The Indian Renewable Energy Development Agency (IREDA), a Government of India enterprise under the Ministry of New and Renewable Energy (MNRE), has set its sights on ambitious financial growth for the upcoming fiscal year. In its latest exchange filing, the agency announced that it is aiming for a 21 percent revenue growth in FY 2025–26, with a target of ₹8,200 crore in revenue from operations.
This announcement comes on the back of IREDA’s strong performance in FY 2024–25, where it not only met but also exceeded its operational revenue target. The agency achieved ₹6,743.32 crore in revenue, surpassing the expected ₹5,957 crore by a significant margin.
Strong Performance in FY25
For the financial year ending March 2025, IREDA demonstrated robust financial management and operational excellence. The revenue figures highlight not just a steady business model but also the rising demand for renewable energy financing in India.
India’s transition towards green energy has opened up multiple opportunities for public and private players. As a nodal financing institution for renewable projects, IREDA’s performance is often seen as a barometer of the sector’s health.
The ₹6,743.32 crore revenue in FY25 reflects:
- Growing investments in solar and wind projects
- Increased financial assistance to renewable developers
- Strong project pipeline supported by government policies
MoU with MNRE: A Strategic Roadmap
IREDA’s optimism about FY26 is further supported by the recent performance-based Memorandum of Understanding (MoU) it signed with the Ministry of New and Renewable Energy (MNRE).
The MoU was signed by Santosh Kumar Sarangi, Secretary, MNRE, and Pradip Kumar Das, Chairman and Managing Director (CMD) of IREDA, in the presence of senior officials from both organizations.
The government has formally set a target of ₹8,200 crore revenue from operations for FY26, reflecting its confidence in IREDA’s ability to fuel India’s clean energy transition.
Key Performance Indicators in the MoU
The agreement is not limited to financial goals alone. It outlines comprehensive performance parameters that focus on efficiency, profitability, and risk management. These include:
- Return on Net Worth (RoNW) – Ensuring financial strength for future expansions.
- Return on Capital Employed (RoCE) – A metric that measures how effectively capital is being used.
- NPA to Total Loans Ratio – Highlighting the importance of maintaining healthy loan books and minimizing defaults.
- Asset Turnover Ratio – Reflecting operational efficiency and utilization of resources.
By setting these parameters, the MNRE has ensured that IREDA’s growth remains sustainable, responsible, and in line with financial prudence.
CMD’s Vision for the Future
Speaking about the growth roadmap, Pradip Kumar Das, CMD of IREDA, expressed optimism about the company’s performance.
“With the hope for continuing excellent performance this year as well, we are committed to sustaining our track record of excellence. The renewable energy sector in India has immense opportunities, and IREDA will continue to play a leading role in financing clean energy projects,” Das stated.
His remarks reflect the agency’s proactive approach in supporting India’s ambitious target of 500 GW of renewable energy capacity by 2030.
Why This Growth Matters
IREDA’s growth projection is not just about financial performance—it has broader implications for India’s clean energy journey.
- Boost to Renewable Energy Developers
More funding availability will directly benefit solar, wind, hydro, and bioenergy projects. - Contribution to India’s Green Goals
India is targeting net zero emissions by 2070. Agencies like IREDA are crucial in mobilizing the financial resources needed to get there. - Investor Confidence
Exceeding revenue targets in FY25 and setting ambitious yet achievable goals for FY26 sends a strong message to investors and stakeholders. - Job Creation and Infrastructure Growth
Financing renewable projects translates into more projects being commissioned, which generates employment and boosts local economies.
Market Outlook
With the renewable energy sector witnessing policy stability and strong investor sentiment, IREDA is expected to maintain momentum. India’s renewable energy investments are projected to cross $15 billion annually in the next few years.
The agency’s plan to grow revenue by 21% in FY26 aligns well with this broader trend. Industry analysts believe that IREDA will not only achieve but possibly exceed its set targets, given its past performance and robust project pipeline.
Financial Highlights – IREDA at a Glance
| Financial Year | Target Revenue (₹ crore) | Achieved Revenue (₹ crore) | Growth % |
|---|---|---|---|
| FY 2024–25 | 5,957 | 6,743.32 | +13% |
| FY 2025–26 (Target) | 8,200 | To be achieved | +21% (est.) |
Future Path
Looking ahead, IREDA is expected to:
- Expand funding support to green hydrogen projects.
- Provide more financial backing for rooftop solar and decentralized renewable systems.
- Explore international financing partnerships to attract global investors.
These initiatives will further cement IREDA’s role as a backbone of India’s renewable financing ecosystem.
The Indian Renewable Energy Development Agency’s announcement of a 21% growth target in FY26 underscores both its confidence and the opportunities in India’s renewable energy landscape. Having already outperformed in FY25, the agency is well-positioned to achieve greater milestones.
With strong government backing, a clearly defined performance roadmap, and an expanding renewable energy market, IREDA’s role in the coming years will be pivotal in shaping India’s sustainable future.
Disclaimer: This article is based on official exchange filings and press information available in the public domain. The financial projections and analysis are intended for informational purposes only and should not be considered as investment advice.
