IREDA Q2 Results October 19, 2026: Profit Edges Up to ₹554 Crore as Disbursements Jump 31%

The IREDA Q2 results look flat on the headline and much busier underneath. The state-run renewable energy lender reported standalone net profit of ₹554.26 crore for the September quarter, barely above the ₹549 crore it made a year ago, according to its audited results filed with the BSE on Monday, October 19. That is growth of less than 1%. Yet the loan book grew about 15% and disbursements jumped 31%.

IREDA Q2 results: the key numbers

All figures below are standalone and come from the company’s filing unless we say otherwise:

• Revenue from operations rose 13.9% year-on-year to ₹2,343.70 crore, from ₹2,056.88 crore. Interest income, the bulk of it, grew 14.1% to ₹2,316.97 crore.
• Profit before tax was ₹706.57 crore, up just 1.5% from ₹696.07 crore.
• Net profit was ₹554.26 crore against ₹549 crore. Earnings per share stayed at ₹1.97 in both quarters.
• Sequentially, profit rose 64% from ₹337.50 crore in the June quarter.
• For the first half (April to September), net profit rose 12.1% to ₹891.75 crore from ₹795.68 crore.

On a consolidated basis, the filing shows net profit of ₹552.14 crore versus ₹549.33 crore, a rise of about 0.5%. That is the number CNBC-TV18 led with. CNBC-TV18 also reported that operating profit rose 16.5% to ₹904 crore from ₹776 crore.

Why a 15% bigger loan book didn’t lift profit

Gross loan assets stood at ₹97,328.87 crore at the end of September, up 15.3% from ₹84,386.08 crore a year earlier. The company’s statement, reported by PTI via Business Standard, put disbursements at ₹10,579 crore for the quarter, 31% more than the ₹8,062 crore it lent a year ago.

So where did the growth go? Costs ran ahead of income. Total expenses rose about 20% to ₹1,638.18 crore from ₹1,361.38 crore, while total income grew 14%. Finance cost, the biggest item by far, was ₹1,376.48 crore for the quarter. Provisions are the other big piece. The filing shows the lender’s stock of impairment allowance on loans at ₹3,287.25 crore, up from ₹2,337.06 crore a year earlier. Provision coverage on Stage III (bad) loans climbed to 70.44% from 51.48%. That eats into profit but leaves the balance sheet better protected.

The sharp jump from the June quarter has a simple reason too. Impairment charges fell to ₹186.81 crore in Q2 from ₹418.54 crore in Q1, which is why profit rose so much sequentially.

Asset quality: the better part of the story

Gross NPA came in at 3.57%. CNBC-TV18 reported that this is down from 3.76% in the June quarter, and that net NPA eased to 1.08% from 1.23%. Chairman and managing director Bijay Kumar Mohanty said in the company’s statement that net NPA had fallen from 1.97% a year earlier.

Capital is fine. The filing shows a capital adequacy ratio (CRAR) of 19.83%, slightly below 20.10% a year ago, and net worth up about 11% to ₹14,337.40 crore from ₹12,920.18 crore.

One item investors will notice: the filing says three fraud cases totalling ₹672.74 crore were reported to the RBI during the half year. Two of them, linked to a single borrower group, account for the full amount. Both had been disclosed earlier, and IREDA says it has already provided for them in full.

What this means for the stock

IREDA shares closed at ₹106.50 on the BSE on Monday, down 1.48%, before the numbers came out, CNBC-TV18 reported. Tuesday is the first session to price in the results.

Our take: the loan growth and the asset-quality cleanup are real, but profit isn’t keeping pace with lending yet. If credit costs stay closer to Q2 levels than Q1, the second half should look better. Lenders in the same results week tell a similar story; see our notes on Bajaj Finance’s Q2 and Union Bank of India’s Q2. For a primer on reading provisions and NPAs, our guide on how to analyse quarterly results is a good place to start.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from IREDA’s Q2 FY27 audited results filed with the BSE and the CNBC-TV18 and Business Standard (PTI) reports, all linked above. Please consult a SEBI-registered investment adviser before making any investment decision.