Indian Renewable Energy Development Agency Ltd (IREDA), a Navratna CPSE has signed a performance-based Memorandum of Understanding (MoU) with Ministry of New and Renewable Energy (MNRE) for FY27.
MNRE Secretary Santosh Kumar Sarangi and IREDA Chairman and Managing Director Dr. Bijay Kumar Mohanty signed the agreement.
The MoU sets strategic performance targets for the year and comes after IREDA recorded strong growth in financing and profitability during FY26.
IREDA records strong FY26 performance
IREDA reported its highest-ever annual profit of ₹1,873 crore in FY26, up 10% from ₹1,699 crore in FY25. Total income from operations rose 23% to ₹8,337 crore from ₹6,755 crore, while the loan book expanded 22% to ₹93,069 crore.
Loan sanctions increased 9% to ₹51,883 crore, while disbursements rose 16% to ₹34,946 crore during FY26. Net worth increased 34% to ₹13,781 crore, while net non-performing assets improved to 1.29% from 1.35% in the previous year.
Fifth consecutive excellent rating
IREDA also secured an ‘Excellent’ rating for its MoU performance for FY25, with a score of 96.42 out of 100. This marked the fifth consecutive year in which the company received the ‘Excellent’ rating.
The company had exceeded its FY25 revenue-from-operations MoU target of ₹5,957 crore by achieving ₹6,743 crore.
The FY26 MoU had subsequently set a revenue-from-operations target of ₹8,200 crore along with parameters covering return on net worth, return on capital employed, asset quality, asset turnover and EBITDA.
Focus on renewable energy financing
“With clear goals set for the year, our team will work hard like earlier years and contribute their best to achieve the ultimate goal of Viksit Bharat,” IREDA, Chairman and Managing Director, Bijay Kumar Mohanty, said.
The new MoU is expected to guide IREDA’s operational and financial priorities as it expands financing support for India’s renewable energy sector. The agency’s mandate covers financing for projects across areas including solar, wind, hydro, bioenergy and other renewable energy segments.
Company strengthens clean energy role
IREDA has established itself as a specialised financing institution for India’s renewable energy sector. Its expanding loan book and higher sanctions and disbursements reflect the growing demand for financing as the country accelerates its clean energy transition.
The company’s continued performance under the MoU framework is also expected to support its role in mobilising capital for renewable energy projects while maintaining financial discipline, asset quality and operational efficiency.