IREDA Q1 FY27 Results Analysis: PAT Jumps 37%, NNPA Drops 84 bps

Indian Renewable Energy Development Agency Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,248.39 Cr (+15.46% YoY) and PAT growth of +36.82% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

IREDA delivered strong Q1 results with PAT up 36.8% YoY, NII up 24.1%, and cost-to-income improving 3.8pp. Asset quality improved significantly with NNPA down 84 bps to 1.22%. However, credit costs remained elevated and GNPA ticked up sequentially. Governance concerns persist with an absent audit committee and CMD transition.

Key Investment Insights

Key Positives

• PAT grew 36.82% YoY to Rs.337.50 Cr.
• NII grew 24.07% YoY to Rs.856.76 Cr.
• Cost-to-income ratio improved 3.79pp to 15.76%.
• GNPA improved 37 bps YoY to 3.76% and NNPA improved 84 bps YoY to 1.22%.
• CRAR improved to 20.30% from 19.58% YoY, well above regulatory minimum.
• PPOP grew 24.6% YoY to Rs.831.26 Cr.

Risk Factors

• Impairment on financial instruments increased 15.42% YoY to Rs.418.54 Cr, reflecting elevated credit costs.
• GNPA ticked up sequentially from 3.49% in Q4FY26 to 3.76% in Q1FY27, indicating some slippage.
• Audit Committee non-existent since 28 March 2026 due to absence of Independent Directors.
• CMD superannuated, with temporary leadership uncertainty.
• Court-staged loans of Rs.394 Cr remain a contingent risk despite provisioning.