New Delhi, July 16 -- Indian Renewable Energy Development Agency Ltd's shares have declined about 6% since 10 July, when it reported a 36% year-on-year drop in its June quarter (Q1FY26) net profit to Rs.247 crore as provisions rose sharply.

The performance marks a reversal from Q4FY25, when profit grew 49%. Despite a benign interest rate environment, the state-owned non-banking finance company has an overhang of non-performing assets.

IREDA's Q1 interest income grew 29% to Rs.1,909 crore, while finance and other costs rose at a slower pace, leading to a 49% growth in operating profit. Net interest margin rose by 31 basis points (bps) year-on-year to 3.6%. However, a sharp rise in provisioning to Rs.363 crore, higher than FY25's Rs.237 c...