Indian Renewable Energy Development Agency Limited (IREDA) is a public sector enterprise under the Ministry of New and Renewable Energy (MNRE), Government of India. Established in 1987 and headquartered in New Delhi, IREDA is a non-banking financial company (NBFC) with “Navratna” status, focused on financing renewable energy and energy efficiency projects. It plays a pivotal role in India’s clean energy transition, offering financial products like loans, credit lines, and advisory services for solar, wind, hydro, biomass, and emerging technologies such as green hydrogen and electric vehicles. As of April 6, 2025, here’s an overview based on its latest performance.
Business Overview
IREDA’s operations center on:
- Renewable Energy Financing: Supports projects across solar, wind, hydro, biomass, ethanol, and waste-to-energy, with a loan book spanning traditional and emerging green technologies.
- Infrastructure Finance: Classified as an Infrastructure Finance Company by the RBI, it facilitates large-scale renewable energy projects and value chain activities like equipment manufacturing and transmission.
- Digital Initiatives: Integrates with platforms like ONDC and provides e-governance solutions, expanding its scope beyond traditional financing.
With a loan portfolio exceeding Rs 76,000 crore, IREDA is India’s largest pure-play green financing NBFC, benefiting from government backing and a strategic focus on India’s 500 GW renewable energy target by 2030.
Recent Financial Performance (Q3 FY25)
IREDA’s Q3 FY25 (October-December 2024) results, announced on January 9, 2025, highlight robust growth:
- Revenue: Rs 1,698.45 crore (operational), up 35.6% YoY from Rs 1,253.20 crore in Q3 FY24, driven by higher loan disbursements and interest income.
- Net Profit: Rs 425.38 crore, up 27% YoY from Rs 335.53 crore, reflecting operational efficiency despite rising expenses.
- Net Interest Income (NII): Rs 622.3 crore, up 39% YoY, with margins improving to 3.33% (from 3% in FY24).
- Loan Metrics: Loan sanctions surged 129% YoY to Rs 31,087 crore, disbursements rose 41% to Rs 17,236 crore, and the loan book grew 36% to Rs 69,000 crore (provisional, up from Rs 50,580 crore in Q3 FY24).
For FY25 (provisional, as of March 31, 2025):
- Loan sanctions reached Rs 47,453 crore (up 27% YoY), disbursements hit Rs 30,168 crore (up 20%), and the loan book expanded 28% to Rs 76,250 crore.
Stock Performance and Market Position
As of April 5, 2025:
- Share Price: Around Rs 156-160, down 3-4% on April 4 from Rs 161.42, per NSE/BSE data. It’s 55% off its all-time high of Rs 310 (July 2024), with a 52-week range of Rs 100-310.
- Market Cap: Approximately Rs 42,050 crore ($5 billion USD).
- Returns: Up 290% since its IPO (Rs 32, November 2023), but down 38% year-to-date in 2025 due to tariff fears and asset quality concerns.
Shareholding Pattern (as of December 31, 2024)
- Promoters: Government of India holds 75%.
- FIIs: ~15-18%, adjusted post-November 2024 OFS by NSE Investments.
- DIIs: ~5-7%.
- Public: ~22-25%.
Strategic Developments
- Fundraising: Raised Rs 910 crore via Tier-II bonds (March 2025) and secured a JPY 26 billion ECB facility from SBI Tokyo (March 2025). Plans a Rs 5,000 crore QIP approved in January 2025.
- Partnerships: Signed a 900 MW hydropower deal with SJVN, GMR, and Nepal Electricity Authority (January 2025).
- Asset Quality: Gross NPA at 2.19% (stable QoQ), Net NPA up to 1.04% from 0.95% (Q2 FY25), though down YoY from 1.65%.
Challenges and Outlook
IREDA faces headwinds from U.S. tariffs (25% on foreign imports, March 2025), impacting renewable component exports, and asset quality concerns (e.g., exposure to Gensol Engineering’s repayment delays). However, its strong loan growth, government support, and focus on green financing align with India’s renewable push. Analysts project a 12-month target price of Rs 215-280, assuming stable commodity prices and policy continuity. Sentiment on X reflects optimism around its Q3 performance, tempered by valuation and tariff risks.
Disclaimer: This article reflects data available as of April 6, 2025, updated through March 31, 2025, from stock exchange filings, company announcements, and verified sources. Financials and shareholding details may shift with new disclosures. This content is for informational purposes only and not investment advice; readers should consult official sources for decision-making.
