Indian Renewable Energy Development Agency Ltd. (IREDA), the state-owned non-banking financial company (NBFC), reported a 49% year-on-year increase in operating profit and a 30% rise in total income from operations for the first quarter of FY 2025–26, according to a company press release dated July 21.

The company’s outstanding loan book rose to INR799.41bn ($9.05bn), marking a 26% increase over the previous year. This growth was driven by strong disbursements in solar and wind energy projects, alongside emerging areas such as green hydrogen, smart meters, and electric vehicles.

During the quarter, IREDA successfully raised INR59.03bn, including a JPY26bn external commercial borrowing (ECB) from SBI Tokyo, enhancing access to low-cost capital. The company maintained its AAA (Stable) domestic credit rating. Net worth climbed 36% to INR124.02bn, signalling sustained investor confidence and IREDA’s dominant position in renewable energy financing, the company said.

In a significant policy development, the Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has notified IREDA bonds as 'long-term specified assets' under Section 54EC of the Income-tax Act, 1961, with effect from July 9, 2025. This move allows investors to claim capital gains tax exemptions by investing in IREDA bonds and is expected to lower the company’s cost of capital while broadening investor participation.

IREDA continued to improve its asset quality by strengthening credit appraisal frameworks and recovery mechanisms. The organisation has also broadened its lending portfolio, in line with India's sustainability objectives and global climate commitments.

India recently surpassed its target of achieving 50% non-fossil fuel-based power capacity five years ahead of schedule, underscoring the expanding potential in clean energy. IREDA continues to play a central role in supporting this transition, contributing towards the country’s broader 500 GW non-fossil fuel capacity target by 2030.

 

 

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