Loan Disbursements Surge 31%, Net NPAs Improve Significantly

IREDA **IREDA: Loan Disbursements Surge 31%, Net NPAs Improve Significantly** **IREDA** Indian Renewable Energy Development Agency reported steady Q2 FY27 performance, with standalone net profit rising to ₹554 crore compared with ₹549 crore in Q2 FY26. **Why it matters:** Revenue from operations increased 14% YoY to ₹2,345 crore, while loan disbursements jumped 31% to ₹10,579 crore. The loan book expanded 15% to ₹97,411 crore. Asset quality also improved, with Net NPAs declining to 1.08% from 1.97% a year earlier. Net worth increased 11% to ₹14,337 crore. **My view:** Strong loan disbursement growth and improving asset quality are encouraging signs for IREDA. Its role in financing India's renewable energy transition offers long-term business opportunities. However, profitability growth remains moderate. **What to watch:** Loan book growth, NIM, borrowing costs, asset quality, credit costs, renewable energy financing demand and capital adequacy. **Stance:** IREDA offers exposure to India's renewable energy financing opportunity. Sustainable profitability and disciplined lending will remain key factors. **Disclosure:** I am a SEBI Registered Research Analyst. This content is for educational and informational purposes only and is not investment advice or a recommendation to buy or sell any security. Investments in securities markets are subject to market risks.