IREDA's latest updates

recently released its Q1 FY26 financial results, reporting a 35.7% year-on-year decline in net profit to ₹247 crore, primarily due to higher expenses. However, the company's revenue from operations grew significantly by 29% to ₹1,947.60 crore, indicating robust business activity. In a key development for renewable energy financing, the CBDT has granted tax exemption benefits to IREDA's bonds under Section 54EC of the Income-tax Act, 1961, effective July 9, 2025. This allows investors to save capital gains tax by investing in these bonds, which is expected to attract more funding for green energy projects and reduce IREDA's borrowing costs. Operationally, IREDA demonstrated strong growth in its core lending business, with loan sanctions increasing by 29% to ₹11,740 crore and disbursements rising by 31% to ₹6,981 crore in Q1 FY26. Consequently, the company's outstanding loan book expanded by 27% to ₹79,941 crore. However, IREDA's asset quality deteriorated, with gross NPAs rising to 4.13% from 2.45% in the previous quarter, partly due to exposure to Gensol Engineering, against which IREDA has initiated insolvency proceedings.