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IREDA delivered a mixed Q2FY27 performance

ICICIdirect Research 21 Oct 2026 DISCLAIMER

News: IREDA delivered a mixed Q2FY27 performance. NII grew 19% YoY (4% QoQ) to ₹891 crore, supported by balance sheet expansion. NIM improved to 3.83% (8 bps/11 bps QoQ/YoY), while cost of borrowings increased to 7.20% (vs 7.12% in Q1FY27). PAT grew 42% YoY and 29% QoQ to ₹437 crore owing to moderation in impairment provisioning. PCR improved 224 bps QoQ to 70.4%. However, pace of AUM growth remained slower at 15% YoY (3% QoQ) to ₹97,411 crore, while disbursement momentum continued to remain steady across renewable energy segments. 

View: Improvement in asset quality and moderation in provisioning supported earnings recovery in Q2FY27, while margins remained resilient. Healthy sanction pipeline provides visibility on deployment, though acceleration in loan growth remains key to earnings trajectory.

Impact: Neutral

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