Indian Renewable Energy Development Agency has signed a performance-based memorandum of understanding with the Ministry of New and Renewable Energy, setting a revenue target of ₹8,200 crore ($984 million) for the 2025-26 financial year, the company said on Monday.

The pact was signed between MNRE Secretary Santosh Kumar Sarangi and IREDA Chairman and Managing Director Pradip Kumar Das at the ministry’s headquarters in New Delhi.

Revenue Targets and Financial Track Record

The government-set target for revenue from operations marks a 22 percent increase from the ₹6,743.32 crore the state-run lender achieved in 2024-25, which was above its assigned target of ₹5,957 crore.

The MoU also outlines performance parameters including return on net worth, return on capital employed, non-performing assets to total loans, asset turnover ratio, and earnings before tax, depreciation and amortization.

Das said the company aims to sustain its growth trajectory, highlighting IREDA’s record of securing “excellent” ratings in performance evaluations for four straight years.

For 2023-24, IREDA was ranked the top performer in the non-banking financial company and power sector category, and among the top four central public sector enterprises across industries, according to the Department of Public Enterprises.

Loan Growth and Green Financing

At its annual general meeting on Aug. 8, IREDA reported cumulative loan sanctions of ₹2.49 trillion and disbursements of ₹1.63 trillion as of the June quarter of FY26.

The company’s loan book has grown at a 29 percent compound annual rate since FY21, reaching ₹79,941 crore in the first quarter. Operating profit rose 49 percent year-on-year during the same period, Das told shareholders.

IREDA has been accorded Infrastructure Finance Company status and benefits from Section 54EC tax exemptions on its bonds, positioning it for stronger investor engagement and lower-cost funding.

Expanding Into New Sectors

The state-run financier, which has traditionally funded solar, wind, hydro, biomass and cogeneration projects, is now expanding into emerging areas such as green hydrogen, e-mobility and ethanol.

Das also stressed the importance of digitization, automation and data analytics to boost efficiency and improve ease of doing business.

“IREDA has been instrumental in enabling the renewable energy transition and remains committed to building a green and self-reliant India,” Das said.

Also Read:

IREDA Raises $240M Through QIP to Fund Renewable Energy Projects