On April 1, 2025, the Indian Renewable Energy Development Agency Limited (IREDA) made headlines with its impressive financial results for the fiscal year ending March 31, 2025. The agency reported a significant 27% year-on-year increase in loan sanctions, totaling Rs 47,453 crore, up from Rs 37,354 crore in the previous year. This growth reflects IREDA's strong commitment to financing renewable energy projects in India, as it continues to play a vital role in the nation’s clean energy transition.
As of today, IREDA shares are trading at Rs 160.80, marking a slight increase of 0.13% from the opening price of Rs 160.40. The stock reached a high of Rs 161.85 during the trading session. However, it is noteworthy that the share prices have fallen to nearly 50% of their 52-week high, raising questions among investors about the stock's future trajectory.
In addition to the rise in loan sanctions, IREDA also reported a 20% increase in loan disbursements, which reached Rs 30,168 crore compared to Rs 25,089 crore in the previous fiscal year. The outstanding loan book surged by 28%, standing at Rs 76,250 crore as of March 31, 2025. This robust growth in financial performance underscores the ongoing demand for renewable energy financing and IREDA's pivotal role in supporting these initiatives.
Recently, IREDA secured a Facility Agreement with the State Bank of India’s Tokyo branch to raise 26 billion JPY (approximately Rs 1,600 crore) through External Commercial Borrowing (ECB). This funding includes a green shoe option of 10 billion JPY, significantly enhancing IREDA’s capacity to support India’s clean energy goals with competitive international funding. Pradip Kumar Das, Chairman and Managing Director of IREDA, stated, "This facility enables us to diversify our resource base and optimize costs, enhancing our lending operations to support India’s renewable energy sector. The transaction reflects the strong confidence of global investors in IREDA’s financial stability and growth potential."
Analysts have mixed opinions regarding IREDA's share target price. Some suggest it could reach between Rs 264.25 and Rs 485 by the end of 2025, while the consensus target price is estimated at Rs 208.67. Despite the fluctuations in share prices, many analysts recommend investing in IREDA, citing numerous opportunities ahead. According to data from Moneycontrol, 67% of analysts suggest buying IREDA shares, while 33% recommend selling.
In the backdrop of these developments, IREDA's stock has experienced a rally of nearly 12.5% over the past year. However, it is essential to note that the stock has declined by approximately 25% year-to-date. The average consensus price target implies an upside of 23%, indicating potential for recovery as market conditions evolve.
During the October-December quarter of FY25, IREDA's revenue from operations surged by 36% year-on-year, reaching Rs 1,698 crore, while net profit for the same period increased by 27% to Rs 426 crore. This financial growth demonstrates IREDA's effective management and operational efficiency, further solidifying its position in the renewable energy sector.
Looking ahead, IREDA's board of directors approved a borrowing program of up to Rs 30,800 crore for the financial year 2025-26. This program will include fundraising through various debt instruments, such as green taxable bonds and green masala bonds, to support the company's growth initiatives. Earlier this month, the board also enhanced the borrowing limit for FY25 by Rs 5,000 crore, raising it to Rs 29,200 crore from Rs 24,200 crore.
As the market resumes trading on April 1, participants are keenly watching IREDA among other stocks, given its pivotal role in promoting sustainable energy solutions in India. The company's commitment to financing renewable energy projects, including solar, wind, hydro, and biomass, positions it as a key player in the ongoing energy transition.
In summary, IREDA's strong financial performance, coupled with its strategic initiatives to raise funds and expand its loan book, reflects a promising outlook for the agency as it continues to support India's renewable energy ambitions. With a solid foundation and a commitment to innovation and accessibility in financing, IREDA is poised to navigate the challenges and opportunities in the evolving clean energy landscape.
