Total income grew 26 percent year-on-year to Rs 2,057.45 crore, driven mainly by higher interest income and improved asset growth. Profit before tax rose sharply to Rs 696 crore from Rs 460 crore a year ago.

For the first half of FY26, the company posted a net profit of Rs 795.68 crore, up from Rs 771.42 crore in the year-ago period, while total income rose to Rs 4,016.98 crore from Rs 3,141.08 crore.

Balance sheet and asset quality

As of September 30, 2025, IREDA’s total assets stood at Rs 87,793.76 crore, up 28 percent from Rs 68,748 crore a year ago. Gross non-performing assets (GNPA) ratio increased to 1.37 percent from 1.19 percent, while net NPA rose to 0.91 percent from 0.64 percent a year earlier.

The company’s capital adequacy ratio (CRAR) stood at 16.10 percent after applying 100 percent risk weight to commissioned renewable energy project loans, compared to a restated 15.84 percent in the prior-year period. Cumulative impairment allowance, including standard and non-fund-based facilities, stood at Rs 2,348.90 crore as of September 30, up from Rs 1,687.58 crore a year earlier.

Fundraising and debt profile

During the quarter, IREDA raised Rs 453 crore through a private placement of perpetual taxable unsecured bonds (Series POI-II). Total borrowings stood at Rs 69,939 crore, including Rs 28,942 crore in debt securities and Rs 37,741 crore in loans, with no defaults reported. The company maintained a security cover of 2.61 times for its non-convertible debentures as of September 2025.

Earnings per share and net worth

Earnings per share for Q2 FY26 stood at Rs 1.97, up from Rs 1.44 a year ago. Net worth rose to Rs 12,920 crore from Rs 9,336 crore in the previous year, while the debt-to-equity ratio improved slightly to 5.41 from 5.85.

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