The management is pleased to present an overview of the industry landscape with a review of the Companys performance for the financial year 2025-26 (FY 26).
1. GLOBAL BUSINESS OUTLOOK AND RENEWABLE ENERGY (RE) MARKET
Global Economic Outlook
Global economic activity in FY 26 remained resilient but uneven. Growth was supported by easing monetary conditions in several major economies and continued momentum in emerging markets, even as trade fragmentation, geopolitical tensions and financial- market volatility remained key risks.
The IMFs latest outlook projects global GDP growth at 3.1% in 2026 and 3.2% in 2027, a moderation from the 3.4% growth estimated for 2025, reflecting the impact of Middle East conflict and trade policy uncertainty.
Global headline inflation is expected to temporarily rise from 4.1% in 2025 to 4.4% in 2026, before easing to 3.7% in 2027, reflecting higher energy and food prices on account of higher geopolitical disruptions.
After the sharp tightening cycle of 2022-23, policy rates across major economies have generally moved lower or stayed on hold at reduced levels as inflation eased. This is improving financing conditions for capital-intensive infrastructure, although rates remain above pre-pandemic norms in many markets.
Overview of Global RE Market
Increasing investments in RE and Low-Carbon Energy Transition
In 2025, global investment in the low-carbon energy transition reached a record US$2.3 trillion, an 8% year- on-year increase, with electrified transport, renewable energy and power grids attracting the bulk of capital. Climate-tech equity funding rebounded sharply with 53% increase, reversing three consecutive years of decline, while debt-issuance for energy transition projects scaled a new high of USD 1.2 trillion. The simultaneous improvement across these indicators, despite trade disruptions and elevated geopolitical tensions, reaffirms the structural resilience of the global energy transition.
Renewable energy investment alone remained elevated at approximately US$690 billion in 2025, led by Solar. Despite still-tight financing conditions in parts of the world, capital continued to flow into utility-scale solar, wind, storage and grid infrastructure, underscoring the structural shift toward clean-energy investment.
Global Capacity Addition in Renewables
Renewable power capacity increased by 692 GW (+15.5%) in 2025. Approximately three-quarters of the capacity expansion was in the form of solar energy, which increased by 511 GW (+27.2%); this was followed by wind energy, with additions of 159 GW (+14.0%). Renewable hydropower capacity increased by 18.4 GW (+1.4%); bioenergy by 3.4 GW (+2.3%); and geothermal energy by 0.3 GW (+1.7%).
Solar and wind energy continued to dominate renewable capacity expansion in 2025, jointly accounting for 96.8% of all net renewable additions. 2025 marks the highest annual increase in renewable generation capacity to date and the highest growth on record in percentage terms.
Even though 2025 marks the largest increase in renewable energy capacity and growth, significant disparities exist amongst countries and regions. Asia accounted for the majority of new capacity in 2025 (74.2%), increasing its renewable capacity by 513.3 GW to reach 2 891 GW (56.1% of the global total). The majority of this increase occurred in China (+440.1 GW). Europes capacity expanded by 76.8 GW (+9.0%) in 2025, with Germany contributing significantly to this growth, adding more than 20.5 GW. Ukraine experienced a notable capacity decline of more than 7.5 GW in 2024, and no change was recorded in 2025.
Meanwhile, capacity in North America expanded by 42.1 GW (+7.4%), driven by installations in the United States. Africa experienced its largest growth on record, with 11.3 GW of additions (+15.9%), driven primarily by Ethiopia, South Africa and Egypt. Oceanias installed capacity increased by 6.1 GW (+8.6%), largely due to additions in Australia; and Central America and the Caribbean expanded capacity by 9.1% (+1.8 GW), the largest growth since 2016. The Middle East recorded its largest growth rate, at 28.9% (+12.7 GW) in 2025, with Saudi Arabia accounting for the majority of this expansion.
The share of renewables in total capacity expansion in 2025 was 85.6%, down from 92.0% in 2024. However, the renewable share of total installed power capacity rose by more than three percentage points from 46.3% in 2024 to 49.4% in 2025, confirming that renewable deployment continues to outpace non-renewable growth.
Against this backdrop of strong renewable energy momentum, achieving the COP28 commitment to triple global installed RE capacity to over 1 1,000 GW by 2030 will require substantial acceleration in the deployment and larger financing requirement over the remainder of the decade, reinforcing the long-term opportunities available for renewable energy financiers.
2. INDIA BUSINESS OUTLOOK AND RENEWABLE ENERGY MARKET
India Economic Outlook
Indias macroeconomic outlook through FY 25-26 remained robust. According to the First Advance Estimates released by the National Statistics Office (NSO), MoSPI, real GDP growth for FY 25-26 was initially estimated at 7.4%, with real GDP at constant prices projected to attain INR 201.90 Lakh Crore, against the Provisional Estimates of INR 187.97 Lakh Crore for FY 24-25. Subsequently, following the base year revision to 2022-23, NSOs Second Advance Estimates revised the full-year real GDP growth upward to 7.6% (compared to 7.1% recorded in FY 24-25) with nominal GDP estimated to grow at 8.6%. This upgrade reflects both improved data capture and a strong underlying growth trajectory. The secondary and tertiary sectors recorded growth rates exceeding 9.0% in FY 25-26, while the manufacturing sector achieved double-digit growth, emerging as a key contributor to the economys resilient performance.
The inflation story of FY 25-26 was remarkable in its trajectory. Headline CPI inflation declined for nine consecutive months, touching an eight-year low of 1.6% in July 2025, before edging up slightly to 2.1% in August, remaining well within the RBIs tolerance band. The steep, prolonged nine-month decline in food prices of 10.5%, the longest in the CPI series, was the primary driver of this moderation. By December 2025, the RBI revised its full-year CPI inflation forecast sharply downward to 2.6% for FY 25-26, reflecting a faster-than- anticipated correction in food prices contrary to the usual seasonal trend.
Against this backdrop of benign inflation, the RBI pursued a measured but decisive easing cycle. Over the course of FY 25-26, the RBI cut the repo rate four times: in February 2025 (from 6.50% to 6.25%), April 2025 (to 6.00%), June 2025 (a larger 50 bps cut to 5.50%), and December 2025 (to 5.25%), amounting to a cumulative reduction of 125 basis points over the year. In its February 2026 review, the first MPC meeting of the new calendar year, the RBI maintained the repo rate unchanged at 5.25%, reflecting confidence in the improving growth and inflation outlook while pausing to assess transmission of earlier cuts.
RBIs evolving policy stance through the year, transitioning from neutral to accommodative, and back to neutral, reflects its calibrated approach of supporting growth while remaining anchored to the 4% CPI medium-term target. By February 2026, the RBI raised its GDP growth forecast for FY 25-26 to 7.4% and projected inflation for the year at 2.1%, with both headline and core inflation expected to be at or below the 4% target in the first half of FY 26-27.
Fiscal policy in FY 25-26 remained anchored to the twin objectives of growth-supportive investment and prudent consolidation. The Union Budget for FY 25-26 earmarked capital expenditure of I NR 11.21 Lakh Crore, representing 3.1% of GDP, with the fiscal deficit estimated at 4.4% of GDP. The fiscal consolidation goal set in FY 202122, of reaching a 4.5% fiscal deficit by FY 25-26, was successfully achieved, with the revised estimate for FY 25-26 coming in at 4.4%, balancing higher public capex with fiscal prudence.
For FY 26-27, the Finance Minister proposed increasing public capex to INR 12.2 Lakh Crore - an 11.5% increase over FY 25-26 - while targeting a further reduction in the fiscal deficit to 4.3% of GDP. The government has also transitioned from a fiscal deficit targeting framework to a Debt-to-GDP framework, aiming to achieve a central government debt-to-GDP ratio of 50% (?1%) by March 2031. This structural shift in Indias fiscal anchor signals a longer-horizon commitment to macroeconomic stability and investor confidence.
Overview of Indian Renewable Energy Market & Development
As of 31.03.2026, Indias total installed renewable energy capacity, including large hydro, has reached
—275 GW, reflecting an impressive —25% year on year growth.
While these gains are impressive, the pace of expansion must continue to accelerate, as the government has set a target to achieve 500 GW of non-fossil capacity by 2030. Achieving this scale of expansion is estimated to require an investment, necessitating the mobilization of both public and private finance.
| Generation Source | All values in GW | ||||||
| As on 31.03.2022 | As on 31.03.2023 | As on 31.03.2024 | As on 31.03.2025 | As on 31.03.2026 | As on 31.03.2027e* | As on 31.03.2032e | |
| Solar Power | 53.9 | 66.7 | 81.8 | 105.6 | 150.3 | 185 | 364 |
| Wind Power | 40.3 | 42.6 | 45.8 | 50 | 56.1 | 73 | 122 |
| Small Hydro | 4.8 | 4.9 | 5 | 5.1 | 5.2 | 5.2 | 5.5 |
| Large Hydro | 46.7 | 46.8 | 46.9 | 47.7 | 51.4 | 52.4 | 62.2 |
| Biomass (incl. WTE) | 10.68 | 10.80 | 10.93 | 11.5 | 11.8 | 13 | 15.5 |
| Total | 156 | 172 | 190 | 220 | 275 | 329 | 569 |
Table 1 Cumulative installed RE capacity in India - actuals and projections [Source: CEA]
*e denotes estimate. Further, as per CEA National Electricity Plan (NEP) for the period 2022-32, NEP projects additional PSP of 7.4 GW (FY 27) and 26.7 GW (FY 32) under Renewables-based capacity.
Solar Power - Major Driver in RE Capacity Addition
Over the last decade, Solar power has been the primary driver of Indias renewable energy growth, now constituting nearly —55% of total RE capacity. Following the trend, approximately 44.6 GW of Solar PV was added in FY 2025-26, which constituted 80% of the capacity addition.
Policy and Regulatory Developments
Indias policy and regulatory environment remained highly supportive of the renewable energy sector in FY 25-26.
During the year, MNRE introduced new market instrument to stimulate clean energy demand —Pilot Scheme for Contracts for Difference (CfD) for 500 MW RE projects, a globally proven mechanism that guarantees stable revenues to developers while preserving competitive price discovery.
Further, MNRE issued National Policy on Geothermal Energy in September 2025, to accelerate the exploration, development and commercial utilization of geothermal energy in the Country, broadening the Countrys renewable mix and supporting Indias Net Zero 2070 commitment.
In parallel, on the recommendation of MNRE, MoP revised the Renewable Consumption Obligation (RCO) framework under the Energy Conservation Act, 2001 and as per the same, State-level RPO targets were
subsumed within the RCO framework, which eliminated dual obligations under the Electricity Act, 2003.
Separately, CERC issued guidelines for Virtual Power Purchase Agreements as Non-Transferable Specific Delivery (NTSD) Over-the-Counter (OTC) contracts for facilitating Renewable Consumption Obligation (RCO) compliance by the regulated entities. In addition, CERC issued the Terms and Conditions for the trading of Carbon Credit Certificates (CCCs) between Obligated and Non- Obligated Entities on Power Exchanges, operationalizing a key element of Indias Carbon Credit Trading Scheme (CCTS). The framework further deepens the market architecture for clean energy and creates an additional revenue stream for renewable energy projects through carbon-credit monetization.
From a financing perspective, capital availability for Indias energy transition continues to deepen through sovereign green bonds, public-sector lending commitments, multilateral support and growing interest from infrastructure funds, pension capital and strategic investors.
A key sector risk nevertheless remains transmission readiness and policy certainty around charges and waivers. The economics of interstate renewable trade, green hydrogen and storage-linked projects will continue to depend on timely grid augmentation and a stable regulatory regime.
3. SECTOR WISE OUTLOOK ON RENEWABLE AND NEW ENERGY LANDSCAPE IN INDIA
| Traditional and stabilized segments in clean energy | Emerging segments in green financing gaining momentum | New and evolving segment in clean energy landscape |
| - Ground mounted Solar & Infra | - RE manufacturing (solar PV manufacturing, WTG manufacturing, electrolyzer) | - Battery Storage projects |
| - Rooftop | - Pumped-hydro storage | |
| Solar - Floating solar | ||
| - Onshore wind | ||
| - Hybrid RE | ||
| — Small hydro | — EV fleets (4-wheeler, e-rickshaws, 2-wheelers etc.) | - EV and battery storage value-chain (including charging infra) |
| — Large hydro | — Battery and EV recycling | |
| — Biofuels (biogas, bioethanol) | — Green transmission corridors | — Green Hydrogen and derivatives such as ammonia |
| — Biomass and Cogeneration | - Microgrids | |
| — Waste to Energy | ||
| — Energy efficiency | — Smart Metering | — Offshore wind |
Table 2 Categorization of Renewable Energy Sectors
Key announcements for overall RE sector in India:
• The Union Budget 2026-27 increased the allocation to MNRE to INR 32,915 Crore from INR 26,549 Crore in the previous budget, with the largest allocations directed toward PM Surya Ghar, PM-KUSUM, solar, green hydrogen and grid-enabling infrastructure.
• The government has mandated that from 1st June 2026, all solar PV projects must source cells from ALMM List-II, extending domestic sourcing requirements beyond modules to cells and reinforcing the Make in India push.
• Further expanding upstream, ALMM List-III for solar ingots and wafers will come into effect from 1st June 2028, signalling a phased, end-to-end localization strategy to build a fully integrated domestic solar manufacturing ecosystem.
Traditional and Stabilized Segments in Clean Energy Solar Power
Indias solar energy sector sustained exceptionally strong expansion during FY 2025-26. As of 31st March 2026, the Countrys cumulative installed solar capacity had reached about 150.26 GW. During the year up to late March 2026, India added nearly ~44.6 GW of solar capacity, keeping solar by far the largest contributor to renewable-energy additions.
Rooftop and distributed solar also recorded robust momentum during FY 26, supported by PM Surya Ghar: Muft Bijli Yojana, State-level net-metering frameworks and improving consumer economics for self-generation. By April 2026, nearly 30 lakh rooftop systems had been installed under the scheme since its launch in February 2024, benefiting around 36.5 lakh households, with cumulative installed capacity of about 10.77 GW. In FY
2025-26 alone, approximately 8.7 GW of rooftop solar was added, comprising around 20% of the total solar capacity addition during the year.
Looking ahead, solar is expected to remain the backbone of Indias renewable build-out, supported by a strong utility-scale pipeline, increasing residential rooftop penetration and continued policy support for domestic manufacturing and grid integration.
Key Government policies driving growth:
• Auction pipeline - MNRE has issued Bidding Trajectory for power procurement bids of 50 GW per annum by REIAs till FY 2027-28
• Renewable Consumption Obligation (RCO) Trajectory notified till FY 2029-30, which also includes specified quantum of consumption from Decentralized Renewable Energy sources.
• PM-KUSUM Scheme - PM-KUSUM remains a key driver of decentralized solarization in agriculture through solar pumps, feeder solarization and small grid-connected projects. At the end of FY 2026, cumulative installations under the scheme had crossed 13 GW, while solar pump deployment and feeder-level implementation continued across multiple States. In FY 2026 alone, 7.6 GW solar capacity (~58% of the cumulative capacity) was added under PM KUSUM.
• PM Surya Ghar: Muft Bijli Yojana - With an outlay of INR 75,021 Crore, the scheme has emerged as the flagship programme for residential rooftop solar. The pace of household adoption during FY 2025-26 materially strengthened the outlook for distributed solar and consumer-led energy transition. In FY 2026 alone, 8.7 GW of rooftop solar was added, which comprised ~20% of the total solar capacity addition during the year.
Onshore Wind
Indias onshore wind sector accelerated further during FY 2025-26. The Country added about 6 GW of new wind capacity up to late March 2026, taking cumulative installed wind capacity to around 56.09 GW as of 31st March 2026.
Installations remained concentrated in wind-rich States such as Gujarat, Tamil Nadu, Karnataka and Rajasthan, while hybrid projects, firm and dispatchable renewable tenders and commercial-and-industrial procurement continued to support demand for new wind capacity.
Despite the recent improvement, annual wind additions will still need to rise meaningfully if India is to meet its longer-term clean-energy ambitions. This is keeping the policy focus on repowering of older sites, transmission readiness, improved auction design and faster land and evacuation clearances.
Key Government policies driving growth:
• Wind RPO Trajectory - The wind-specific Renewable Purchase Obligation continues to create medium-term demand visibility for new wind projects by requiring obligated entities to source a rising share of electricity from eligible wind capacity commissioned after March 2022.
• National Repowering & Life Extension Policy for Wind Power Projects - This policy provides a framework to repower ageing wind farms, especially low-capacity legacy installations, by replacing them with modern higher-capacity turbines and improving utilization of high-wind sites.
Hydro Power
Hydropower remains a crucial component of Indias clean-energy mix, providing peaking power, inertia and grid-balancing support in a system with rapidly increasing solar and wind penetration. As of 31st March 2026, Indias installed hydropower capacity stood at about 56.6 GW, including 51.41 GW of large hydro and 5.17 GW of small hydro. In FY 2026 alone, approximately 3.7 GW of new large hydro capacity commissioned- the strongest annual addition in over a decade.
The development pipeline remains substantial. Per CEAs basin-wise assessment as on 31st March 2026, around 13.1 GW of large-hydro capacity is currently under construction, a further 20.4 GW has been concurred by CEA and is awaiting construction, and approximately 17.7 GW is under survey and investigation. Future development is significantly concentrated in the Brahmaputra basin, which accounts for the bulk of remaining identified potential, followed by projects in the Indus basin across Jammu & Kashmir and Himachal Pradesh.
Key Government policies driving growth:
• Budgetary Support Outlay - The modified budgetary support outlay of INR 12,461 Crore through FY 2031-32 for enabling infrastructure for Hydroelectric Projects supports 31 GW of hydroelectric capacity, addressing inherent challenges of remote and hilly terrain and limited access infrastructure.
• Hydropower Purchase Obligation (HPO) - The hydro-specific obligation continues to support offtake from eligible large-hydropower projects commissioned after 2019 and helps embed hydro within Indias clean-energy compliance framework.
• Renewable Energy Classification for Large Hydro - Large hydropower continues to retain renewable- energy classification, enabling it to contribute toward renewable targets and benefit from supportive measures such as tariff rationalization and budgetary support for enabling infrastructure.
Bio Energy
As of 31st March 2026, Indias installed bioenergy-based power capacity stood at about 11.75 GW. The sector continues to be anchored by bagasse cogeneration, biomass-based generation and waste-to-energy projects, while also benefiting from policy convergence across agriculture, urban waste management and clean fuels.
Beyond power generation, bioenergy is also expanding across clean fuel applications such as bio-ethanol and compressed biogas (CBG). Indias bio-ethanol nameplate capacity reached 1,810 Crore litres by the end of ESY 2024-25 (1st November 2024 to 31st October 2025), with an additional 195 Crore litres added during the year. In parallel, as of early 2026, India has 132 operational CBG plants with a total installed capacity of approximately 920 TPD, reflecting growing momentum in waste-to-fuel and circular economy initiatives. Bioenergy retains strategic importance because it offers dispatchable power and productive use of agricultural and urban waste streams. The sector is also supported by parallel policy efforts around ethanol blending, compressed biogas, SATAT and biomass co-firing in thermal plants.
Key Government policies driving growth:
• National Bioenergy Programme - The programme continued to provide umbrella support for biomass, biogas and waste-to-energy projects during FY 2025-26 through a consolidated policy and incentive framework.
o Programme on Energy from Urban, Industrial and Agricultural Wastes/Residues.
o Scheme to Support Promotion of Manufacturing of Briquettes and Pellets and Biomass (non-bagasse) based cogeneration in industries; and
o Biogas programme.
• Ethanol Blending & Biofuel Policy - Indias push toward higher ethanol blending and broader biofuel deployment continues to strengthen the biomass economy, improve farmer monetization and support decarbonization of transport fuels.
• SATAT and Biogas Initiatives - The SATAT programme and related compressed-biogas initiatives continue to expand CBG capacity through assured offtake arrangements and support for converting agricultural and organic waste into transport fuel and organic manure.
• Biomass Co-firing in Coal Plants - Biomass cofiring remains an important measure to reduce stubble burning, create demand for agri-residue pellets and lower the emissions intensity of coal- based generation. The notified trajectory now provides for 5% co-firing from FY 2024-25 and 7% from FY 2025-26.
With more thermal plants adopting co-firing and supply chains for pellets gradually improving, biomass utilization is expected to become a more meaningful complementary revenue stream for the wider bioenergy ecosystem.
Emerging segments in green financing gaining momentum
Solar PV Module and Cell Manufacturing capacity
MNRE is implementing the Production Linked Incentive (PLI) scheme for High Efficiency Solar PV Modules with an outlay of 24,000 Crore across two tranches. Under the scheme, around 30 GW of solar module around 10.5 GW of solar cell manufacturing capacity and around 2 GW of ingot-wafer manufacturing capacity has been setup upto date, anchoring private-sector investment across the broader manufacturing ecosystem.
Reflecting the combined effect of PLI, ALMM listing requirements and custom duties, ALMM-listed solar module manufacturing capacity has scaled over twentyfold since the frameworks introduction, growing from 8.2 GW in 2021 to approximately 172 GW per annum as on 31st March 2026. FY 2025-26 alone contributed 98 GW of this addition, marking the steepest single-year expansion to date. Solar cell manufacturing capacity enlisted under ALMM has reached 27 GW, signalling progressive deepening of domestic value addition across the value chain.
Key Government policies driving growth:
• Production-Linked Incentive (PLI) Programme
- Across multiple tranches, the PLI scheme for high-efficiency solar PV modules remains the anchor policy for creating integrated domestic manufacturing capacity.
• Customs Duties and Import Substitution Measures
- Basic customs duties and phased localization measures continue to improve the competitiveness of domestic manufacturing relative to imports and encourage upstream investments.
• Approved List of Models & Manufacturers (ALMM)
- The broadening of ALMM requirements, including the extension of domestic-listing requirements to solar PV cells, is expected to deepen domestic value addition and support the Make in India agenda.
Electric Vehicles (EV)
Indias EV market maintained strong momentum in FY 2025-26, driven primarily by the two-wheeler and threewheeler segments, alongside continued policy support to strengthen domestic manufacturing.
Total EV sales crossed 21.36 lakh units under the PM E-DRIVE scheme as of 31st December 2025, reflecting sustained acceleration in electric mobility adoption across segments. Electric two-wheelers remained the largest contributor, with 10.42 lakh e-2Ws receiving incentives under the scheme, while electric two-wheeler sales in FY 2024-25 had already reached 11.49 lakh units, up from 9.48 lakh units in FY 2023-24. Complementing this demand growth, the PLI Scheme for Automobile and Auto Components, with a budgetary outlay of 25,938 Crore, is strengthening Indias EV manufacturing ecosystem by offering incentives of 13%-18% for EV and hydrogen fuel cell components. As of December 2025, the scheme had supported 13.61 lakh EV units, driven cumulative investments of 35,657 Crore, generated 48,974 jobs, and enhanced domestic value addition across the EV supply chain.
Looking ahead, policy support is increasingly shifting from near-term demand subsidies toward long-term ecosystem scale-up, localization, public transport electrification and charging-network development.
With FAME-II concluded, Indias e-mobility framework during FY 2025-26 has been shaped by successor programmes such as PM E-DRIVE and related transitional support measures that cover vehicle demand incentives, charging infrastructure and strategic manufacturing.
Key Government policies driving growth:
• PM E-DRIVE Initiative - Approved with an outlay of INR 10,900 Crore for the period up to 31st March 2026, the programme supports electric two- wheelers, three-wheelers, e-buses, ambulances and e-trucks while also funding charging infrastructure, including over 22,000 chargers for e-four-wheelers and 1,800 chargers for e-buses.
• Electric Mobility Promotion Programme / related transitional support - Interim and successor schemes have helped sustain market momentum after FAME-II, while state EV policies, GST support and localization-linked incentives continue to reinforce adoption.
Green Transmission
Indias transmission build-out has become central to the renewable-energy agenda. The National Electricity
Plan (Transmission) outlines the addition of about 1,91,474 circuit-km of transmission lines and 1,274 GVA of transformation capacity over 2022-23 to 2031-32 to support rapid growth in non-fossil generation.
Specific enabling projects are also advancing, including the transmission system for evacuation and grid integration of around 13 GW of renewable power from Ladakh, along with renewable-energy-zone evacuation systems, storage-linked transmission and network strengthening for emerging green-hydrogen clusters.
Green Energy Corridor networks across renewable- rich States are being strengthened to accommodate additional solar and wind capacity, making transmission investment one of the most critical enablers of the next phase of Indias energy transition.
Key Government policies driving growth:
• Green Energy Corridor (GEC) Programme - GEC Phase-I is nearing completion and GEC Phase-II continues to build intrastate evacuation systems across key renewable-energy States. Phase- II is designed to add about 10,750 circuit-km of transmission lines and 27,500 MVA of substation capacity, supporting integration of around 20 GW of renewable energy.
• Transmission Incentives for Renewables - Waivers of inter-state transmission charges for eligible renewable and offshore-wind projects continue to support project economics, while transmission policy for storage- and hydrogen-linked projects remains a key enabler for future investments.
• Grid Operations Reforms - Green open-access rules, scheduling reforms, digital dispatch capabilities and integrated planning for renewables, storage and hydrogen are helping create a more flexible and resilient green grid.
New and Evolving Segments
Energy Storage
Energy storage is emerging as a vital enabler of Indias clean-energy transition as renewable penetration rises. Battery Energy Storage Systems (BESS) and pumped storage projects are increasingly central to round-the- clock renewable supply, peak balancing and ancillary services.
Battery Energy Storage Systems (BESS)
FY 2025-26 saw continued progress in utility-scale BESS procurement by Central and State agencies. While operational capacity remains modest, the project pipeline is expanding rapidly, and declining battery costs are steadily improving the commercial viability of storage-linked renewable projects.
Reflecting this momentum, the Government has expanded support under the BESS viability-gap-funding framework from 4GWh to about 13.2 GWh while retaining the approved budget outlay of INR 3,760 Crore. The notified Energy Storage Obligation trajectory is also expected to create long-term structural demand for storage deployment.
Pumped Storage Projects (PSPs)
Indias operational PSP base remains limited, but development activity has accelerated materially as States and developers position pumped hydro as a long- duration storage solution.
Accordingly, policy and investment focus has shifted sharply toward Pumped Storage Projects (PSPs). In FY 2024-25, CEA concurred six (6) PSP DPRs aggregating about 7.5 GW during FY 2024-25 and three (3) PSP DPRs of about ~5 GW in FY 25-26.
Key Government policies driving growth:
• Viability Gap Funding (VGF) Scheme for BESS - The scheme has become the cornerstone of early- stage utility-scale battery deployment by helping bridge commercial viability gaps for storage-linked projects.
• Energy Storage Obligations (ESO) - The notified increase in storage-linked obligations for obligated entities is creating long-term structural demand for both batteries and pumped storage.
• Policy Incentives for PSPs - Streamlined approvals, enabling transmission treatment and the growing need for long-duration storage are improving the outlook for pumped-storage development.
Battery Manufacturing
India is laying the groundwork for a domestic storagecell and battery-manufacturing ecosystem that is critical for both EVs and stationary storage. While most cells are still imported, project development across the domestic battery value chain is accelerating.
The Government is supporting this transition through a mix of production incentives, customs rationalization, R&D support and State-level industrial incentives designed to localize cell manufacturing over time.
Key Government policies driving growth:
• National Programme on Advanced Chemistry Cell (ACC) Battery Storage - This flagship PLI scheme has an outlay of INR 18,100 Crore and targets 50 GWh of domestic cell capacity. Across two rounds, 40 GWh has been awarded to beneficiary firms, materially advancing Indias domestic cellmanufacturing pipeline.
• Beyond the PLI beneficiaries, at least 10 manufacturers have announced a cumulative capacity of 178 GWh in the Country over the next five years, as companies prepare for scale-up in both mobility and stationary-storage markets and investing across cells, packs, battery management systems and recycling.
• Supportive measures such as customs relief on selected inputs, R&D for next-generation chemistries and State-level incentives for gigafactory investments continue to strengthen the domestic manufacturing ecosystem.
Green Hydrogen and Electrolyzer Manufacturing
The National Green Hydrogen Mission, with its outlay of INR 19,744 Crore through FY 2029-30, achieved significant implementation milestones. 19 companies had been allocated a cumulative annual production capacity of 8.62 lakh tonnes of green hydrogen, and 15 firms had been awarded a 3,000 MW annual electrolyser manufacturing capacity. Further, under the incentive scheme for procurement of Green Hydrogen for refineries, 2 companies have been awarded a total capacity of 20,000 tonnes per annum. Moreover, prices were discovered by SECI for the production and supply of 7,24,000 tonnes per annum of Green Ammonia to 13 fertilizer units across India. The Missions geographic footprint was also expanded, with MNRE formally recognizing three major ports — Deendayal (Gujarat), V.O. Chidambaranar (Tamil Nadu), and Paradip (Odisha) — as Green Hydrogen Hubs, creating integrated coastal centres for production, consumption, and future export.
Key Government policies driving growth:
• The National Green Hydrogen Mission (NGHM) remains the overarching policy driver, with a total outlay of INR 19,744 Crore and the objective of making India a global hub for green hydrogen.
• Strategic Interventions for Green Hydrogen Transition (SIGHT) - a two-pronged production- linked incentive framework for domestic electrolyzer manufacturing and green-hydrogen production.
• Funding for pilot projects in sectors like steel, long-range transport, shipping and energy storage to demonstrate hydrogen use.
• Development of green hydrogen hubs, i.e., regions with clustered production and end-use.
• Support for enabling infrastructure and renewable- power access arrangements for hydrogen production.
• R&D and skill-building programmes.
In addition, measures relating to pilot projects, hubs, renewable-power connectivity and market development in sectors such as refining and fertilizers are laying the groundwork for scale-up of the green-hydrogen ecosystem.
Off-shore Wind
India remains in the early stages of offshore wind development, but policy momentum has strengthened materially. While no offshore wind farms have yet been commissioned, Gujarat and Tamil Nadu continue to anchor the first wave of project development, supported by Indias identified offshore wind potential of around 70 GW along these coasts and a long-term auction trajectory targeting 37 GW of offshore wind by 2030.
To catalyze the sector, the Government approved a INR 7,453 Crore viability-gap-funding package for the first 1 GW of offshore wind projects, along with support for port infrastructure. Early tender execution faced challenges during FY 2025-26, with two large-scale offshore wind tenders - 4 GW Tamil Nadu seabed lease tender and a 500 MW Gujarat ISTS-connected tender cancelled in FY 2026 - more than a year after their issuance - failed to attract sufficient developer interest, reflecting concerns around high capital cost, technical complexity and nascent market frameworks.
In response, fresh wind resource assessment studies are being conducted by NIWE. Nonetheless, enabling framework for offshore wind continues to be intact and is expected to build transmission, port, supply-chain and project-execution capabilities that will be important for scaling offshore wind over the medium term.
Key Government policies driving growth:
• Offshore Wind Energy Lease Rules (2023) - Under these rules, developers may secure seabed leases for up to 35 years, providing long-term certainty and investment confidence.
• Transmission Waivers and Open Access Incentives - To improve project economics, a 25-year waiver of inter-state transmission charges has been provided for eligible offshore-wind projects commissioned by December 2032, while open- access treatment continues to support market development.
• Viability Gap Funding (VGF) Scheme - The approved VGF package for the first offshore-wind projects is expected to improve project bankability and support creation of the initial ecosystem for offshore deployment.
• Global Collaborations - India continues to work with offshore-wind leaders such as Denmark and Germany to access technical expertise, de-risk early-stage development and strengthen domestic supply-chain and port capabilities.
Smart Metering
The Government of India is continuing to accelerate adoption of Advanced Metering Infrastructure (AMI) and smart meters as part of broader power-distribution reforms and digitalization.
Under RDSS and related programmes, smart metering is being implemented at scale through TOTEX / DBFOOT- style models, with private implementation partners responsible for supply, installation, operation and maintenance over the contract period. The Revamped Distribution Sector Scheme (RDSS) concluded its five- year cycle in FY 25-26 with measurable outcomes on grid modernization. As of end-April 2026, ~6.50 Crore smart meters had been installed under the scheme. Cumulatively, AT&C losses improved from 21.91% in FY 2021 to 15.04% in FY 2025 and the ACS-ARR gap narrowing to about 0.06/unit, reflecting the schemes impact on distribution efficiency.
Key Government policies driving growth:
• Revamped Distribution Sector Scheme (RDSS) - RDSS remains the flagship programme for smart metering and distribution reform. Under the scheme, AMI is being implemented in TOTEX mode, with the AMISP responsible for delivering meter- related data and services across the contract life cycle and enabling a stronger digital foundation for DISCOM reform.
4. FINANCIAL AND OPERATIONAL PERFORMANCE
? Key performance highlights
o Your Company has bolstered its net worth to 13,781.35 Crore in FY 26 and posted an all-time high PAT of 1,873.34 Crore. Capital adequacy for your Company is well in line with RBI regulations with CRAR at 20.59% vs. minimum permissible floor of 15%. In addition, augmentation in net worth will also allow your Company to boost its exposure limits which has the potential to enhance business.
o Debt equity ratio decreased to 5.65 in FY 26 as compared to 6.31 in FY 25 due to internal accretion and raising of funds via Qualified Institutional Placement (QIP) in FY 26.
o Return on net worth has decreased to 15.07% in FY 26 as compared to 17.44% in FY 25 mainly on account of the substantial increase in the Companys equity base following the QIP fund raise of 2,005.90 Crore. Although PAT increased during the year, the growth in net worth was proportionately higher, leading to a moderation in RoNW.
o Supported by a lower cost of borrowings (7.05% in FY 26 vs 7.61% in FY25), despite a marginal decline in yield on loan assets (9.54% in FY 26 versus 10.03% in FY25), the Company recorded an improvement of 7 basis points in its interest spread. Further, efficient deployment of funds and a favourable asset mix contributed to an increase in Net Interest Margin to 3.65% in FY 26 from 3.27% in FY 25.
Financial Performance (Standalone)
Total Income
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Interest Income | 8,179 | 6,575 |
| Fees and Commission Income | 59 | 96 |
| Net gain/(loss) on fair value changes on derivatives | 31 | 13 |
| Other Operating Income | 40 | 58 |
| Total Revenue from operations (I) | 8,309 | 6,742 |
| Other Income (II) | 29 | 12 |
| Total Income (I+II) | 8,338 | 6,754 |
Total income for FY 26 has grown by 23% as compared to FY 25 primarily driven by a substantial increase in interest income from loans. This growth is attributable to Companys highest-ever loan disbursements of 34,946 Crore during FY 26, resulting in an increase in the Loan Book from 76,282 Crore as on 31.03.2025 to r93,069 Crore by the end of FY 26.
Additionally, other income has risen by 142% over FY25, primarily on account of higher interest on the income-tax refund. Over the last five years, revenue from operations has registered a CAGR of 26%.
Net gain/(Loss) on Fair Value Changes on Derivatives
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Net gain/(loss) on financial instruments at fair value through statement of profit and loss other than trading portfolio | 31 | 13 |
The Company during FY 26 has experienced a change of 138% primarily on account of mark to market (MTM) valuation of the derivative instruments entered into to hedge foreign currency loans.
Finance Cost
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Finance Cost | 4,905 | 4,141 |
During FY 26, finance costs increased by 18% over FY 25, primarily driven by higher borrowings undertaken to meet the growing demand for lending operations. The increase was mainly in interest on debt securities, which rose by 25% and in interest on subordinated liabilities, which grew by 336% during the year. The rise in subordinated liabilities was primarily attributable to the full-year recognition of interest on Perpetual Debt Instruments (PDIs) of 1,247 Crore issued in March 2025, together with the part-year interest impact of a further PDI issuance of 453 Crore in Q1 FY 26. These instruments were issued to augment the Companys capital adequacy and to diversify its funding sources.
Net Translation/ Transaction Exchange Loss/(Gain)
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Net Translation/ Transaction exchange loss | 43 | 42 |
In FY 26, there has been an increase in translation/ transaction exchange losses. This rise was primarily on account of higher amortization of FCMITR. While exchange losses arising from foreign currency transactions and translations declined by 22% during FY 26, the increase in FCMITR amortization resulted in a marginal rise in the overall exchange loss.
Impairment on Financial Instruments
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Loans | 774 | 237 |
| Others: | ||
| - Trade Receivables | 3 | - |
Impairment on Financial Instruments has increased by 227 % during the year. ECL is calculated on the loan portfolio basis the prevailing status of the loan assets by an external agency in line with Ind AS 109 through the ECL methodology. An increase of 506 Crore is attributable to one of the borrower group - M/s Gensol
Engineering Limited (GEL) which has been downgraded to NPA in 25-26.
Employee Benefits Expenses
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Employee Benefits Expense | 105 | 81 |
Employee benefits expenses increased by 30% primarily attributable to the rise in employee strength, together with the normal dearness allowance (DA) revision, employee promotions and routine annual increments
Depreciation, Amortization & Impairment
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Depreciation, Amortization and Impairment Expense | 44 | 39 |
Depreciation, Amortization and Impairment Expense has increased marginally due to additions of tangible assets acquired by the Company during FY 26.
Other Expenses
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Other Expenses | 93 | 86 |
Other expenses have increased marginally and comprises of rent, taxes and energy cost, repairs and maintenance, communication cost, business promotion and legal and professional charges etc.
Financial Position (Standalone)
? Assets
Cash and Cash Equivalents
| Particulars | As on 31.03.2026 | As on 31.03.2025 |
| Cash and Cash Equivalents | 15 | 30 |
Cash and Cash Equivalents primarily consists of balance in deposit accounts with banks. The Company has made an effective utilization of funds available with the Company.
Loans
| Particulars | As on 31.03.2026 | As on 31.03.2025 |
| Loans (net) | 90,197 | 74,272 |
During FY 26, Companys loan portfolio grew by 21%, primarily driven by a substantial increase in disbursements. Total disbursements for FY 26 stood at 34,946 Crore as against 30,168 Crore in FY 25, marking it the highest annual disbursement in Companys history. This growth underscores Companys strong market presence and continued focus on expanding its lending operations towards financing support to promote renewable energy segment in the Country.
Investments
| Particulars | As on 31.03.2026 | As on 31.03.2025 |
| Investments | 910 | 626 |
Investments continued to witness strong growth by 45% during FY 26, primarily driven by higher investments in Government Securities. The increase reflects the Companys prudent liquidity management practices and its continued focus on maintaining an adequate stock of High-Quality Liquid Assets (HQLA) in line with the applicable regulatory requirements.
? Liabilities
Debt Securities
| Particulars | As on 31.03.2026 | As on 31.03.2025 |
| Debt Securities | 28,422 | 28,446 |
In FY 26, Debt Securities decreased marginally, mainly on account of bond redemptions aggregating 1,525 Crore exceeding fresh bond issuances of 1,500 Crore during FY 26.
Borrowings (Other than Debt Securities)
| Particulars | As on 31.03.2026 | As on 31.03.2025 |
| Borrowings (Other than Debt Securities) | 46,167 | 33,490 |
Borrowings (other than debt securities) registered a 38% increase in FY 26. This rise was primarily due to raising of term loans from banks and financial institutions net of scheduled repayments of existing loans.
Subordinated Liabilities
| Particulars | As on 31.03.2026 | As on 31.03.2025 |
| Subordinated Liabilities | 3,257 | 2,805 |
During FY 26, subordinated liabilities witnessed an increase of 16%. This growth was primarily attributable to issue of Perpetual Debt Instruments for 453 Crore, aimed at strengthening Companys capital base and supporting its long-term funding needs.
Equity
| Particulars | As on 31.03.2026 | As on 31.03.2025 |
| Equity Share Capital | 2,809 | 2,688 |
| Other Equity | 10,972 | 7,578 |
| Total | 13,781 | 10,266 |
During FY 26, the Companys total equity increased by 34%, primarily driven by the successful raising of 2,005.90 Crore through Qualified Institutional Placement (QIP) on 11.06.2025, which strengthened the Companys capital base and supported its future growth plans. Further, the Company recorded its highest-ever Profit After Tax (PAT) of 1,873 Crore in FY 26, compared to 1,699 Crore in FY 25, reflecting its strong financial performance, sustained business growth, and continued focus on operational efficiency.
Changes in Key Financial Ratios
| Particulars | Unit | As on / for the year ended 31.03.2026 | As on / for the year ended 31.03.2025 | Change |
| Debt Equity Ratio | times | 5.65 | 6.31 | -10.46% |
| Operating Margin Percent | % | 27.78 | 31.02 | -10.44% |
| Net Profit Margin Percent | % | 22.47 | 25.15 | -10.66% |
Debtor Turnover Ratio, Inventory Turnover Ratio, Interest Coverage Ratio and Current Ratio are not applicable on the Company.
Changes in Return on Net Worth
| Particulars | Unit | As on 31.03.2026 | As on 31.03.2025 | Change |
| Return on net worth | % | 15.07 | 17.44 | -13.59% |
Return on Net Worth (RoNW) decreased to 15.07% in FY 26 from 17.44% in FY 25, mainly on account of increase in the Companys equity base following the QIP of 2,005.90 Crore during the year. Although PAT has also increased during the year, the growth in net worth was proportionately higher, leading to a moderation in RoNW.
Financial Performance (Consolidated)
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Revenue from Operations | 8,310 | 6,743 |
| Profit Before Tax | 2,338 | 2,104 |
| Profit After Tax | 1,874 | 1,698 |
| Total Assets | 93,808 | 76,867 |
| Total Liabilities | 80,022 | 66,601 |
| Total Equity | 13,785 | 10,266 |
The Company has a wholly owned subsidiary operating in the IFSC at GIFT City, Gujarat. In accordance with the requirements of Ind AS 110 - Consolidated Financial Statements, the accompanying Consolidated Financial Statements comprise the financial statements of the Holding Company and its subsidiary, presented as a single economic entity.
Financial Performance (Subsidiary)
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
| Total Income | 1.41 | 0.91 |
| Profit Before Tax | 0.67 | (0.28) |
| Profit After Tax | 0.67 | (0.28) |
| Net Worth | 30.06 | 26.36 |
During FY 26, the subsidiary remained in a preparatory phase and did not carry out any major operational activities. Revenue during the year mainly consisted of application fees of 0.14 Crore and interest income of 1.26 Crore earned on short-term deposits. Total expenses incurred by the subsidiary stood at 0.74 Crore in FY 26, compared to 1.19 Crore in FY 25.
5. STRENGTHS, WEAKNESSES, OPPORTUNITIES
AND THREATS (SWOT)
Strengths
• Navratna CPSE status with green financing mandate, positioning the Company as Indias largest pure-play green energy financing NBFC and conferring greater operational and financial autonomy along with strategic agility.
• Demonstrated capital-raising capability, through INR 2,005.90 Crore QIP (June 2025), attracting marquee domestic and international investors.
• Best-in-class credit standing, with domestic AAA/Stable" ratings from multiple agencies and sovereign-equivalent "BBB/Stable" international rating from S&P Global Ratings Ltd.
• Scale and momentum in the loan book, with outstanding loan book of INR 93,069 Crore (+22% YOY as on 31.03.2026), record sanctions of INR 51,883 Crore and disbursements of INR 34,946 Crore (provisional).
• Pan-India diversified asset base, spread across 23 States and 4 UTs and across various renewable energy and emerging technologies such as Solar, Wind, Hydro, Biomass, Cogeneration, Waste to Energy, Ethanol, Transmission, Storage, Manufacturing, Green Hydrogen, Smart Meter, Energy Efficiency etc., mitigating geographical and technological concentration risk.
• Unmatched multilateral funding relationships, with robust and established partnerships in form of long-tenor lines of credit from the World Bank, ADB, AfD, KfW, JICA and EIB.
• Deep sectoral expertise and robust credit appraisal, with decades of RE-financing experience, supporting GNPA and NNPA at 3.75% and 1.68% respectively as on 31.12.2025.
• Full-spectrum product suite, in the form of long term project financing, refinancing, underwriting of debt/loan syndication, project-specific funding loan against securitization of cash flows, top-up loans, short-term loan assistance to Government entities, and foreign-currency denominated funding through GIFT City.
Weaknesses
• Restricted borrowing base, as an ND-SI NBFC, the Company is not permitted to accept retail deposits, constraining access to low-cost funds.
• Recurring capital-raise dependency, driven by the long-asset life of RE and new energy projects, requiring continuous market borrowings and periodic capital infusion to support growth and capital adequacy.
Opportunities
• Large financing requirement for Indias energy transition, with the 500 GW non-fossil capacity target by 2030 and 60% of non-fossil fuel-based installed capacity by 2035, implying ~ INR 33 trillion of investment over the next decade, which company is uniquely positioned to capitalize on this opportunity.
• Sustained 50 GW annual RE bidding, translating into multi-year sanction and disbursement visibility and refinancing opportunities for commissioned assets.
• Expansion of financing avenues through IFSC GIFT City subsidiary, enabling foreign-currency denominated fundraising and lending in the same currency to cater to funding requirements for international projects.
• Strong demand in emerging sectors, such as green hydrogen, battery storage, pumped storage, offshore wind, smart metering, transmission and distributed solar, backed by targeted policy support.
Threats, Risks and Concerns
• Loan book growth sensitive to policy and tender pipeline, as growth of RE sector is interlinked to supportive policies, auction pipelines, and regulatory incentives.
• Increasing competition for refinancing of commissioned assets, as Scheduled Commercial Banks and global infrastructure financiers with lower cost of funds or larger balance sheets may put pressure on NIM on the commissioned loan book.
• PPA counterparty stress, land approvals and transmission-readiness bottleneck, may translate into drawdown slippages, COD extensions and potential stress in under-construction loan book.
6. RISK MANAGEMENT FRAMEWORK
Your Company has established a Board-approved Risk Management Framework, which continues to be progressively strengthened in line with the evolving regulatory expectations applicable to Middle layer NBFCs and covers key financial and non-financial risk domains including credit, market, liquidity, operational, and emerging risks. The Board provides oversight over the Companys risk governance framework, while management is responsible for implementation through the Three Lines of Defence model.
The Risk Management Committee periodically reviews the Risk Appetite Framework (RAF), Internal Capital Adequacy Assessment Process (ICAAP), and stress testing framework, and monitors implementation of risk management initiatives. During the year, the Committee continued to focus on strengthening risk governance, monitoring implementation of risk frameworks, and enhancing risk-based decision support across the organisation.
Risk management capabilities, including ICAAP, stress testing, risk analytics and governance frameworks, continue to be strengthened through coordinated efforts of the respective functional departments under the oversight of the Risk Management Department.
The Internal Audit Department provides independent assurance over the adequacy and effectiveness of governance, risk management and internal control processes in accordance with applicable regulatory requirements.
7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company has adequate system of internal control systems commensurate with size, scale and complexity of its operations to ensure accurate and timely reporting of various transactions, efficiency of operations and compliance with applicable laws, regulations, guidelines and Companys policies.
Review of the Internal Financial Controls for ensuring accuracy and completeness of the accounting record, safeguarding of assets, the prevention and detection of frauds and errors and timely preparation of reliable financial information is conducted by an experienced firm of Chartered Accountants in close co-ordination with the Companys various departments.
The Internal Audit is carried out by Companys Internal Audit Department. The Audit Committee periodically reviews the significant findings of the audits, as prescribed by the Companies Act, 2013, SEBI (LODR) Regulations, 2015 and applicable RBI Guidelines. Further, the Company has implemented Board-approved Risk Based Internal Audit (RBIA) Policy in compliance with the RBI guidelines.
8. HUMAN RESOURCES/ INDUSTRIAL RELATIONS
Your Company remains committed to nurturing talent and sustaining a positive workplace culture that supports long-term growth and operational excellence. Human Resource practices during the year focused on merit-based recruitment, continuous learning and development, performance management, and fostering a culture of accountability and innovation. Industrial relations remained cordial and harmonious throughout the year. Various employee engagement and welfare initiatives were undertaken to enhance morale, productivity, and organizational commitment.
The total employee strength of your Company was 224 as on March 31, 2026 as against 166 as on March 31, 2025, excluding Board Level Executives. The strength of female employees is a crucial aspect of workforce diversity and gender equality and number of female staff as on 31.03.2026 was 52 i.e. 23.21% of total employee strength. The attrition rate of your Company was 1.54 %, excluding superannuation & death cases. The average age of the employees as on 31.03.2026 is —41.25 Years.
9. ENVIRONMENTAL PROTECTION AND CONSERVATION, TECHNOLOGY CONSERVATION AND FOREIGN EXCHANGE CONSERVATION
Your Company, as a key financial institution supporting Indias energy transition, has embedded environmental and social considerations across its financing lifecycle. It has adopted a comprehensive Environmental and Social Management System (ESMS) to identify, assess and mitigate, wherever applicable, the environmental and social risks associated with projects financed by it. As a listed entity, your Company reports its Environmental, Social and Governance disclosures in the Business
Responsibility and Sustainability Reporting format as part of its Annual Report. It has also adopted a comprehensive ESG Policy, available on its website at https://www.ireda.in/policy/esg.
The Environmental and Social Safeguards Unit (ESSU) oversees environmental and social safeguards across financed projects and ensures implementation of the ESMS. During FY 2025-26, environmental and social screening and categorization were undertaken for approximately 84 projects across various technologies. Regular engagement with national and international lenders also helps align the Companys practices with evolving safeguard requirements and supports borrowers in managing project-related environmental and social risks.
Technology conservation, in the context of your Company, is supported through continued digitization, process automation and greater use of technology- enabled appraisal, monitoring and reporting systems. These initiatives help improve operational efficiency, reduce paper-based processes and optimize the use of organizational resources.
Technology absorption, in the context of your Companys business, is advanced through the appraisal and financing of emerging and commercially scalable clean-energy solutions. During the year, your Company continued to deepen its institutional understanding of evolving technologies and business models across areas such as energy storage, green hydrogen and its derivatives, and other low-carbon solutions. As part of the appraisal process, factors such as technology maturity, implementation track record, sponsor capability, supply-chain dependencies, operating performance and offtake visibility are assessed, wherever relevant, to support responsible deployment of capital. Continued engagement with borrowers, technology providers, sector institutions and domestic and international lenders also supports knowledge development and the adoption of appropriate technical, environmental and risk-mitigation practices. The 50 MW solar power project established by your Company at Kasaragod, Kerala, further reflects its institutional commitment to the deployment of renewable-energy technologies and Indias Net Zero emission target.
During FY 2025-26, there were no foreign exchange earnings, while foreign exchange expense amounted to 226.46 Crore, primarily towards interest and commitment expenses. Your Company seeks to manage and conserve foreign exchange through disciplined planning and utilization of foreign-currency borrowings, periodic monitoring of currency and interest-rate exposures, and appropriate risk-mitigation measures in accordance with its approved treasury and risk- management framework. Foreign-currency funding proposals are evaluated on an all-in-cost basis, including interest, commitment charges and associated hedging costs, with a view to balancing access to diversified funding sources with protection against market volatility.
10. CORPORATE SOCIAL RESPONSIBILITY
Your Company is strongly committed to being a socially responsible agency that actively contributes to the society and nation to improve the quality of life. The Companys Corporate Social Responsibility (CSR) initiatives are deeply rooted in the principle of making a positive impact and aligning with the goals set by the Government of India and the Sustainable Development objectives. Through these initiatives, your Company aims to promote and will continue to facilitate enhancement of value creation in society through contribution in sustainable community and environmental projects in the field of healthcare, nutrition, renewable energy, energy efficiency, clean technologies etc. towards environmental and social development of the Country.
Additionally, your Company focuses on areas such as environmental protection, promotion of green and energy-efficient technologies, and development of underprivileged regions, as per the provisions of Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014.
During FY 26, your Company sanctioned a total amount of 32.57 Crore for a total of 34 projects under CSR funds for FY 26 (excluding administrative overheads for an amount of 0.03 Crore) and spent a total amount of 17.30 Crore in FY 26, including disbursements from unspent accounts for previous years and administrative expenses for FY 25.
Your Company already has a Corporate Social Responsibility (CSR) portal for enhancing transparency in receipt and disposal of CSR requests from various organizations and institutions and ensuring timely examination, sanction and disbursements of financial assistance for CSR proposals in line with the applicable government norms. As a socially responsible corporate, your Company is committed to expanding its CSR impact over the coming years and aims to play a larger role in the development of the Nation.
11. SEGMENT WISE - OR PRODUCT WISE PERFORMANCE
The Company operates in India hence it is considered to operate only in domestic segment. All operations of the Company are considered as single business segment therefore, the Company does not have any separate reportable segment.
CAUTIONARY STATEMENT
Statements in Management Discussion and Analysis describing the Companys objectives, projections, expectations, and estimates are based on the current business environment. Actual results could differ from those expressed or implied, based upon the future economic and other developments, both in India and abroad.
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