IREDA Q1 FY27: PAT rebounds 37% YoY to ₹338.5 Cr but falls 31% QoQ as provisions double

IREDA's consolidated net profit for the quarter ended June 30, 2026 came in at ₹338.53 Cr, up 37.1% year-on-year from ₹246.88 Cr but down 31.3% sequentially from ₹492.63 Cr in Q4 FY26. Total income rose to ₹2,250.60 Cr (+14.8% YoY, +3.2% QoQ), with interest income at ₹2,198.72 Cr; EPS was ₹1.21 versus ₹0.91 a year ago. Standalone PAT was ₹337.50 Cr (EPS ₹1.20), essentially identical to the consolidated number, so there is no material divergence between the two bases this quarter. The YoY profit recovery is being measured off a depressed base — Q1 FY26 itself had fallen 35.6% YoY, so this quarter's PAT still sits below the ₹383.69 Cr IREDA posted in Q1 FY25. The sequential decline is driven almost entirely by loan-loss provisioning: impairment on financial instruments nearly doubled to ₹418.54 Cr from ₹215.29 Cr in Q4 FY26 (and is up 15.4% YoY from ₹362.61 Cr), while finance cost and opex moved only modestly. Consolidated net profit margin compressed to 15.04% from 22.58% in Q4 FY26, even as it expanded from 12.60% a year earlier; operating margin similarly improved YoY to 18.34% from 15.02%. Asset quality actually improved on a YoY basis — gross NPA ratio 3.75% versus 4.13%, net NPA 1.22% versus 2.06% — suggesting the higher provisioning reflects front-loaded coverage rather than fresh slippage. Management has no formal guidance on record for this quarter, and none surfaced in a web check, so vs-guidance is unclear. Against IREDA's own pre-result preview, interest income beat the ~₹2,100 Cr estimate, but the loan book of ₹94,851.88 Cr (Stage I/II plus Stage III) as of June 30 came in below the ~₹97,500 Cr expectation, and net profit of ₹338.53 Cr missed the ₹350–400 Cr band flagged pre-result. No management press release accompanied this filing to cross-check against. The company raised ₹1,500 Cr via privately placed unsecured taxable bonds during the quarter; net worth stood at ₹14,137.19 Cr with CRAR of 20.28% and debt/equity of 5.59x. Notably, the Gensol Engineering fraud declaration — flagged pre-result as the single biggest credit-quality uncertainty — was made July 10, 2026, after this quarter's June 30 cut-off; the filing's notes disclose only routine ECL/Stage-III methodology with no Gensol-specific exposure or provisioning called out. The quarter also saw a new government nominee director appointed and the cost auditor re-appointed for FY27, both procedural. The next print should show whether the elevated ₹418.54 Cr provisioning run-rate persists or normalizes toward Q4 FY26 levels, and whether Q2 FY27 carries any Gensol-specific credit disclosure now that the fraud declaration falls within that quarter. Loan book and disbursement pace — the swing factor the preview flagged — will need to close the gap to the ~₹97,500 Cr mark for FY27 growth to stay on track.