Government-owned lender Indian Renewable Energy Development Agency’s (IREDA) loan approvals climbed by 29% year-over-year (YoY) to ₹117.4 billion (~$1.37 billion) in the first quarter (Q1) of the financial year (FY) 2025-26, compared to ₹91.36 billion (~$1.06 billion).

Loan disbursements rose by 31% YoY to ₹69.81 billion (~$815.52 million), up from ₹53.26 billion (~$622.18 million).

The company’s outstanding loan book also registered a strong growth, reaching ₹799.6 billion (~$9.34 billion) as of June 30, 2025, reflecting a 27% YoY increase over ₹632.07 billion (~$7.38 billion).

IREDA’s loan approvals stood at ₹474.53 billion (~$5.5 billion) in FY 2025 compared to ₹373.54 billion (~$4.3 billion) in FY 2024. Its loan disbursement also increased to ₹301.68 billion (~$3.5 billion) from ₹250.89 billion (~$2.9 billion), an increase of 20% YoY.

Recently, IREDA raised ₹20.06 billion (~$234.71 million) through qualified institutional placement (QIP) of shares. The company issued a total of 121,466,562 equity shares at a price of ₹165.14 (~$1.93) per share, which includes a premium of ₹155.14 (~$1.82). The issue price was set at a 5% discount, or ₹8.69 (~$0.10), on the floor price.

The latest equity issuance was part of IREDA’s broader plan to raise ₹50 billion (~$588.24 million) through QIPs, with the strategic goal of limiting the Government of India’s shareholding dilution to a maximum of 7% in the post-issue paid-up equity capital.

In addition to equity fundraising, IREDA has been actively diversifying its capital sources. In March 2025, the agency signed a loan agreement with the Tokyo branch of the State Bank of India to raise JPY 26 billion (~$172 million), including a greenshoe option of JPY 10 billion (~$66.2 million).

IREDA has also made progress in the domestic debt market. It recently issued its first perpetual bonds worth ₹12.47 billion (~$144.5 million) at an annual coupon rate of 8.4%. Further boosting its financial position, IREDA received ₹244.8 million (~$2.6 million) from the Income Tax Department as partial relief for the assessment year 2011–12 related to prior disallowances.