IREDA Q1 FY27: PAT rebounds 37% YoY to ₹338.5 Cr but falls 31% QoQ as provisions double
PAT +37.13% YoY · revenue +15.5% · margins expanding · miss vs street
₹2,249.45 Cr
+15.5% YoY
₹338.53 Cr
+37.13% YoY
15.04%
+2.4pp YoY
₹1.21
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.
Q1 FY-2027 vs prior quarters
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.
The stock went into the print at ₹123, down 4.3% over the past month of trading.
For context: revenue is at a 5-quarter high.
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.
W1
Whether the ₹418.54 Cr Q1 provisioning run-rate (vs ₹215.29 Cr in Q4 FY26) persists or normalizes in Q2 FY27
W2
Any Gensol Engineering-specific credit/provisioning disclosure in Q2 FY27, since the July 10, 2026 fraud declaration falls after this quarter's cut-off
W3
Loan book growth toward the ~₹97,500 Cr pre-result expectation (actual ₹94,851.88 Cr as of June 30, 2026) and disbursement pace
Loan book momentum to take centre stage as IREDA reports Q1 results
Oversold stock looks to India's renewable energy funding surge. Weak Q4 profit clouds the picture; watch for loan disbursement traction and margin stability.
What matters in Q1 FY27 for IREDA
Loan book growth and interest income trajectory are the north stars for IREDA investors. The company's core mandate—financing renewable energy projects toward India's 500 GW target by 2030—means loan disbursement traction directly drives revenue. FY26 delivered strong fundamentals: interest income up 24% to ₹8,180 Cr, loan book up 22% to ₹93,069 Cr, and loan disbursements up 16% to ₹34,946 Cr. Q1 FY27 will show whether this momentum survives Q1 (historically seasonal), and critically, whether profit margins stabilise after Q4's 15.8% QoQ decline.
~₹2,100 Cr
Assuming 23% YoY growth (FY26 guidance pace). Q1 FY26 was ₹1,701 Cr.
~₹97,500 Cr
On-plan 5% sequential growth from ₹93,069 Cr (Mar 31, 2026), consistent with 22% annual momentum.
~₹350–₹400 Cr
Q4 FY26 was ₹493 Cr; Q1 FY26 was ₹247 Cr. Assume modest recovery but compressed by cost pressures.
~₹8,000–₹8,500 Cr
Q1 FY26 logged ₹6,981 Cr. FY26 full-year 16% growth suggests Q1 may sustain low double-digit momentum.
Strong Q1 = continued loan disbursement traction and NII expansion despite margin squeezed. Loan book crosses ₹97,500 Cr; interest income stays on the 23–24% growth rails; profit stays above ₹350 Cr despite Q4's dip. Weak Q1 = disbursements cool, loan book growth rate slips below 5% QoQ, or NPA stress emerges from prior-period slippages. Profit below ₹300 Cr signals margin compression beyond seasonal norm; guidance miss on loan sanctions (FY26 was only +9% vs 16% disbursement growth) hints at pipeline contraction.
Is IREDA on track?
FY26 was solid: revenue +23%, loan book +22%, disbursements +16%. Full-year FY27 guidance remains unverified against actuals (not disclosed in our data), so Q1 operates in a vacuum. That said, the trajectory is intact. India's renewable energy capex push, driven by the 500 GW target and supporting schemes, means pipeline visibility for IREDA is high. The caution: Q4 FY26 profit declined 15.8% QoQ despite revenue growth—a sign that interest-rate regime, cost inflation, and potential credit provisions are eating into margins. Q1 will test whether this is structural or seasonal.
What the Street says
Since last quarter: filings & risk flags
Jul 24–23, 2026
Govt Nominee Director Appointed: Javvadi V.N. Subramanyam appointed to the Board. Routine governance update reflecting government ownership structure.
Routine
Jul 10, 2026
Gensol Fraud Declaration: IREDA declared the accounts of Gensol Engineering Ltd and subsidiary Gensol EV Lease Ltd as fraud. Reported to RBI.
<strong>HIGH RISK</strong>
Jun 25, 2026
Trading window closed from July 1 until 48 hours post-results announcement. Standard regulation; implies board approval Aug 3 as intimated.
Routine
The setup
IREDA is a bellwether for India's green-energy financing machine. FY26 proved the business model works: 23% revenue growth, 22% loan book expansion, and solid disbursement momentum. Q4 FY26 profit weakness and the Gensol fraud shadow the picture. On Aug 3, the Board will approve Q1 FY27 results. Investors will parse three things: (1) interest income growth—hold above 20% YoY for confidence; (2) loan book trajectory—any slowdown below 5% QoQ or 20% YoY is a red flag; (3) Gensol exposure and provisioning—a silent killer if material. The stock is oversold technically (RSI 24.5) and trades 24% below ATH, but valuation won't rerate without proof that margins are stabilising. Result day will answer that.
Three things to watch on Aug 3: (1) Interest income growth rate—if it stays 23%+ YoY, loan book momentum is intact and the business is on track; (2) Net profit margin—did Q4's 15.8% QoQ dip reverse, or does it signal structural pressure?; (3) Gensol provision and NPA detail—if material exposure emerges, expect a sharp re-rating lower despite the oversold technicals.