IREDA Q2 FY27 Results Analysis: PAT Flat as Impairment Surges 167%, NNPA at Five-Quarter Low
IREDA's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,343.70 Cr (+13.94% YoY) and PAT growth of +0.96% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 19, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 2,343.70 Cr (+13.94% YoY) |
| PAT (Q2) | Rs. 554.26 Cr (+0.96% YoY) |
| EBITDA margin | 38.56% (+81 bps YoY) |
| EPS (Q2) | Rs. 1.97 (+0.00% YoY) |
| Market cap | Rs. 30,123.36 Cr |
| CMP | Rs. 106.54 |
Quarter Snapshot
IREDA grew revenue 13.94% YoY and operating profit 16.39% YoY, with operating margin at 38.56% (+81 bps YoY) and asset quality improving — GNPA at 3.57%, NNPA at a five-quarter low of 1.08%, and Stage III provision coverage at 70.44%. PAT was flat at 0.96% YoY as impairment rose 167% YoY, though it fell 55% QoQ to Rs.186.81 Cr. Governance remains an overhang with the Audit Committee unconstituted since March 2026, NSE/BSE fines, and an auditor emphasis of matter.
Key Investment Insights
Key Positives
- Loan book grew 14.57% YoY to Rs.93,961.30 Cr; NII grew 15.10% YoY to Rs.940.49 Cr
- Operating profit (PBT + depreciation + impairment) grew 16.39% YoY to Rs.903.65 Cr; operating margin expanded 81 bps YoY and 115 bps QoQ to 38.56%
- GNPA improved to 3.57% (from 3.76% QoQ and 3.97% YoY); NNPA at 1.08%, lowest in the five-quarter trend
- Provision coverage ratio on Stage III assets rose to 70.44% from 51.48% a year ago
- Operating opex grew only 4.64% YoY against revenue growth of 13.94%
- Impairment charge fell 55.37% QoQ to Rs.186.81 Cr from Rs.418.54 Cr in Q1FY27
- H1FY27 PAT of Rs.891.75 Cr grew 12.07% YoY; H1 operating profit grew 20.04% YoY
Risk Factors
- Impairment on financial instruments rose 167.18% YoY to Rs.186.81 Cr, holding PAT growth to 0.96% YoY against revenue growth of 13.94%
- Audit Committee not properly constituted since March 28, 2026; NSE and BSE each fined IREDA Rs.14,19,540 for board/committee composition breaches
- Rs.386.76 Cr of accounts classified as Stage II/Standard per interim High Court orders would be NPA per RBI prudential norms; interest on these accounts recognized on a collection basis
- CRAR declined 27 bps YoY to 19.83% while debt-equity ratio rose to 5.64x from 5.41x
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.