IREDA Expands ₹79,941 Crore Loan Portfolio, Diversifies into Emerging Green Energy Sectors – EQ
In Short : IREDA’s loan book rose to ₹79,941 crore in Q1 FY26, marking a 29% CAGR since FY21. The lender has sanctioned ₹2.49 lakh crore and disbursed ₹1.63 lakh crore to renewable projects. Operating profit grew 49% YoY as IREDA expanded beyond solar and wind into green hydrogen, e-mobility, and ethanol sectors, reinforcing its clean energy leadership.
In Detail : The Indian Renewable Energy Development Agency (IREDA) has reported that its loan book reached ₹79,941 crore in the April–June quarter of FY26. This reflects a strong growth trajectory, with a compound annual growth rate of 29% since FY21, underscoring the company’s expanding role in financing India’s clean energy transition.
As of June 30, 2025, IREDA had sanctioned a total of ₹2.49 lakh crore in loans dedicated to renewable energy and energy efficiency projects. Out of this, disbursements stood at ₹1.63 lakh crore, indicating substantial on-ground deployment of funds to accelerate green power generation and infrastructure.
The company also achieved a 49% year-on-year increase in operating profit during the quarter, highlighting improved efficiency and robust revenue streams. This strong performance comes even as the renewable sector faces challenges such as fluctuating module prices and financing hurdles for emerging technologies.
IREDA’s portfolio covers a wide range of clean energy segments including solar, wind, hydro, biomass, and cogeneration. However, the agency is now placing greater emphasis on diversification, recognizing the importance of supporting newer industries that align with India’s evolving energy goals.
Among these emerging sectors, green hydrogen stands out as a strategic focus area, with the potential to play a key role in decarbonizing industries and heavy transport. IREDA’s financing initiatives are expected to help scale up projects in this nascent field.
E-mobility is another sector gaining attention, as the shift toward electric vehicles requires significant investment in charging infrastructure and battery technologies. IREDA’s participation aims to address these capital requirements and catalyze adoption across both public and private transport systems.
In addition, the agency has started extending support to ethanol projects, recognizing their potential in reducing fossil fuel imports and contributing to India’s biofuel blending targets. This expansion into alternative fuels further strengthens IREDA’s position as a comprehensive clean energy financier.
The CMD emphasized that this growth in the loan book and diversification of sectors reflects IREDA’s commitment to India’s 500 GW renewable energy target by 2030. The agency’s role is not just to fund projects but also to create a sustainable financing ecosystem that supports long-term green growth.
With consistent operational gains, a diversified lending portfolio, and a clear focus on emerging technologies, IREDA is positioning itself as a key driver in India’s clean energy landscape. The coming quarters will test how effectively it can balance rapid expansion with prudent risk management in a fast-changing energy market.
