Priyanka Tiwari
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Indian Renewable Energy Development Agency Limited (IREDA), a public sector NBFC under the Ministry of New and Renewable Energy (MNRE), has reported solid financial results for the first nine months of FY25. Established in 1987, IREDA plays a key role in promoting and financing renewable energy and energy efficiency projects across India.
For 9MFY25, the company's loan book expanded by approximately 36% year-on-year, reaching ₹68,960 crore. This growth was driven by a 41% increase in disbursements, totaling ₹17,236 crore compared to ₹12,220 crore in the same period of FY24.
PAT Rises 30.82%, Asset Quality Improves
The company’s Profit After Tax (PAT) jumped 30.82% YoY to ₹1,197 crore, up from ₹915 crore in 9MFY24. IREDA also reported an improvement in asset quality, with the Gross NPA ratio falling to 2.68%, down from 2.90% a year earlier.
Expanding Opportunities in India's Renewable Sector
India is aggressively moving toward clean energy, targeting 500 GW of non-fossil fuel capacity by 2030, of which 195 GW had been achieved by June 2024. This underlines the vast potential for expansion and the increasing demand for renewable energy financing, positioning IREDA as a key beneficiary.
Market Valuation and Technical Outlook
According to market data, IREDA’s stock is currently trading at a 1-year forward P/B of 3.4x, with a Return on Assets (ROA) of 2.4% and Return on Equity (RoE) of 20%. From a technical perspective, the stock has the potential to advance toward ₹155, which aligns with its 21-day moving average and a key historical support level.
If it sustains above the 21-DMA, the stock could further rally to the ₹178–₹182 range in upcoming sessions, offering traders and investors a positive near-term outlook.
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