IREDA Q2 revenue rises 13.59% YoY to ₹2,340 crore

Indian Renewable Energy Development Agency Limited (NSE: IREDA)

reported Q2 [add FY] revenue of ₹2,340 crore, against ₹2,060 crore in the same quarter last year. That is a rise of about 13.59% YoY. The company lends to solar, wind and storage projects. Its revenue mostly follows how much it has lent and at what rate. A 13.59% rise points to a loan book that kept growing through the quarter. The data I have does not split the gain between loan growth and yield, so I cannot say which did more. My view: Revenue growth alone is half the picture for a lender. The better test is whether income grew faster than borrowing costs and bad loans. Revenue is up ₹280 crore YoY, which is a good start. Profit, net interest margin and gross NPA for the quarter would show how much of it reaches the bottom line. Renewable projects take years to build, so stress can show up late. What I am watching: Over the next 0 to 3 months: the next loan disbursement update, asset quality numbers, and borrowing cost trends for PSU lenders. Higher funding costs would squeeze the spread even if revenue keeps rising. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.