Shares of the Indian Renewable Energy Development Agency (IREDA) experienced a significant rally of 5% on April 15, 2025, ahead of its much-anticipated Q4 earnings announcement. This surge occurred despite a recent decline of 3% in the stock over the past five trading sessions. However, over the last month, shares have managed a modest gain of 10%. Despite this recent uptick, IREDA's stock has faced considerable pressure over a longer timeframe, with a notable 31% drop in the last six months and a 30% decline year-to-date. On a one-year basis, the stock has slipped by 3%.
IREDA, a government-owned non-banking financial institution focused on financing renewable energy projects, was set to announce its Q4 FY25 results later in the day. According to an exchange filing, the company stated, "...this is to inform you that meeting of the Board of Directors of Indian Renewable Energy Development Agency Limited (IREDA) will be held on Tuesday, April 15, 2025, inter-alia to consider and approve the audited Consolidated financial results of the Company for the quarter & year ended March 31, 2025."
For the fiscal year 2025, IREDA reported a remarkable 27% increase in loan sanctions, reaching ₹47,453 crore, while disbursements rose by 20% to ₹30,168 crore. The total loan book expanded by 28% year-on-year to ₹76,250 crore. In the previous quarter, IREDA had posted a net profit of ₹425 crore, compared to ₹387.75 crore in Q2 FY25, with earnings per share remaining steady at ₹1.58.
On the day of the earnings announcement, IREDA shares traded more than 44% below their 52-week high of ₹310, while remaining over 25% above their 52-week low of ₹137. Analysts were optimistic about the upcoming results, expecting strong performance metrics that would reflect the growing demand for renewable energy financing in India.
In addition to IREDA, ICICI Lombard General Insurance Company also announced its audited financial results for the quarter and financial year ending March 31, 2025. The company reported a substantial 30.7% increase in profit after tax (PAT), reaching ₹25.08 billion for FY25, compared to ₹19.19 billion in the previous fiscal year. The firm’s strong performance was attributed to improved profitability and a robust demand for its insurance products.
Meanwhile, Axis Bank revealed that its Board of Directors will convene on April 24, 2025, to deliberate on key strategic decisions, including the approval of audited financial results, dividend payouts, and potential fundraising initiatives. Shareholders are expected to closely monitor the bank’s performance metrics and management commentary on the economic outlook.
In the insurance sector, Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance, expressed optimism, stating, "We are pleased to announce that we have crossed ₹10,000 crore APE for the first time, marking a significant milestone in our growth journey. Notably, we have also provided insurance coverage to over 9 crore lives as of March 31, 2025." This achievement indicates the company's expanding reach and commitment to providing comprehensive insurance solutions.
In terms of retail performance, ICICI Prudential Life Insurance reported a 15% year-on-year increase in Annualized Premium Equivalent (APE) for FY25, reaching ₹10,407 crore. This growth was primarily driven by a remarkable 25.1% surge in the retail protection segment, which contributed ₹598 crore to the APE. The insurer’s Value of New Business (VNB) stood at ₹2,370 crore for FY25, up 6.4% from the previous year.
As the market reacted to these announcements, Indian equities rebounded sharply on April 15, 2025, recovering losses from prior trading sessions. All sectoral indices closed higher, with the market breadth showing an impressive 8:1 advance-decline ratio. Volatility decreased, as reflected by a 19% drop in the India VIX. Major players like Reliance, HDFC Bank, and ICICI Bank led the rally, while auto stocks surged between 5% to 7% amid expectations of a softer tariff stance from the government.
In the broader market context, India's Consumer Price Index (CPI) inflation eased to 3.34% in March, which was lower than the expected 3.59%. This decrease was largely driven by a notable softening in food prices. Core CPI inflation stood at 4.1%, matching expectations, while food inflation fell to 2.69% from 3.75% the previous month.
Looking ahead, IREDA's recent performance and the upcoming financial results have positioned it as a key player in the renewable energy financing landscape. As the company continues to expand its loan book and disbursements, it remains well-positioned to capitalize on the increasing demand for clean energy solutions in India. Investors and analysts alike are keenly observing IREDA's trajectory, anticipating further growth and potential new targets for FY26.
In conclusion, the financial results from IREDA and other major companies in the sector reflect a period of robust growth and optimism in the Indian market. With strong fundamentals and a commitment to renewable energy financing, IREDA is set to play a pivotal role in shaping the future of clean energy in the country.
