The state-run renewable energy financier had earlier released a business update, indicating strong growth momentum in Q1 of FY26. Loan sanctions during the April–June period rose 28.5% year-on-year to Rs 11,740 crore, while disbursements increased 31.1% to Rs 6,981 crore. The company’s loan book also expanded 26.5% year-on-year, reaching close to Rs 80,000 crore, up from Rs 63,207 crore in the year-ago quarter.
Investors will be closely tracking the full financial results for key metrics such as growth in assets under management (AUM), loan mix, and asset quality.
Centre grants tax exemption status to IREDA bonds
In a policy boost for the company, the Central Board of Direct Taxes (CBDT) has notified IREDA bonds as ‘long-term specified assets’ under Section 54EC of the Income-tax Act, 1961. The notification, effective from July 9, 2025, allows capital gains tax exemption for investments in IREDA bonds redeemable after five years.The proceeds from these bonds will be used exclusively to fund renewable energy projects that are capable of servicing debt through project revenues, without relying on state government guarantees. Investors can claim capital gains tax exemption of up to Rs 50 lakh in a financial year by investing in these instruments.
Welcoming the development, IREDA Chairman and Managing Director Pradip Kumar Das said, “This recognition by the Government reinforces IREDA’s pivotal role in accelerating renewable energy financing in the country. The tax-exempt status for our bonds will offer an attractive investment avenue while ensuring increased capital availability for green energy projects, contributing to India’s 500 GW non-fossil fuel capacity target by 2030.”
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The move is expected to lower IREDA’s cost of funds and attract wider participation from investors looking for tax-saving instruments, further strengthening the renewable energy financing ecosystem.
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