Indian Renewable Energy Development Agency Ltd (IREDA), the Navratna government-owned NBFC that finances renewable energy projects, reports its Q2 FY 2026-2027 results with funding costs and asset quality in focus after a quarter in which the 10-year G-sec yield rose to 7.18% by September 30. The print will speak to whether the elevated impairment run-rate of Rs. 418.54 Cr seen in Q1 persists, and whether the interest spread — already compressed to 2.34% — stabilises or narrows further.
| Results date | October 19, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,248.39 Cr |
| Previous quarter PAT | Rs. 337.50 Cr |
| Market cap | Rs. 30,478.4 Cr |
| CMP | Rs. 108.39 |
Per the board meeting intimation dated October 12, 2026, audited Q2/H1 FY27 results are to be approved on October 19, 2026. The trading window was closed from October 1, 2026 (intimated September 25, 2026).
Separately from the results agenda, IREDA's FY26 final dividend of Rs. 0.75 per share (7.50%) was approved at the 39th AGM on September 29, 2026, with the record date fixed at September 11, 2026 and payment within 30 days. This completes a total FY26 payout of Rs. 379.25 Cr including the 6% interim dividend of Rs. 0.60 per share.
The Q2 FY27 print will test whether IREDA's Q1 softness — PAT of Rs. 337.50 Cr, down 31.51% QoQ on an impairment of Rs. 418.54 Cr — was a one-off or the start of a heavier provisioning cycle, with GNPA at 3.76% at Jun-26 versus the prior declining trend of 4.13% to 3.49%. Funding costs are the quarter's dominant driver: the 10-year G-sec yield rose from about 6.91% on August 28 to 7.18% by September 30, and the RBI homepage showed the policy repo rate at 5.50% as of October 8-13 after a 25-basis-point hike, pressuring a book that continuously refinances (Rs. 31,914 Cr raised in FY26 and a Rs. 1,500 Cr bond issued in Q1 FY27). The yen appreciated roughly 3.5-4% against the rupee over the quarter, a modest translation headwind on the Rs. 2,334 Cr of unhedged foreign borrowings (23% of the foreign book at Mar-26, with 77% hedged). On the demand side, India added 24.56 GW of renewable capacity in H1 FY 2026-27 and cumulative RE capacity reached about 299.2 GW by September 2026, supporting the loan book that stood at Rs. 94,936 Cr at Jun-26, up 19% YoY. Management's only formal FY 2026-27 target framework is the performance-based MNRE MoU signed October 5, 2026, whose numerical targets were not disclosed; the call is also expected to cover governance updates including the Audit Committee, absent since March 28, 2026.
Asset quality and impairment run-rate: Provisioning is the biggest swing factor for the profit direction this quarter.
Spread and cost of borrowings: Margin direction against a rising domestic rate environment.
Sanction-disbursement pipeline and funding execution: Growth momentum versus the FY26 record and funding diversification progress.
Governance, board composition and CMD appointment: The dominant overhang from the June 2026 quarter carries into this print.
MNRE MoU FY 2026-27 targets: The only formal target framework for the year.
Revenue from operations rose 15.46% YoY and 3.38% QoQ to Rs. 2,248.39 Cr in Q1 FY27, supported by a loan book of Rs. 94,936 Cr at Jun-26, up 19% YoY. FY26 revenue was Rs. 8,309 Cr, up 23%.
Q1 FY27 standalone PAT of Rs. 337.50 Cr was down 31.51% QoQ even though it grew 36.82% YoY, coinciding with impairment on financial instruments of Rs. 418.54 Cr — about 95% higher than the Rs. 215 Cr booked in Q4 FY26. Total expenses rose to Rs. 1,836.82 Cr from Rs. 1,561.64 Cr in Q4 FY26.
GNPA rose to 3.76% at Jun-26 from 3.49% at Mar-26 (+27 bps QoQ), while NNPA improved to 1.22% from 1.29%. Provision coverage ratio stood at 68.22% at Jun-26, up from 63.88% at Mar-26.
IREDA signed a performance-based MoU with MNRE on October 5, 2026 outlining strategic targets for FY 2026-27, but the numerical targets were not disclosed. The company has been rated 'Excellent' under the MoU for five consecutive years, scoring 96.42/100 for FY25.