IREDA profit jumps sequentially, but margin remains below last year
Lower expenses lifted quarterly profit, while year-on-year earnings were held back by costs growing far faster than revenue.
Filed 19 Oct 2026, 19:29 IST · after market close · Indian Renewable Energy Development Agency Ltd (IREDA)
Key takeaways
- Consolidated net profit rose 63.11% sequentially to Rs 552.17 cr as expenses fell 47.52%.
- Year-on-year profit was almost flat at +0.52% because expenses grew 84.61%, faster than revenue at +14.03%.
- Operating margin recovered 10.73 percentage points sequentially to 89.14%, but remained 4.15 percentage points below Q2FY26.
Price around the results
Sequential profit recovery came from lower expenses
IREDA reported consolidated net profit growth of 63.11% sequentially, with revenue rising 4.29% while expenses fell 47.52%. That combination lifted operating profit 18.55% and profit before tax 70.27%. Other income contributed only 0.15% of pre-tax profit, so it did not materially flatter earnings quality.
Year-on-year costs erased most of the revenue gain
Revenue increased 14.03% year on year, but expenses rose 84.61%, causing operating margin to narrow 4.15 percentage points. Interest costs also grew 13.55%, broadly keeping pace with revenue, while the tax rate increased by 0.5 percentage points. As a result, profit before tax rose only 1.16% and net profit 0.52%.
Margin recovered from Q1FY27 but stayed below Q2FY26
The operating margin improved from 78.41% in Q1FY27 to 89.14% in Q2FY27, reversing the sequential pressure seen in the previous quarter. It was still below the 93.29% recorded in Q2FY26, so the year-on-year margin contraction remains the key comparison. IREDA's margin was 24.64 percentage points above the 64.5% median among 15 Financial Services peers that had reported.
No immediate market reaction was recorded
The results were filed after market close, so there was no reported market reaction yet. After its last eight results, the stock rose three times and fell five times, with a median absolute move of 5.24%, providing a mixed historical reaction pattern.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,346 cr | ₹2,249 cr | +4.29% | +14.03% |
| Other income | ₹1 cr | ₹1 cr | -8.85% | +80.70% |
| Expenses | ₹255 cr | ₹486 cr | -47.52% | +84.61% |
| Operating profit | ₹2,091 cr | ₹1,764 cr | +18.55% | +8.95% |
| Operating margin (%) | 89.14% | 78.41% | — | — |
| Interest | ₹1,377 cr | ₹1,341 cr | +2.68% | +13.55% |
| Depreciation | ₹10 cr | ₹10 cr | +3.52% | -1.44% |
| Profit before tax | ₹704 cr | ₹414 cr | +70.27% | +1.16% |
| Tax | ₹152 cr | ₹75 cr | +102.49% | +3.57% |
| Net profit | ₹552 cr | ₹339 cr | +63.11% | +0.52% |
| EPS (₹) | ₹1.97 | ₹1.21 | +62.81% | +0.00% |
Operating margin of 89.14% compares with a Financial Services sector median of 64.50% across 15 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 89.14% after the sequential recovery.
- Whether expenses remain below the Rs 254.85 cr reported for Q2FY27.
- Whether interest-cost growth stays near the 13.55% year-on-year rate.