IREDA Reports 36% YoY Net Profit Growth in Q2 FY25 Amid Strong Loan Sanctions

IREDA Reports 36% YoY Net Profit Growth in Q2 FY25 Amid Strong Loan Sanctions

Indian Renewable Energy Development Agency (IREDA), the state-owned green energy-focused non-banking financial corporation, has reported a 36.18% year-on-year rise in net profit for the second quarter of the financial year 2024-25. The company’s profit after tax reached Rs 387.75 crore, up from Rs 284.7 crore in the same quarter last year.

IREDA also made significant strides in reducing its net Non-Performing Assets (NPAs), which decreased to 1.04% in Q2 FY25 from 1.65% in the corresponding period of the previous fiscal year. The company’s net worth as of September 30, 2024, rose by 41.87%, standing at Rs 9,336.15 crore, compared to the previous year.

Revenue from operations for the quarter surged 38.5% to Rs 1,630.38 crore, up from Rs 1,176.96 crore in Q2 FY24. The company sanctioned loans worth Rs 8,723.78 crore during the quarter, a significant increase from Rs 2,852.05 crore in the same period last year. Loan disbursements also grew, reaching Rs 4,461.87 crore, up from Rs 3,099.98 crore a year ago. As of September 30, 2024, IREDA’s total loan book stood at Rs 64,564.36 crore, up from Rs 47,514.48 crore in the previous year’s corresponding quarter.

Pradip Kumar Das, Chairman and Managing Director of IREDA, emphasized the company's commitment to supporting India's renewable energy ambitions. "IREDA’s Q2 results reflect our unwavering dedication to advancing India’s renewable energy goals. Our substantial growth in loan sanctions and disbursements underscores our commitment to supporting green projects across the nation," Das said.

Additionally, IREDA has received approval from the Department of Investment and Public Asset Management (DIPAM) to establish a wholly owned subsidiary aimed at expanding its retail business. The new subsidiary will focus on segments such as PM KUSUM, rooftop solar, and other business-to-consumer (B2C) areas within the renewable energy sector, including electric vehicles (EVs), energy storage, green technologies, sustainability, and energy efficiency.