IREDA has released its Q1 FY26 results, and the numbers reveal a mixed picture. While the company posted strong growth in revenue and loan disbursements, net profit saw a sharp decline of nearly 36% year-on-year, dropping to ₹247 crore from ₹384 crore in the same quarter last year. This fall was mainly due to higher expenses and provisioning.

On the positive side, IREDA’s revenue from operations grew around 29% year-on-year to ₹1,947 crore, reflecting robust demand in the renewable energy financing space. Net Interest Income (NII) rose by 36% to ₹691 crore, and total interest income grew by 29% to ₹1,909 crore. These gains came alongside a significant expansion in its loan portfolio.

Loan sanctions surged 29% to ₹11,740 crore, and disbursements increased 31% to ₹6,981 crore. The total outstanding loan book reached ₹79,960 crore, marking a 27% year-on-year increase. However, asset quality has come under pressure, with Gross NPA rising to 4.13% and Net NPA to 2.06%, slightly up from the previous quarter.

Another concern is IREDA’s exposure of ₹470 crore to Gensol Engineering, which is currently under interim SEBI investigation and involved in NCLT proceedings. Investors will be closely watching developments on this front.

In a major boost, IREDA has received 54EC capital gains bond status from the government (effective July 9, 2025), which could lower funding costs and attract more capital. Additionally, the company raised ₹2,005 crore through a Qualified Institutional Placement (QIP) in June, strengthening its balance sheet.

Overall, while IREDA continues to expand aggressively in the renewable finance space, pressure on profit margins and asset quality will remain key areas to monitor in the coming quarters.