The Indian Renewable Energy Development Agency Limited (IREDA), a Navratna Central Public Sector Enterprise under the Government of India, announced its consolidated audited financial results for the fiscal year ended March 31, 2025, showcasing robust growth in profitability and its loan portfolio. As a leading non-banking financial company (NBFC) dedicated to financing renewable energy and energy efficiency projects, IREDA continues to drive India’s clean energy agenda with impressive financial performance.
Stellar Financial Performance
IREDA reported a consolidated net profit after tax (NPAT) of ₹1,698.34 crore for FY 2025, marking a 35.6% increase from ₹1,252.24 crore in FY 2024. The surge in profitability was fueled by a 35.8% rise in revenue from operations, which reached ₹6,743.68 crore, up from ₹4,965.34 crore in the previous year. Interest income, the backbone of IREDA’s revenue, climbed to ₹6,576.30 crore from ₹4,838.62 crore, reflecting strong demand for renewable energy financing.
The company maintained a stable net profit margin of 25.14%, slightly down from 25.22% in FY 2024, while the operating margin stood at 31.01%, compared to 33.92% in the prior year. These figures highlight IREDA’s ability to sustain operational efficiency amid rapid portfolio expansion.
Robust Balance Sheet Growth
IREDA’s consolidated total assets grew by 27.4% to ₹79,734.95 crore as of March 31, 2025, from ₹62,600.45 crore in FY 2024. The loan portfolio, a key driver of this growth, expanded by 28.2% to ₹75,319.98 crore from ₹58,775.09 crore, underscoring IREDA’s critical role in supporting renewable energy projects across India.
The company’s net worth rose by 20.0% to ₹10,266.54 crore, bolstered by retained earnings and equity capital. However, the debt-equity ratio increased to 6.31 times from 5.80 times, reflecting higher leverage to fund the growing loan book. IREDA’s diversified funding strategy included raising ₹4,307.37 crore through non-convertible securities in Q4 FY 2025, contributing to a total debt securities portfolio of ₹28,446.24 crore and borrowings of ₹33,489.50 crore.
Asset Quality and Provisioning
IREDA maintained a prudent approach to asset quality, with a cumulative impairment allowance of ₹1,920.24 crore as of March 31, 2025, up from ₹1,685.46 crore in FY 2024. Standard assets (Stage I & II) grew to ₹74,319.26 crore with a provisioning coverage of 1.41%, while non-performing assets (Stage III) increased to ₹1,866.25 crore with a provisioning coverage of 45.31%, down from 58.80% in FY 2024.
Notably, accounts worth ₹1,202.21 crore were classified as standard (Stage II) instead of non-performing (Stage III) due to interim High Court orders. IREDA adopted a conservative stance by recognizing interest income on these accounts on a collection basis and maintaining adequate impairment provisions.
Capital and Liquidity
IREDA applied a 100% risk weight to commissioned renewable energy project assets operational for over a year, resulting in a restated Capital to Risk-Weighted Assets Ratio (CRAR) of 15.51% for FY 2024 (down from 20.11%). The CRAR for FY 2025, though not disclosed, is expected to align with regulatory requirements. Liquidity remained stable, with cash and cash equivalents at ₹57.29 crore and bank balances at ₹641.34 crore. All secured non-convertible debt securities maintained a 100% security cover, reinforcing investor confidence.
Strategic Milestones
IREDA expanded its footprint by incorporating a subsidiary at IFSC GIFT City, Gujarat, registered on February 18, 2025, to operate as a finance company. The subsidiary, included in Q4 FY 2025 consolidated results, reported total assets of ₹27.76 crore, a net loss of ₹0.28 crore, and comprehensive income of ₹0.64 crore.
The company’s equity shares, listed on BSE and NSE since November 29, 2023, raised ₹1,290.13 crore through a fresh issue, with net proceeds of ₹1,259.80 crore fully utilized to strengthen its capital base for onward lending. Additionally, IREDA appointed M/s R.M. Bansal & Co., Cost Accountants, as its cost auditor for FY 2025-26, effective April 15, 2025, to ensure compliance with cost audit regulations.
Looking Ahead
IREDA’s FY 2025 performance underscores its pivotal role in financing India’s renewable energy transition. With a growing loan portfolio, strong profitability, and strategic initiatives like the GIFT City subsidiary, IREDA is well-positioned to support the country’s ambitious clean energy targets.