Indian Renewable Energy Development Agency Limited Earnings Summary — Q4 FY2026
IREDA Reports Record Annual Profit of ₹1,873 Crore Amid Q4 Earnings Pressure and Operational Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹2,249 Cr is 15.5% higher year-on-year.
- Revenue has compounded at 23.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹339 Cr is 37.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 0.2% annualised across the period.
- Operating margin stands at 78.4% in Q1 FY2027.
- Operating margin expanded by 32 bps year-on-year.
- Over the last two years operating margin has contracted by 1819 bps.
- PBT margin is 18.4%.
- Expense growth of 13.8% remained below revenue growth of 15.5%.
- Operating profit of ₹1,764 Cr is 16.0% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 65/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 2,249 | 2,175 | 2,130 | 2,057 | 1,948 | 1,905 | 1,698 | 1,630 | 1,510 | 1,391 |
| Expenses | Improving | 486 | 309 | 179 | 138 | 427 | 171 | 119 | 131 | 51 | 56 |
| Operating Profit | Improving | 1,764 | 1,867 | 1,951 | 1,919 | 1,521 | 1,734 | 1,580 | 1,499 | 1,459 | 1,336 |
| Operating Margin | Stable | 78.4% | 85.8% | 91.6% | 93.3% | 78.1% | 91.0% | 93.0% | 92.0% | 96.6% | 96.0% |
| Other Income | Accelerating | 1 | 6 | 10 | 1 | 12 | 11 | 1 | 1 | 0 | 0 |
| Interest | Improving | 1,341 | 1,241 | 1,233 | 1,213 | 1,218 | 1,104 | 1,032 | 1,030 | 975 | 847 |
| Depreciation | Stable | 10 | 13 | 11 | 10 | 10 | 11 | 10 | 9 | 9 | 9 |
| Profit Before Tax | Volatile | 414 | 619 | 717 | 696 | 305 | 630 | 538 | 460 | 476 | 480 |
| Tax | Volatile | 75 | 127 | 132 | 147 | 58 | 128 | 113 | 72 | 92 | 142 |
| Net Profit | Volatile | 339 | 493 | 585 | 549 | 247 | 502 | 425 | 388 | 384 | 337 |
| Net Margin | Stable | 15.1% | 22.6% | 27.5% | 26.7% | 12.7% | 26.3% | 25.1% | 23.8% | 25.4% | 24.3% |
Key Takeaways
- Annual standalone net profit reached ₹1,873.34 crore for FY2025-26, representing a 10.29% year-on-year increase despite quarterly volatility.
- The Board recommended a final dividend of ₹0.75 per share, bringing the total dividend for the fiscal year to ₹1.35 per share.
- Gross Non-Performing Assets (NPA) ratio stood at 3.49%, while Net NPA was contained at 1.25% as of March 31, 2026.
- IREDA reported two fraud cases totaling ₹14.80 crore during the year, including a suspected fraud involving the Gensol borrower group currently under investigation.
- The Audit Committee is currently non-existent since March 28, 2026, due to a lack of independent directors, which has led to regulatory fines from BSE and NSE.
- Successfully raised ₹2,005.90 crore via QIP in June 2025, with shareholder approval in place to raise an additional ₹2,994 crore.
- CRAR (Capital Adequacy Ratio) remains healthy at 20.39% following the capital infusion.
- Net Interest Income growth remains steady, but Q4 margins were impacted by higher impairment provisions on financial instruments (₹215.29 crore vs ₹129.26 crore in Q3).
Management Guidance
Management is seeking amendments to its Memorandum of Association to expand into emerging green technologies including Carbon Capture (CCUS), Civil Nuclear Power, and Green Data Centres. The company is actively pursuing the appointment of Independent Directors through the Ministry of New and Renewable Energy (MNRE) to resolve governance non-compliance issues.
Sentiment Shift
Stable
While annual growth remains robust, quarterly profitability was hit by higher impairment costs and a governance gap regarding board composition, offsetting strong revenue momentum.
Outlook
The outlook remains positive due to IREDA's Navratna status and its central role in India's 500GW renewable energy target by 2030, supported by a planned ₹2,994 crore capital raise.
From the Annual Report (Key Quotes)
“The matter relating to appointment of Independent Directors is beyond the control of the Company and there is no violation on the part of the Company.”
“The Company has appropriated the difference of ₹300.46 Crores between Ind AS impairment and IRACP norms to Impairment Reserve.”
“To accelerate India’s clean energy transition... the Board accorded approval for amendment in the object clause of MoA to explore new business opportunities in nuclear power and climate mitigation.”
Official Quarterly Documents
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This summary is AI-generated from Indian Renewable Energy Development Agency Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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