Indian Renewable Energy Development Agency Ltd
Indian Renewable Energy Development Agency Ltd
Financial Services F&OKey Fundamentals
SmallcapFinancial InstitutionFinancial ServicesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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37 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 40.2% CAGR over last 5 years
Weaknesses
2- Company has low interest coverage ratio.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
IREDA is a government-backed renewable energy financier with a market cap of ₹32,362 Cr trading at a PE of 16.4x and PB of 2.34x. The company has delivered strong profit growth of 40% CAGR over 5 years and 34% sales CAGR over 3 years, though the stock has declined 22% over the past year.
- Exceptional 5-year profit CAGR of 40.2%, significantly outpacing most financial services peers
- Strong 3-year revenue CAGR of 34% indicating rapid loan book expansion in the renewable energy lending space
- Reasonable valuation at PE of 16.4x despite high growth profile, suggesting potential re-rating opportunity
- Consistent ROE of 16-17% over 3-5 years demonstrates stable return generation on equity
- TTM revenue growth of 20% and profit growth of 26% show continued momentum in recent quarters
- 10-year compounded sales growth of 22% reflects long-term structural tailwind from India's renewable energy push
- Government-backed entity (Mini Ratna) with lower funding costs and policy support for green energy financing
- Price-to-book of 2.34x is moderate for a high-growth NBFC with 16%+ ROE
- Stock has declined 22% over the past 1 year, indicating significant negative sentiment or overvaluation correction
- Low interest coverage ratio raises concerns about the company's ability to service its own debt obligations
- Potential capitalization of interest costs may be inflating reported profits and asset quality metrics
- Dividend yield of only 0.52% offers minimal income return to shareholders
- As a sector-specific lender focused solely on renewables, the loan book carries high concentration risk
- Debt-to-equity ratio not disclosed clearly, typical for NBFCs in this space it tends to be high given leveraged lending model
- TTM profit growth of 26% shows deceleration from the 3-year CAGR of 29% and 5-year CAGR of 40%
- ROE of 16% in the last year is flat versus the 3-year average of 17%, suggesting limited improvement in capital efficiency
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Audit committee remains vacant Aug 3
IREDA's audit committee remains vacant as of Q1FY27, posing a governance risk for the NBFC.
- Q1FY27 net profit up 37% YoY Aug 3
IREDA reported net profit of ₹337.50 crore for Q1FY27, up 37% YoY driven by higher interest income. Gross NPA ratio improved to 3.76%.
- FY26 profit up 10%, QIP raised Aug 13
IREDA posted ₹1,873 crore net profit for FY26 (+10% YoY) on 24% revenue growth, raised ₹2,006 crore via QIP, and maintained CRAR at 20.59%.
- ₹0.75 final dividend declared Aug 22
IREDA board approved ₹0.75 per share final dividend for FY26 with record date September 11, 2026. Four senior managers ceased roles.
TL;DR: IREDA is delivering strong profit growth with Q1FY27 up 37% YoY and healthy capital adequacy at 20.59% CRAR. Asset quality is improving with gross NPA declining to 3.76%. The vacant audit committee is a governance overhang but financials are trending positively, supported by the ₹2,006 crore QIP raising growth capital for the renewable energy lending book.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,143 | 1,177 | 1,253 | 1,391 | 1,510 | 1,630 | 1,698 | 1,904 | 1,947 | 2,057 | 2,130 | 2,175 | 2,248 |
| Expenses | -66 | -3 | 99 | 56 | 51 | 131 | 119 | 170 | 427 | 138 | 179 | 308 | 486 |
| Financing Profit | 445 | 387 | 394 | 488 | 484 | 469 | 548 | 630 | 302 | 706 | 718 | 626 | 422 |
| Fin. Margin % | 39% | 33% | 31% | 35% | 32% | 29% | 32% | 33% | 16% | 34% | 34% | 29% | 19% |
| Other Income | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 11 | 12 | 1 | 10 | 6 | 1 |
| Interest | 764 | 793 | 760 | 847 | 975 | 1,030 | 1,032 | 1,104 | 1,218 | 1,213 | 1,233 | 1,241 | 1,341 |
| Depreciation | 6 | 7 | 8 | 9 | 9 | 9 | 10 | 11 | 10 | 10 | 11 | 13 | 10 |
| PBT | 440 | 380 | 386 | 480 | 476 | 460 | 538 | 630 | 305 | 696 | 717 | 619 | 413 |
| Tax % | 33% | 25% | 13% | 30% | 19% | 16% | 21% | 20% | 19% | 21% | 18% | 20% | 18% |
| Net Profit | 295 | 285 | 336 | 337 | 384 | 388 | 425 | 502 | 247 | 549 | 585 | 493 | 338 |
| EPS in Rs | 1.29 | 1.25 | 1.25 | 1.26 | 1.43 | 1.44 | 1.58 | 1.87 | 0.88 | 1.95 | 2.08 | 1.75 | 1.2 |
| Gross NPA % | 3.08% | 3.13% | 2.9% | — | 2.19% | 2.19% | 2.68% | 2.45% | 4.13% | 3.97% | 3.75% | 3.49% | 3.76% |
| Net NPA % | 1.61% | 1.65% | 1.52% | — | 0.95% | 1.04% | 1.5% | 1.35% | 2.06% | 1.97% | 1.68% | 1.29% | 1.22% |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,118 | 1,174 | 2,020 | 2,369 | 2,655 | 2,860 | 3,483 | 4,965 | 6,754 | 8,309 | 8,610 |
| Expenses | 88 | 84 | 431 | 649 | 495 | 430 | 232 | 85 | 471 | 1,052 | 1,111 |
| Financing Profit | 384 | 421 | 406 | 260 | 590 | 843 | 1,163 | 1,716 | 2,142 | 2,352 | 2,471 |
| Fin. Margin % | 34% | 36% | 20% | 11% | 22% | 29% | 33% | 35% | 32% | 28% | 29% |
| Other Income | 0 | 1 | -72 | 3 | 3 | 14 | 0 | -1 | 0 | 28 | 17 |
| Interest | 646 | 668 | 1,183 | 1,459 | 1,570 | 1,587 | 2,088 | 3,164 | 4,141 | 4,905 | 5,027 |
| Depreciation | 5 | 4 | 23 | 23 | 23 | 23 | 24 | 30 | 39 | 44 | 44 |
| PBT | 379 | 418 | 311 | 241 | 570 | 834 | 1,139 | 1,685 | 2,104 | 2,337 | 2,445 |
| Tax % | 28% | 29% | 20% | 11% | 39% | 24% | 24% | 26% | 19% | 20% | — |
| Net Profit | 272 | 298 | 250 | 215 | 346 | 634 | 865 | 1,252 | 1,699 | 1,873 | 1,964 |
| EPS in Rs | 347 | 380 | 3.19 | 2.73 | 4.42 | 2.77 | 3.78 | 4.66 | 6.32 | 6.67 | 6.98 |
| Div. Payout % | 20% | 53% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 20% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 785 | — | 785 | 785 | 785 | 2,285 | 2,285 | 2,688 | 2,688 | 2,809 |
| Reserves | 1,394 | — | 1,799 | 1,737 | 2,211 | 2,984 | 3,651 | 5,872 | 7,578 | 10,972 |
| Borrowing | 7,439 | — | 18,753 | 21,854 | 24,000 | 27,613 | 40,165 | 49,687 | 64,740 | 77,846 |
| Other Liabilities | 663 | — | 3,181 | 3,277 | 3,298 | 3,827 | 4,347 | 4,354 | 4,728 | 2,175 |
| Total Liabilities | 10,280 | — | 24,518 | 27,652 | 30,293 | 36,708 | 50,447 | 62,600 | 79,734 | 93,802 |
| Fixed Assets | 33 | — | 303 | 282 | 266 | 248 | 229 | 361 | 349 | 320 |
| CWIP | 7 | — | 0 | 0 | 0 | 131 | 144 | 0 | 0 | 0 |
| Investments | 0 | — | 0 | 0 | 0 | 99 | 99 | 101 | 626 | 910 |
| Other Assets | 10,241 | — | 24,215 | 27,370 | 30,027 | 36,230 | 49,975 | 62,138 | 78,760 | 92,572 |
| Total Assets | 10,280 | — | 24,518 | 27,652 | 30,293 | 36,708 | 50,447 | 62,600 | 79,734 | 93,802 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | — | -5,018 | -1,709 | -3,206 | -5,254 | -12,343 | -11,100 | -14,461 | -14,482 |
| Investing | — | — | -37 | 0 | -2 | -107 | -17 | -23 | -543 | -281 |
| Financing | — | — | 3,736 | 2,141 | 2,441 | 5,271 | 12,368 | 11,059 | 14,960 | 14,748 |
| Net Cash Flow | — | — | -1,319 | 431 | -767 | -90 | 7 | -64 | -44 | -15 |
| Free Cash Flow | — | — | -5,055 | -1,710 | -3,209 | -5,262 | -12,360 | -11,123 | -14,488 | -14,498 |
| CFO/OP | — | — | -308 | -89 | -141 | -204 | -372 | -220 | -221 | -193 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 12% | — | 11% | 8% | 13% | 15% | 15% | 17% | 18% | 16% |
Documents
Frequently Asked Questions about Indian Renewable Energy Development Agency Ltd
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Company Information
Indian Renewable Energy Development Agency Ltd was incorporated as a fully owned Govt. of India enterprise under the administrative control of the MNRE. Furthermore, the company was notified as a public financial institution and is also registered as a non-deposit taking NBFC with the RBI. The company was established for the promotion, development and commercialisation of new and renewable sources of energy and provides financial assistance to energy efficiency and conservation projects. The Ministry of New and Renewable Energy, Government of India has given IREDA the 'Navaratna Status. RBI classified company as “Infrastructure Finance Company”.[1][2]