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IREDA Ltd
IREDA Q4 Results: ₹501 Cr Profit, 49% Growth, and Major Renewable Energy Push

Business and Industry Overview: 

Indian Renewable Energy Limited (IREL) and the Indian Renewable Energy Development Agency (IREDA) are both working towards clean energy in India. IREL is a private company that focuses on solar energy projects and explores new investments in power generation. It helps set up rooftop solar plants and looks for ways to grow in the renewable sector. IREDA, on the other hand, is a government-backed financial institution. It provides loans and financial help to projects related to solar, wind, hydro, and energy efficiency. IREDA was set up in 1987 and works under the Ministry of New and Renewable Energy (MNRE). Both organizations aim to make renewable energy more affordable and accessible. They want India to use cleaner power sources, reduce pollution, and move towards a sustainable future. The government is focusing a lot on solar energy. In the 2024-2025 budget, they increased the money for building solar power grids to Rs. 8,500 crore (US$ 1.02 billion), which is double what they spent the year before. The government is also supporting clean energy like green hydrogen and electric vehicles (EVs). Indian companies plan to invest Rs. 67,42,400 crore (US$ 800 billion) in these areas. 

IREDA is a strong player in India’s renewable energy market. It gets a lot of support from the government, which helps it provide loans and funding for clean energy projects. IREDA has been around since 1987 and is known for helping build projects in solar, wind, and energy efficiency. It works closely with the government’s plans to increase clean energy in the country. IREDA also has a good reputation for being reliable and transparent in its work. As the demand for renewable energy grows, IREDA is in a good position to keep helping develop new energy sources, even though new private companies are entering the market. 

Latest Stock News: 

On April 16, 2025, IREDA’s share price went up by 7%. This happened after the company shared its results for the January to March 2025 quarter (Q4 of FY25). 

In this time, IREDA made a profit of ₹501.55 crore. This profit is 49% more than the profit of ₹337 crore in the same quarter last year (January to March 2024). This shows the company earned much more money this year. 

The company’s total income also grew by 37%. It increased from last year and reached ₹1,905.06 crore. This income came from its main business — giving loans for clean energy projects like solar, wind, hydro, and others. 

IREDA also said that its loan book became bigger. It gave out more loans during the full year. The loan book grew by 28% and reached ₹76,250 crore. This means more people and companies are taking loans from IREDA to work on renewable energy projects. 

Because of all this good news, many investors started buying IREDA’s shares. This made the share price go up by 7% on April 16. One day before, on April 15, the share price had already gone up by more than 9%. In the last one month, the stock has gone up by over 20%. But it is still 24% down for the full year. 

Segmental information: 

IREDA works in two main areas to support clean energy in India. 

1. Financing Activities: IREDA gives loans to people, companies, and organizations. These loans help build renewable energy projects. The projects include solar power, wind power, hydro power, and biomass energy. IREDA helps people buy equipment for these projects too. It also gives loans to companies that make clean energy products. For example, if a company wants to build a solar power plant, they need a lot of money. IREDA can lend them the money to start the project. The company will pay back the loan in small amounts over time. IREDA also gives money for energy-saving projects.  These projects help save energy and reduce waste. All of these projects help India use more clean energy and reduce pollution. 

2. Power Generation: IREDA is also involved in making electricity. It works on renewable energy projects that produce power. IREDA helps build solar farms and wind farms that generate electricity. The electricity from these farms is used by homes, businesses, and industries. This helps supply clean energy to the country. 

Subsidiary Information: 

1. IREDA Global Green Energy Finance IFSC Limited: This company was started on May 7, 2024. It is in GIFT City in Gujarat. This area helps companies grow their financial work easily. The job of this company is to help invest in clean energy projects. It will give money to projects that use solar energy, wind energy, and other renewable sources. It will also support projects that save energy and use green technologies. This company will work not just in India but also in other countries. The main goal is to make clean energy cheaper and available to more people. 

2. New Subsidiary for Retail and B2B: IREDA also got approval from the government to start another subsidiary. This new company will focus on two areas: 

  • Retail: It will offer clean energy solutions to homes and small businesses. 
     
  • Business-to-Business (B2B): It will help big companies and industries with renewable energy projects. 
     

Q4 Highlights: 

  • IREDA made a profit of ₹501.55 crore for the fourth quarter of FY25, which is a growth of about 49% compared to ₹337 crore in the same period last year (Q4 FY24). 
     
  • The company’s revenue increased by 37%, reaching ₹1,905.06 crore. 
     
  • IREDA’s net interest income grew sharply by 47%, rising to ₹801 crore from ₹544 crore in Q4 FY24. 
     
  • The company’s asset quality has declined slightly. The Net NPA margin rose from 0.99% in Q4 FY24 to 1.35% in Q4 FY25, but it decreased from 1.5% in Q3 FY25. The Gross NPA margin stood at 2.45%. 
     
  • The company’s board has approved a borrowing plan of ₹30,800 crore for the financial year 2026. 
  • On April 16, 2025, IREDA’s shares were up by 7.20%, trading at ₹179. However, the stock is down by 20% for the year and has fallen 42% from its peak of ₹310. 

Financial Summary:  

Amount in ₹ Crore Q4 FY24 Q4 FY25 FY23 FY24 
Revenue 1,904.00 1,391.00 4,965 6,742 
Expenses 170.00 56 85 471 
EBITDA 630 488 1,716.00 2,130.00 
OPM 33% 35% 35% 32% 
Other Income 11 0 -1 12 
Net Profit 502.00 337.00 1,252 1,699 
NPM 26.37 24.23 66.46 56.48 
EPS 1.87 1.26 4.66 6.32 
BHEL Ltd
BHEL Stock Analysis: Crashed 5% to 52-Week Low on February 18- Reasons, Risks & Buying Opportunity

1. Business and Industry Overview: 

Bharat Heavy Electricals Limited (BHEL) is India’s largest engineering and manufacturing enterprise of the Government of India in the energy and infrastructure sectors. It is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India in terms of turnover, ushering in the indigenous heavy electrical equipment industry in India—a dream that has been more than realized with a well-recognized track record of performance. It was established in 1964. It has played a vital role in the nation’s industrial development, offering a comprehensive portfolio that includes power generation equipment, transmission systems, transportation solutions, defense and aerospace components, and oil and gas sector products. The company’s operations include thermal, hydro, gas, nuclear, and solar photovoltaic power projects, reflecting its diversified expertise. It has been given the status of Maharatna, which means it has more autonomy and authority to operate independently and make investments. 

BHEL has a dominant position in the power equipment manufacturing industry in India, accounting for 55% of India’s total installed power generation capacity. The company has been actively involved in India’s nuclear program since 1976, supplying critical components like reactor headers and steam generators. Presently, BHEL has 16 manufacturing divisions, 02 repair units, 04 regional offices, 08 service centers, and 15 regional centers and currently operates at more than 150 project sites across India and abroad. Its global footprint extends to over 76 countries, with an overseas installed capacity exceeding 9,000 MW across 21 countries, including Malaysia, Oman, Iraq, UAE, Bhutan, Egypt, and New Zealand. 

The industry is currently experiencing a surge in demand for power equipment, driven by record-high electricity generation during peak periods. As India is marching towards a 5 trillion economy, there is a huge demand in the manufacturing industry. However, manufacturers like BHEL face challenges due to rising expenses, particularly in raw materials and services. Despite these challenges, the company has a strong market position and a diversified portfolio that provides resilience against competitive pressures. 

2. Latest Stock News: 

In the second quarter ending September 30, 2024, BHEL reported a net profit of ₹966.7 million, a significant turnaround from a loss of ₹583 million in the same period the previous year. This positive performance was attributed to a 28.5% increase in revenue from operations, totaling ₹65.84 billion, with the power segment contributing over 75% of the total revenue. However, the first quarter of 2024 saw a net loss of ₹2.13 billion, primarily due to a 9% rise in expenses, underscoring the volatility in operational costs.  

The company stock fell 5.1% on February 18 after its Ranipet unit received arbitration claims of ₹30.78 crore from two companies, Ducon Technologies Inc. (USA) and Ducon Infratechnologies Ltd (India). These companies are seeking payments from BHEL’s Boiler Auxiliaries Plant in Ranipet, Tamil Nadu. The case is being handled by the Indian Council of Arbitration (ICA), and BHEL is defending itself. Following this news, BHEL’s stock hit a low of ₹183.6 on the BSE and was down 4.3% at ₹185.2 in the afternoon. The stock has dropped 14% in the past month and 20% since the start of 2025. Despite this, BHEL reported strong financial results for Q3 FY25, with a 170% rise in net profit (₹7,277 crore), a 32% increase in revenue, and a 40% jump in EBITDA (₹304 crore). However, the legal dispute and market concerns have impacted the stock price. 

3. Potentials: 

In 2023, BHEL and NPCIL signed an agreement to work together on nuclear power projects using Pressurized Heavy Water Reactor (PHWR) technology. BHEL has been involved in all three stages of India’s nuclear program. 

In May 2023, BHEL announced that Indian Railways had set ambitious goals for upgrading its signaling system. As technology improves, BHEL will contribute to modernizing railway signals to support this transformation. 

BHEL was chosen to build a 1,340 MW coal power plant in Rampal, Bangladesh, near the Sundarbans mangrove forest. The project is run by Bangladesh-India Friendship Power Company, a joint venture between NTPC Limited and Bangladesh Power Development Board. 

However, the project has faced criticism for its environmental impact and the risk it poses to the Sundarbans, the world’s largest mangrove forest. In 2017, Norway’s sovereign wealth fund stopped investing in BHEL due to concerns about this project. 

4. Analyst Insights: 

The company pays a decent dividend, distributing 27.8% of its profits to shareholders. The stock is priced higher than its actual assets, trading at 2.91 times its book value. The company struggles to cover its interest expenses, meaning it may have financial stress. Sales have declined by 4.73% over the last five years, showing weak business growth. Profitability is low, with a return on equity of just 1.77% over the past three years. A significant portion of earnings (₹535 crore) comes from other income, not core business operations. Customers are taking longer to pay, with debtor days increasing from 58 to 73.1 days. The company takes more time to convert resources into cash, as working capital days increased from 119 to 194 days. 

Key Financial Metrics: 

Revenue ₹7,277 crore,  
EBITDA ₹304 crore,  
Market Cap ₹69,276 crore,  
PE Ratio 133 (very high).