IREDA: Driving India’s Renewable Energy Revolution with Innovative Financing and Record Growth in Q3 FY25
IREDA Ltd: Overview
Incorporated in 1987, Indian Renewable Energy Development Agency Ltd. (IREDA) is a Government of India enterprise operating under the Ministry of New and Renewable Energy (MNRE). It is a public financial institution primarily focused on promoting, developing, and financing renewable energy and energy efficiency projects across India. As a specialized institution, IREDA plays a pivotal role in India’s transition towards a sustainable and low-carbon economy by supporting the government’s renewable energy initiatives. IREDA has been instrumental in financing a significant portion of India’s renewable energy capacity, supporting the country’s ambition of achieving 500 GW of non-fossil fuel capacity by 2030. India’s renewable energy sector is poised for exponential growth, driven by ambitious government targets, favourable policies, and technological advancements. With the push for green hydrogen, offshore wind projects, and large-scale solar parks, IREDA is positioned to play a critical role in financing and driving the nation’s green energy transformation. Its expertise and robust financial strategies make it a key player in India’s journey towards sustainable energy leadership.
Business Segments:
- Renewable Energy Financing: It provides financing to large-scale solar photovoltaic (PV) power plants, rooftop solar projects, and solar thermal systems. Supporting initiatives to generate energy from agricultural waste, municipal solid waste, and other biomass resources. Major segments were Solar Energy, Wind Energy Projects, Biomass Projects, Hydro Power projects, etc.
- Innovative Financing Solutions: It is a way of financing through issuing green bonds to raise funds for renewable energy projects, attracting both domestic and international investors, offering refinancing options for operational renewable energy projects to optimize capital structures or short-term funding solutions for projects awaiting long-term financing or subsidies from government schemes.
Subsidiary Information:
- IREDA Global Green Energy Finance IFSC Ltd: It is a wholly owned subsidiary operates from GIFT city Gandhinagar, Gujarat. Its mission is to provide finance and promote renewable energy projects, domestically and internationally, aligning with IREDA’s vision of expanding sustainable energy solutions. This entity is designed to manage retail business under schemes like PM-Suryaghar (Rooftop Solar) and PM-KUSUM, as well as B2C segments in renewable energy and emerging sectors, including electric vehicles, energy storage, green technologies, sustainability, and energy efficiency.
Q3 FY25 & Business Highlights
- Revenue of ₹1698 crore in Q3 FY25 up by 35% YoY from ₹1253 crore in Q3 FY24.
- EBITDA of ₹548 crore in this quarter at a margin of 32% compared to 31% in Q3 FY24.
- Profit of ₹425 crore in this quarter compared to a ₹336 crore profit in Q3 FY24.
- IREDA signed MoU with SJVN and GMR for 900MW Hydropower Project in Nepal.
- Incorporation of IREDA Global Green Energy Finance IFSC Limited, a wholly owned subsidiary in GIFT City Gandhinagar for Foreign currency financing.
- The Renewable capacity of IREDA was 125GW in FY19 which has increased to 206GW in FY25, with highest share of solar power in capacity.
- The gross yield on loan assets has come to 9.96% and the cost of borrowing at 7.68%, which creates interest spread of 2.28%.
- The sector wise loan disbursement as on 31 December is majorly 26% solar, 15% wind, 12% hydro power18% loan facility to state utilities.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 1253 | 1698 | 3483 | 4965 |
| Expenses | 760 | 1032 | 2088 | 3164 |
| EBITDA | 394 | 548 | 1163 | 1716 |
| OPM | 31.0% | 32.0% | 33.0% | 35.0% |
| Net Profit | 336 | 425 | 865 | 1252 |
| NPM | 26.8% | 25.0% | 24.8% | 25.2% |
| EPS | 1.25 | 1.58 | 3.78 | 4.66 |