Shares of Indian Renewable Energy Development Agency (IREDA) Ltd. soared over 5% on Wednesday, April 16, following the announcement of its strong Q4 earnings. The state-owned enterprise reported a net profit of ₹501.55 crore for the fourth quarter of FY25, released after market hours on Tuesday.
Quarterly Financial Performance: Profit and Revenue Soar
In comparison, IREDA had posted a profit of ₹337 crore during the same quarter of the previous financial year, marking a remarkable 49% year-on-year growth in profitability. The company also recorded a 37% rise in total income, reaching ₹1,905.06 crore.
Net Interest Income and Asset Quality Insights
IREDA’s net interest income jumped to ₹801 crore in Q4 FY25 from ₹544 crore in Q4 FY24, reflecting a robust 47% increase year-over-year. However, asset quality showed mixed results:
- Net NPA ratio rose from 0.99% to 1.35% compared to the same period last year, although it improved from 1.5% in Q3 FY25.
- Gross NPA for the quarter stood at 2.45%.
Strong Tailwinds: Green Energy Demand and Loan Growth
IREDA, which finances renewable energy and energy efficiency projects, is benefiting from the surging demand for green infrastructure funding. The company also shared a positive business update at the beginning of April, highlighting an expanding loan portfolio.
Retail Shareholder Growth and Government Holding
The number of retail shareholders in IREDA has increased to 26.48 lakh, who now hold 20.25% of the company. This is up from 25.88 lakh shareholders holding 19.95% at the end of the December quarter. The government’s stake remains stable at 75%.
Fundraising Plans: ₹5,000 Crore QIP on the Horizon
IREDA’s board has approved a plan to raise ₹5,000 crore via Qualified Institutional Placement (QIP). While the exact timeline has not been disclosed, this proposal has already received shareholder approval in February.
Additionally, for FY26, the board has greenlit a borrowing plan of ₹30,800 crore, indicating the company’s aggressive growth and funding roadmap.
Stock Performance: Rally Amid Volatility
IREDA’s stock was trading 7.20% higher at ₹179 on Wednesday. Despite this surge, the stock is down 20% year-to-date and has corrected 42% from its peak of ₹310.
Conclusion: Riding the Green Energy Boom
IREDA’s impressive profit growth, expanding loan book, and aggressive fundraising plans highlight its rising influence in India’s renewable energy financing space. With strong fundamentals and increasing retail interest, the stock is drawing attention as a potential multibagger in the long run.
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