IREDA Q3 FY25 Results: Profit Jumps 15%, Auditors Flag ₹400 Cr Loan Classification Issue

New Delhi, January 9, 2026: Indian Renewable Energy Development Agency Ltd. (IREDA), the state-owned green financing giant, has announced a significant surge in its consolidated net profit for the nine-month period ended December 31, 2025. The company's profit after tax (PAT) stood at ₹1,381.36 crores, marking a strong 15.4% increase from ₹1,196.81 crores reported in the corresponding period last year.

Strong Financial Performance
The 'Navratna' company under the Ministry of New and Renewable Energy (MNRE) saw its total income climb to ₹6,157.61 crores, up from ₹4,840.08 crores in the previous year. This growth was primarily driven by a substantial 28.1% rise in interest income from loans, which reached ₹5,938.14 crores (net of rebate).

On the operational front, IREDA's loan book expanded robustly to ₹85,989.07 crores as of December 31, 2025, compared to ₹68,045.82 crores a year ago, reflecting continued momentum in financing renewable energy projects across India.

Auditor Raises "Emphasis of Matter"
However, the independent audit report by joint auditors Shiv & Associates and Rao & Emmar Chartered Accountants has drawn attention to two key issues.

Most notably, the auditors highlighted that loans aggregating ₹400.24 crores, which should have been classified as Stage III (Non-Performing Assets) as per prudential norms, continue to be classified as Stage II (Standard) assets. This classification is based on interim orders from various High Courts, restraining IREDA from taking coercive action against the borrowers. The auditors stated, "Interest income on such accounts... has been recognized on collection basis and allowance for impairment loss has been made in accounts accordingly." This implies that while the asset classification is not upgraded, the company is not accruing interest unless received and has made provisions against potential losses.

Secondly, the auditors noted a revision in the company's Capital to Risk-Weighted Assets Ratio (CRAR). Effective March 31, 2025, IREDA applied a higher 100% risk weight (up from 50%) to its commissioned renewable energy project assets. Consequently, the CRAR for the period ended December 31, 2024, has been restated downwards from 19.63% to 15.52%. The CRAR as of December 31, 2025, remains healthy at 19.54%.

The audit report clarifies that the opinion on the financial statements is not modified due to these matters.

Capital Raising and Subsidiary
During the period, IREDA strengthened its capital base by raising ₹2,005.90 crores through a Qualified Institutional Placement (QIP) in June 2025. Post-issue, the Government of India's shareholding stands at 71.76%.

The consolidated results also include the performance of its wholly-owned subsidiary, IREDA Global Green Energy Finance IFSC Ltd., incorporated in GIFT City, which received its final registration from IFSCA in February 2025.

Management Commentary
In their statement accompanying the results, the Board of Directors, led by Chairman & Managing Director Shri Pradip Kumar Das and Director (Finance) Dr. B K Mohanty, reaffirmed the company's commitment to its motto "ENERGY FOR EVER" and its role in accelerating India's energy transition.

Analyst Viewpoint
Market analysts view the results as positive, reflecting IREDA's central role in funding the renewable sector. The audit qualifications, while requiring monitoring, are seen as procedural notes related to legal processes rather than fundamental operational concerns. The company's ability to maintain a strong CRAR despite a change in RBI's risk-weight framework is viewed favorably.