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Informist, Tuesday, Oct. 14, 2025

 

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--IREDA Jul-Sept net profit INR 5.49 bln 
--IREDA Jul-Sept net profit INR 5.49 bln vs INR 3.88 bln year ago 
--IREDA Jul-Sept total income INR 20.57 bln vs INR 16.30 bln year ago 
--IREDA Apr-Sept net profit INR 7.96 bln vs INR 7.71 bln year ago 
--IREDA Apr-Sept total income INR 40.17 bln vs INR 31.41 bln year ago
--IREDA gross NPA 3.97% as of Sept 30 vs 4.13% quarter ago, 2.19% yr ago 
--IREDA net NPA 1.97% as on Sept 30 vs 2.06% qtr ago, 1.04% year ago 
--IREDA provision coverage ratio 51.48% on Sept 30 vs 52.98% year ago

 

By Priyasmita Dutta

 

NEW DELHI – Buoyed by a sharp on-year rise in revenue from operations, Indian Renewable Energy Development Agency Ltd. reported a jump in net profit for the September quarter. Sequentially, the company's net profit more than doubled, primarily as the impairment on financial instruments was slashed sharply on a quarter-on-quarter basis. 

 

The company's net profit for Jul-Sept rose nearly 42% on year to INR 5.49 billion. Sequentially, the company's net profit was up around 123%. IREDA had reported a net profit of INR 2.47 billion for Apr-Jun due to impairment on financial instruments of INR 3.63 billion against a INR-300-million gain on this head a year ago. 

 

During the September quarter, the company's impairment on financial instruments was to the tune of INR 699.2 million, more than double of INR 338.5 million reported in the year-ago quarter. At 1029 IST, shares of the company traded at INR 153.20, up 2% from Monday's close. 

 

The public sector company's total revenue from operations was over 26% higher on year to INR 20.57 billion in the September quarter, driven by a nearly 29% rise in interest income to INR 20.30 billion. Sequentially, the revenue from operations was up 5.6% and interest income was up 6.4%. During the first two quarters of 2025-26 (Apr-Mar), IREDA's net profit was INR 7.96 billion, up 3.1% on year. Total income for the first half of this fiscal was INR 40.17 billion, up 28% from the previous year.

 

The company reported a healthy revenue from operations for the September quarter due to steady growth in disbursements. The public sector company's loan disbursements in FY26 till Sept. 30  were at INR 150.43 billion, up 54% on year. The company sanctioned loans worth INR 331.48 billion, up 86% on year, during the six-month period. With a net worth of INR 129.20 billion as of Sept. 30, the company's loan book was up 31% on year at INR 844.77 billion.

 

IREDA's annualised net interest margin was 3.72% at the end of September, 12 basis points higher on quarter and 38 bps on year. Cost of borrowing at the end of September, calculated on the basis of weighted average outstanding borrowings, was 7.24%, 16 bps lower than the quarter-ago rate and 56 bps lower from the year-ago rate. Its net interest margin in FY25 was 3.27%, higher than 2.85% in FY24.

 

IREDA's total borrowing in Apr-Sept was INR 101.38 billion, the company said in its investor presentation. IREDA is one of the few financial institutions that has been able to check its cost of borrowing from shooting up, without having to heavily depend on foreign markets like many of its peers. In its total outstanding borrowing profile of INR 699.40 billion, 86% was raised from the domestic market and the remaining from foreign markets.  

 

Although IREDA's disbursements went up steadily, its asset quality worsened compared to the year-ago period. IREDA's gross non-performing asset ratio was 3.97% at the end of September, improving slightly from 4.13% as of June-end, but worsening from 2.19% at the end of September 2024. Net non-performing asset ratio was 1.97% at the end of September, a little better than 2.06% at the end of June but a tad worse than 1.04% at the end of September 2024. The non-bank financial company's provision coverage ratio was 51.48% at the end of September, better than 51.10% at the end of June, but lower than 52.98% as of September-end last year. 

 

The non-bank finance company could have posted better profit numbers had its expenses, especially finance cost, had not gone up sharply in the reporting quarter. In Jul-Sept, IREDA's finance cost was up nearly 18% on year at INR 12.13 billion. Sequentially, finance cost was down 0.4%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

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