Indian Renewable Q2 FY27 Results (NSE: IREDA)
Signal: Steady quarter
The read
The operating trajectory improved, with operating margin rising 617bps YoY to 30.30% and loan assets growing 15.34% to ₹97,328.87 crore, but earnings quality remains provision-sensitive: impairment rose 187.80% YoY to ₹186.81 crore and limited PAT growth to 0.96%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,344.75 Cr | 13.96% | 4.23% |
| Net profit | ₹554.26 Cr | 0.96% | |
| EPS | ₹1.97 | 0% | |
| EBIT margin | 0% |
P&L walk
Total income rose to ₹2,344.75 crore, but PAT increased only to ₹554.26 crore as impairment expense rose to ₹186.81 crore from ₹64.92 crore; operating margin expanded to 30.30% from 24.13%.
Key positives
- Loan assets grew 15.34% YoY to ₹97,328.87 crore, sustaining double-digit balance-sheet expansion.
- Operating margin increased to 30.30% from 24.13% YoY, a 617bps improvement.
- GNPA improved to 3.57% from approximately 3.98% YoY, while CRAR remained strong at 19.83%.
- Net interest income grew 15.09% YoY to ₹940.49 crore, ahead of total-income growth of 13.96%.
Key concerns
- PAT grew only 0.96% YoY to ₹554.26 crore because impairment expense increased 187.80% YoY to ₹186.81 crore.
- H1 operating cash flow remained negative at ₹2,732.22 crore despite H1 PAT of ₹891.75 crore.
- Cumulative impairment allowance increased 40.21% YoY to ₹3,293.28 crore, highlighting continued credit-cost sensitivity.
Research and educational content only. Not investment advice.