IREDA’s Q3 Profit Surges 67%, NPAs Continue to Decline

The company’s loan book increased 33% YoY to ₹505.8 billion


The government-owned lender Indian Renewable Energy Development Agency (IREDA) has reported a 67% year-over-year (YoY) increase in profit after tax for the third quarter (Q3) of the financial year (FY) 2023-24 to ₹3.36 billion (~$40.42 million) from  ₹2.01 billion (~$24.18 million).

The considerable profit growth was primarily driven by the consistent growth in the company’s loan book and a significant reduction in its net non-performing assets (NPA) to 1.52% in Q3 from 2.03% in the same period last year, a 25% improvement.


Source: IREDA

IREDA’s total income from operations in Q3 was recorded at ₹12.53 billion (~$150.76 million), a 44% YoY increase from ₹8.69 billion (~$104.56 million).

At the end of the quarter, the lender’s loan book recorded a 33% YoY increase to ₹505.8 billion (~$ billion) from ₹378.88 billion (~$4.55 billion).

IREDA’s net worth saw a 45% YoY increase to ₹81.35 billion (~$978.82 million).

9M FY 2024

The company’s net profit for the first nine months (9M) of FY 2024 was ₹9.15 billion (~$110.09 million), a 50% YoY increase from ₹6.11 billion (~$73.51 million).

The total income from operations for 9M was ₹35.73 billion (~$429.93 million), a 46% increase from ₹24.46 billion (~$294.32 million) recorded during the same period last year.


Source: IREDA

The solar sector accounted for the highest share of outstanding loans by IREDA as of December 2023, at 30%. Wind and Hydropower followed at 21% and 13% respectively. The manufacturing sector accounted for 5% of the outstanding loan composition, whereas Ethanol and Biomass stood at 3% each, and the hybrid (wind and solar) segment was at 2%. The electric vehicle segment constituted 1% of the composition.

In December, IREDA launched its retail division with an emphasis on providing loans in the Business-to-Consumer (B2C) sector. The strategic initiative targets borrowers under the PM-KUSUM program, rooftop solar consumers, and other B2C segments.

The Central Public Sector Enterprise’s status was elevated from ‘Schedule B’ to ‘Schedule A,’ providing the agency greater financial autonomy and enabling strategic decisions to enhance its mission of expediting renewable energy adoption nationwide. This status elevation is expected to empower the agency with increased financial autonomy to advance renewable energy adoption in India and facilitate green projects in various states.

IREDA reported a 54% YoY increase in profit after tax for the second quarter of FY 2024, from ₹1.84 billion (~$22.13 million) to ₹2.85 billion (~$34.28 million).