Indian Renewable Energy Development Agency Q2 FY27 results: net profit up 0.5% to ₹552.17 crore

How did Indian Renewable Energy Development Agency perform in Q2 FY27?

Indian Renewable Energy Development Agency reported consolidated revenue of ₹2,346 crore in Q2 FY27, up ₹288.58 crore or 14.0% from ₹2,057 crore in Q2 FY26. Profit after tax was ₹552.17 crore, up ₹2.84 crore or 0.5% from ₹549.33 crore, while basic EPS remained unchanged at ₹1.97. No EBITDA or EBITDA margin figure was provided.

Against Q1 FY27, consolidated revenue increased ₹96.39 crore or 4.3% to ₹2,346 crore. Profit before tax rose 70.3% to ₹704.48 crore, while profit after tax increased 63.1% to ₹552.17 crore and basic EPS rose from ₹1.21 to ₹1.97. On the standalone basis, revenue was ₹2,343.73 crore and profit after tax was ₹554.27 crore.

What changed in Indian Renewable Energy Development Agency's costs and profit?

Total expenses increased ₹280.95 crore or 20.6% to ₹1,642 crore in Q2 FY27 from ₹1,361 crore in Q2 FY26. Finance costs were up ₹164.30 crore or 13.5% to ₹1,377 crore, while employee cost rose ₹4.14 crore or 16.0% to ₹30.09 crore. Depreciation declined ₹0.15 crore or 1.4% to ₹10.29 crore, and other expenses fell ₹5.12 crore or 12.1% to ₹37.06 crore.

Other income increased ₹0.46 crore or 80.7% to ₹1.03 crore, and there was no exceptional item. Profit before tax rose ₹8.09 crore or 1.2% to ₹704.48 crore. Tax expense increased ₹5.25 crore or 3.6% to ₹152.31 crore, and the net profit margin declined from 26.7% to 23.5%, a fall of 3.2 percentage points. The filings did not state why the expense and margin movements occurred.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 14.7% to ₹4,595.32 crore from ₹4,004.88 crore in H1 FY26. Total income increased 14.4% to ₹4,597.48 crore, while profit before tax rose 11.7% to ₹1,118.2 crore. Profit after tax increased 11.9% to ₹890.67 crore, and EPS rose from ₹2.88 to ₹3.17.

What do the balance sheet and cash flow show?

Total assets increased to ₹98,046.8 crore at 30 September 2026 from ₹93,807.87 crore at 31 March 2026, while total equity rose to ₹14,340.44 crore from ₹13,785.42 crore. Cash and cash equivalents increased to ₹122.15 crore from ₹47.69 crore. A consolidated borrowing figure was not provided for the balance-sheet comparison.

Operating cash flow for H1 FY27 was an outflow of ₹2,821.52 crore, compared with an outflow of ₹6,648.58 crore in H1 FY26. Investing cash flow was an outflow of ₹77.89 crore, against ₹149.56 crore, while financing cash flow was an inflow of ₹2,973.87 crore, against ₹6,940.53 crore. Capital expenditure was ₹6.05 crore, compared with ₹8.15 crore.

How has Indian Renewable Energy Development Agency done over the last 7 quarters?

Revenue rose in each of the last three quarters on a year-on-year basis, reaching ₹2,345.86 crore in Q2 FY27 from ₹2,057.28 crore in Q2 FY26. Profit after tax was ₹552.17 crore, above ₹549.33 crore in Q2 FY26 and ₹338.53 crore in Q1 FY27. In the quarterly series, profit after tax bottomed at ₹246.88 crore in Q1 FY26 and reached its highest point of ₹585.16 crore in Q3 FY26.

Revenue increased from ₹1,905.08 crore in Q4 FY25 to ₹2,345.86 crore in Q2 FY27, while profit after tax moved from ₹501.55 crore to ₹552.17 crore over the same period. The latest quarter followed a lower profit result in Q1 FY27, and the profit margin recovered to 23.5% from 15.0% in that quarter. EBITDA margin figures were not provided for the quarterly series.

What else did the company announce?

The board approved the audited standalone and consolidated financial results and financial statements for the quarter and half year ended 30 September 2026. The company filed an H1 FY27 investor presentation with the results, which stated that the gross loan portfolio was ₹97,411 crore. The same-day filings reviewed did not announce a dividend, a new fund raise or any appointment.

What did the auditors point out?

The auditors gave an unmodified opinion on the consolidated interim financial statements and said they presented a true and fair view in conformity with applicable accounting standards. Their report included an Emphasis of Matter relating to Note No. 38(2) regarding the constitution of the audit committee and adoption of the consolidated financial statements, but stated that the opinion was not modified for this matter. The standalone reports used similar emphasis-of-matter language and also stated that the opinions were not modified.

The auditor’s report described the Board’s responsibility to assess the company’s ability to continue as a going concern and disclose applicable going-concern matters. It also described the auditors’ responsibility to evaluate the appropriateness of the going-concern basis and whether a material uncertainty existed. The filing did not report a qualified opinion or a going-concern material uncertainty.

What did Indian Renewable Energy Development Agency's management say?

Management’s investor presentation described IREDA as India’s largest pure-play green financing NBFC, 71.76% owned by the Government of India, with an AAA domestic credit rating and a BBB international credit rating. It highlighted a gross loan portfolio of ₹97,411 crore and borrowings of ₹80,882 crore as of 30 September 2026. No quantitative guidance was provided.

Management said the interest spread declined to 2.21% from 2.63% year on year, while gross NPA increased to 3.57% and net NPA was 1.08%. It also identified a gross NPA book of ₹3,482 crore, CRAR of 19.83% against 20.59% at FY26 end, and ₹2,028 crore of unhedged foreign borrowings as risk indicators. Management also noted that ₹671 crore from a single FY20 borrower was shifted to NPA stage following an Andhra Pradesh High Court order dated 2 July 2025.

Management said ₹2,006 crore had been raised through a QIP in 2025, approval had been received from the Ministry of Finance for issuing 54EC bonds, and an ECB facility agreement had been signed with SMBC for JPY 28 Billion. It added that subsidiary IGGEFIL had received a BBB+/Stable international rating. The filing did not provide a forward earnings or loan-growth target.

How did Indian Renewable Energy Development Agency shares react?

The filing appeared after market hours from a prior close of ₹106.54. IREDA fell 2.0% within 5 minutes, 15 minutes and 30 minutes, and closed 2.8% lower on the reaction day at ₹107.81. By the next day’s close, the stock was down 3.7% from its pre-results close, and by the fifth session it was down 5.6%.

The Financial Institution sector’s median move was down 2.0% on the reaction day, down 1.8% by the next day and down 4.8% by the fifth session. IREDA underperformed the sector median by 0.8 percentage points on the reaction day, 1.9 percentage points by the next day and 0.8 percentage points by the fifth session. Earlier reaction-day moves included declines of 2.2% on 3 August 2026 and 6.8% on 29 May 2026.