Tag IREDA Ltd

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 
IREDA Ltd
IREDA Shares Surge 3.94% as Borrowing Limit Rises by ₹5,000 Crore for FY25

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). It ensures that businesses and individuals get funding to invest in green energy. The company also follows strict rules for ethical business, data security, and quality management. 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. 

India’s renewable energy industry is growing very fast. The government wants to produce 500 GW of electricity from clean energy sources like solar, wind, and hydro by 2030. In 2023, India added 13.5 GW of renewable energy capacity. This was done with an investment of Rs. 74,000 crore (US$ 8.90 billion). India has a bigger plan to invest Rs. 9.22 lakh crore (US$ 109.50 billion) to build more energy infrastructure and meet the demand, which is expected to be 458 GW by 2032. 

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. 

The government is also helping farmers through the PM-KUSUM scheme, which gives money to farmers to set up solar pumps and solar power plants. This helps them with their farming and water needs. In Rajasthan, the government signed a deal with NTPC Green Energy to set up 28,500 MW of renewable energy projects. 

As of 2023, India is ranked 4th in the world for wind power, solar power, and overall renewable energy capacity. India is also a top leader in cutting down carbon emissions. It is one of the top three countries in the world for reporting and reducing carbon emissions. With more investments, clear government plans, and a focus on clean energy, India is becoming a leader in renewable energy and is moving towards a cleaner and more sustainable future. 

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 there are new private companies entering the market. 

Latest Stock News: 

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) have dropped 53% from their highest value of Rs 310 in July 2024. The stock is now in the oversold zone, with an RSI (Relative Strength Index) of 26.6, meaning the stock could be undervalued. When the RSI is below 30, it shows the stock is oversold, and when it’s above 70, it’s overbought. On March 20, 2024, the stock went up by 4.12% to Rs 143.85, and the company’s market value is Rs 38,623 crore. 

The stock reached its lowest point in 52 weeks at Rs 124.50 on March 20, 2024, but experts see Rs 137 as a strong support level and Rs 145 as resistance. If the stock goes above Rs 145, it could rise to Rs 150 or even Rs 180 soon. 

IREDA is a government-run company under the Ministry of New and Renewable Energy (MNRE). It has been helping promote renewable energy and energy-saving projects for over 36 years. Recently, the company’s borrowing plan for 2024-25 was increased by Rs 5,000 crore to Rs 29,200 crore, which will help fund more projects. This news caused the stock to go up by 4.6%. 

However, IREDA also faced some challenges. The Reserve Bank of India (RBI) did not approve its request to invest in a 900 MW Hydro Electric Power Project in Nepal. Financially, IREDA saw a rise in Non-Performing Assets (NPAs), which went up by 30.4% to Rs 1,845.5 crore, and Net NPAs increased by 53.75%. But the company still reported a 39% increase in Net Interest Income (NII) to Rs 622.25 crore, and its net profit grew by 27% to Rs 425.4 crore. 

Even though the stock has fallen 35% this year, the company’s strong growth in profits and new borrowing plans show that it could recover and perform better in the future. 

IREDA is a government company that supports renewable energy projects in India. It plans to raise ₹29,500 crore this year to fund these projects. Of this amount, ₹25,000 crore will come from loans, and ₹4,500 crore will come from selling company shares. The company is seeking government approval to reduce its ownership by up to 10% to make this possible. 

IREDA also aims to increase its loan portfolio from ₹59,650 crore at the end of last year to over ₹85,000 crore by the end of this year. To maintain its strong financial rating, the company is working to keep a healthy balance between its loans and available capital. 

In September 2024, the Indian government announced plans to sell a 7% stake in IREDA through a share sale. This sale aims to raise up to ₹4,500 crore and will help fund clean energy projects across the country. 

Potentials: 

Looking ahead, IREDA is exploring international expansion opportunities. The company has submitted a draft Green Taxonomy to the Ministry of New & Renewable Energy, which is in an advanced stage. This initiative aims to increase funding for climate-related projects and attract global green investments. 

Overall, IREDA’s plans focus on raising funds, expanding its loan portfolio, maintaining a strong financial position, and supporting India’s renewable energy goals. 

Analyst Insights: 

  • Market capitalisation: ₹ 39,258 Cr. 
  • Current Price: ₹ 146 
  • 52-Week High/Low:₹ 310 / 124 
  • Stock P/E: 25.6 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 9.30 % 
  • Return on Equity: 17.3 % 

IREDA has shown strong growth, with profits increasing by about 33.9% per year over the last five years. The company’s earnings and profits are rising, which suggests it’s doing well. Its revenue has also gone up a lot in the past year. But, the stock price is high compared to its earnings, meaning it might be expensive right now. Also, the company doesn’t pay dividends and has some issues with how it handles interest costs. Still, since IREDA is a leader in the green energy field and the government is pushing for more renewable energy, the company has good chances of continuing to grow. This makes it a Hold for now. 

IREDA Driving India’s Renewable Energy Revolution
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