IREDA profit rises 37.12% YoY as quarterly margin drops 7.40 points
Sequential margin pressure came from expenses growing 57.30% and interest costs rising 8.09%, despite revenue growth of 3.41%.
Filed 03 Aug 2026, 20:05 IST · after market close · Indian Renewable Energy Development Agency Ltd (IREDA)
Key takeaways
- Consolidated net profit rose 37.12% year on year to Rs 338.53 cr, as revenue grew faster than expenses.
- Operating margin fell 7.40 percentage points sequentially to 78.41% after expenses grew 57.30% while revenue increased 3.41%.
- The 78.41% operating margin remained 15.40 percentage points above the 63.01% median for 45 Financial Services peers.
Price around the results
Year-on-year profit growth outpaced revenue
IREDA's consolidated net profit grew 37.12% year on year, ahead of 15.50% revenue growth. Expenses increased 13.79%, slower than revenue, helping operating profit rise 15.98%. Profit before tax grew 35.73%, while interest costs rose 10.10%.
Sequential margin contraction followed a sharp cost increase
Revenue increased 3.41% sequentially, but expenses rose 57.30%, so operating margin narrowed 7.40 percentage points. Interest costs also increased 8.09%, adding pressure below the operating line; the lower tax rate, down 2.25 percentage points, did not prevent net profit from falling 31.28%. Other income was only 0.27% of pre-tax profit, so reported earnings were not materially supported by that line.
Margin is above peers but has declined for two quarters
The 78.41% operating margin was 15.40 percentage points above the 63.01% median among 45 Financial Services peers that reported the quarter. However, margin has fallen from 93.29% in Q2FY26 to 91.59% in Q3FY26, 85.81% in Q4FY26 and 78.41% now, making this the second straight sequential decline. Year on year, the margin was still 0.32 percentage points higher.
Results were filed after market close; reaction history is evenly split
The consolidated results were filed after market close, so there is no reported market reaction yet. After the previous eight results, the stock rose four times and fell four times, with a median absolute move of 5.24%, indicating no consistent direction but sizeable typical reactions.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,249 cr | ₹2,175 cr | +3.41% | +15.50% |
| Other income | ₹1 cr | ₹6 cr | -80.94% | -90.75% |
| Expenses | ₹486 cr | ₹309 cr | +57.30% | +13.79% |
| Operating profit | ₹1,764 cr | ₹1,867 cr | -5.51% | +15.98% |
| Operating margin (%) | 78.41% | 85.81% | — | — |
| Interest | ₹1,341 cr | ₹1,241 cr | +8.09% | +10.10% |
| Depreciation | ₹10 cr | ₹13 cr | -20.73% | -0.20% |
| Profit before tax | ₹414 cr | ₹619 cr | -33.17% | +35.73% |
| Tax | ₹75 cr | ₹127 cr | -40.54% | +29.78% |
| Net profit | ₹339 cr | ₹493 cr | -31.28% | +37.12% |
| EPS (₹) | ₹1.21 | ₹1.76 | -31.25% | +32.97% |
Operating margin of 78.41% compares with a Financial Services sector median of 63.01% across 45 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 78.41% after two consecutive sequential declines.
- Whether expense growth moderates from 57.30% sequentially.
- Whether interest-cost growth slows from 8.09% sequentially.