Indian Renewable Energy Development Agency Ltd logo

Indian Renewable Energy Development Agency Ltd

IREDA NSE

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]

AI Verdict: HOLD Confidence: 5%

IREDA offers strong structural growth in India's renewable energy financing space with 40% profit CAGR over 5 years and reasonable PE of 19.2x, but the stock has corrected 23% in the last year, trades at 2.61x book value, and carries concerns around interest coverage and capitalization practices that warrant caution.

Key Fundamentals

SmallcapFinancial InstitutionFinancial Services
Market Cap
₹36,110 Cr
Volatility
Moderate
P/E Ratio
19.14
EBITDA
₹7,218 Cr
Return on Equity
11.56%
Debt to Equity
6.08
Book Value
₹49.07
EPS
₹1.29
52W High
₹174.6
52W Low
₹108.65

Technical Indicators

Key Insights

Strengths

1
  • Company has delivered good profit growth of 40.2% CAGR over last 5 years

Weaknesses

3
  • Stock is trading at 2.60 times its book value
  • Company has low interest coverage ratio.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
22.42% ↗
Net Income Growth
4.37% ↗
Cash Flow Change
-30.27% ↘
ROE
13.06% ↗
ROCE
0.12% ↗
EBITDA Margin (Avg.)
-6.49% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

IREDA offers strong structural growth in India's renewable energy financing space with 40% profit CAGR over 5 years and reasonable PE of 19.2x, but the stock has corrected 23% in the last year, trades at 2.61x book value, and carries concerns around interest coverage and capitalization practices that warrant caution.

Bull Case 7
  • Exceptional 5-year compounded profit growth of 40% CAGR demonstrates strong earnings momentum in the renewable energy lending space
  • Revenue growth remains robust with TTM sales growth at 23% and 3-year compounded sales CAGR of 34%, indicating sustained loan book expansion
  • PE ratio of 19.2x is reasonable for a high-growth NBFC operating in a policy-tailwind sector like green energy financing
  • Consistent ROE of 16-17% over 3 and 5 year periods shows the company is generating adequate returns on shareholder equity
  • Market cap of Rs 35,686 crore provides meaningful scale and institutional relevance as India's dedicated renewable energy financing arm
  • India's target of 500 GW non-fossil fuel capacity by 2030 creates a massive addressable lending opportunity, with IREDA being the primary government-backed vehicle
  • Dividend yield of 0.47% provides a token income stream while the company reinvests for growth
Bear Case 8
  • Stock has declined 23% over the past 1 year, indicating significant negative price momentum and possible de-rating by the market
  • Trading at 2.61x price-to-book value is elevated for a lending institution with potential asset quality risks in project finance
  • Low interest coverage ratio raises concerns about the company's ability to service its own borrowing costs comfortably
  • Possible capitalization of interest costs could be flattering reported profitability and masking true operating expenses
  • TTM profit growth has decelerated sharply to 10% from the 3-year CAGR of 29%, suggesting earnings momentum is fading
  • Debt-to-equity ratio is unavailable, creating opacity around leverage levels for what is essentially a leveraged lending business
  • Only 2 analyst ratings available with a 50-50 split between buy and hold, indicating limited institutional coverage and no strong consensus
  • As a government-owned entity, IREDA faces risks of directed lending, political interference, and sub-optimal capital allocation decisions

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 6
  • NIM contracts 516 bps in Q4 Jun 01

    Net interest margin fell sharply from 34.33% in Q3 FY26 to 29.17% in Q4 FY26, with PAT margin compressing to 22.75% from 27.59% QoQ, signaling intensifying funding cost pressure.

  • Q4 PAT drops QoQ and YoY Jun 01

    Q4 FY26 standalone net profit fell 15.81% QoQ and 1.78% YoY to ₹492.63 crore, while interest costs surged 12.42% YoY to ₹1,240.86 crore.

  • Stock down 24% YoY Jun 01

    IREDA shares declined 24% year-on-year to ₹134.15, with market cap at ₹36,548 crore reflecting investor concerns about deteriorating quarterly profitability trends.

  • Gross NPA rises to 3.49% May 29

    Gross NPA ratio increased to 3.49% in FY26 from 2.45% a year ago, partly due to court-ordered classifications, though it improved sequentially from 3.75% in Q3.

  • Board non-compliance fine May 29

    IREDA was fined ₹2.03 lakh by NSE and BSE for failing to meet board composition norms in Q4 FY26 due to delays in independent director appointments by MNRE.

  • Limited operating leverage May 30

    Operating expenses grew 23.9% to ₹6,001 crore in FY26, nearly matching the 23% income growth, translating a 23% revenue surge into only 10% PAT growth.

Positives 7
  • FY26 PAT hits record ₹1,873 cr May 29

    Full-year net profit rose 10.4% to ₹1,873 crore with total operating income up 23% YoY to ₹8,337 crore and operating profit increasing 33% during the year.

  • Loan book grows 22% to ₹93K cr May 30

    Outstanding loan book reached ₹93,069 crore as of March 2026, with disbursements up 16% to ₹34,946 crore and sanctions growing 9% to ₹51,883 crore.

  • Net NPA improves to 1.29% May 30

    Net NPA improved to 1.29% from 1.35% YoY, with Provision Coverage Ratio strengthened significantly from 45.31% to 63.88%, absorbing gross NPA rise.

  • Capital position fortified May 30

    Net worth surged 34.3% to ₹13,781 crore aided by a ₹2,006 crore QIP, with CRAR at a healthy 20.59% after RBI norm adoption freed ₹7,788 crore in risk-weighted assets.

  • Diversified funding secured May 29

    IREDA raised ₹31,914 crore through borrowings, secured a JPY 26 billion line from SBI Tokyo, and LIC acquired a 2.21% stake during FY26.

  • Interest spread improves to 2.49% May 30

    Cost of borrowings fell 56 bps to 7.05% in FY26, exceeding the 49 bps decline in gross yield on advances, improving interest spread to 2.49% and NIM to 3.65% from 3.27%.

  • Emerging clean energy expansion May 29

    RE manufacturing exposure nearly doubled to ₹8,984 crore and BESS portfolio reached ₹611 crore, positioning IREDA for next-generation clean energy financing.

Neutral 2
  • Dividend of ₹1.35 per share May 29

    Board recommended total FY26 dividend of ₹1.35 per equity share (₹0.60 interim + ₹0.75 final), representing a conservative 20.2% payout ratio.

  • Promoter holds 71.76% stake Jun 01

    Government of India holds 71.76% through President of India, providing strategic stability as a Navratna enterprise but limiting free float and liquidity.

TL;DR: IREDA delivered record FY26 annual results with 22% loan book growth and 10% PAT growth, supported by India's accelerating renewable energy buildout. However, Q4 FY26 revealed concerning margin compression with NIM contracting 516 bps sequentially and quarterly profit declining, driven by rising funding costs. The stock is down 24% YoY as markets price in the profitability slowdown despite strong volume growth. The key question ahead is whether IREDA can stabilize margins through its improved cost of borrowings while sustaining the 22%+ loan book growth needed to support India's 500 GW clean energy target by 2030.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
1,036
1,143
1,177
1,253
1,391
1,510
1,630
1,698
1,904
1,947
2,057
2,130
2,175
Expenses
104
-66
-3
99
56
51
131
119
170
427
138
179
308
Financing Profit
294
445
387
394
488
484
469
548
630
302
706
718
626
Fin. Margin %
28%
39%
33%
31%
35%
32%
29%
32%
33%
16%
34%
34%
29%
Other Income
0
0
0
0
0
0
1
1
11
12
1
10
6
Interest
638
764
793
760
847
975
1,030
1,032
1,104
1,218
1,213
1,233
1,241
Depreciation
6
6
7
8
9
9
9
10
11
10
10
11
13
PBT
288
440
380
386
480
476
460
538
630
305
696
717
619
Tax %
12%
33%
25%
13%
30%
19%
16%
21%
20%
19%
21%
18%
20%
Net Profit
254
295
285
336
337
384
388
425
502
247
549
585
493
EPS in Rs
1.11
1.29
1.25
1.25
1.26
1.43
1.44
1.58
1.87
0.88
1.95
2.08
1.75
Gross NPA %
3.21%
3.08%
3.13%
2.9%
—
2.19%
2.19%
2.68%
2.45%
4.13%
3.97%
3.75%
3.49%
Net NPA %
1.66%
1.61%
1.65%
1.52%
—
0.95%
1.04%
1.5%
1.35%
2.06%
1.97%
1.68%
1.29%
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
1,118
1,174
2,020
2,369
2,655
2,860
3,483
4,965
6,754
8,309
Expenses
88
84
431
649
495
430
232
85
471
1,052
Financing Profit
384
421
406
260
590
843
1,163
1,716
2,142
2,352
Fin. Margin %
34%
36%
20%
11%
22%
29%
33%
35%
32%
28%
Other Income
0
1
-72
3
3
14
0
-1
0
28
Interest
646
668
1,183
1,459
1,570
1,587
2,088
3,164
4,141
4,905
Depreciation
5
4
23
23
23
23
24
30
39
44
PBT
379
418
311
241
570
834
1,139
1,685
2,104
2,337
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
EPS in Rs
347
380
3.19
2.73
4.42
2.77
3.78
4.66
6.32
6.67
Div. Payout %
20%
53%
0%
0%
0%
0%
0%
0%
0%
20%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
12%
—
11%
8%
13%
15%
15%
17%
18%
16%

Shareholding Pattern

As of Mar 2026
Promoters 71.76%
Public 22.25%
DIIs 2.45%
FIIs 2.14%
Others 1.41%
Total 100.01%
  Nov 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
71.76%
71.76%
71.76%
71.76%
FIIs
0.00%
1.88%
1.36%
2.70%
2.02%
1.85%
1.75%
2.04%
1.92%
2.07%
2.14%
DIIs
8.10%
4.37%
0.95%
0.42%
0.35%
0.64%
0.51%
2.95%
2.57%
2.51%
2.45%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
12.41%
17.58%
21.33%
20.39%
21.34%
21.24%
21.44%
21.33%
22.39%
22.31%
22.25%
Others
4.50%
1.17%
1.36%
1.49%
1.28%
1.27%
1.30%
1.92%
1.36%
1.36%
1.41%
No. of Shareholders
5,26,355
13,67,950
21,47,270
22,43,290
26,16,560
26,19,360
26,79,940
26,41,980
26,56,620
25,75,370
25,19,680

Documents

1
Concall - Apr 2024 Apr 2024
2
Concall - Apr 2025 Apr 2025
3
Concall - Jul 2025 Jul 2025
4
Concall - Jul 2025 Jul 2025
5
Concall - May 2026 May 2026

Frequently Asked Questions about Indian Renewable Energy Development Agency Ltd

What does Indian Renewable Energy Development Agency Ltd do?
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 c...
Where is Indian Renewable Energy Development Agency Ltd (IREDA) listed?
Indian Renewable Energy Development Agency Ltd is listed on the Indian stock exchanges. It is listed on NSE: IREDA and BSE: 544026. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Indian Renewable Energy Development Agency Ltd belong to?
Indian Renewable Energy Development Agency Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd has a market capitalisation of approximately ₹36109.86 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Indian Renewable Energy Development Agency Ltd?
The Price-to-Earnings (PE) ratio of Indian Renewable Energy Development Agency Ltd is 19.14. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Indian Renewable Energy Development Agency Ltd?
Over the past 52 weeks, Indian Renewable Energy Development Agency Ltd has traded between a low of ₹108.65 and a high of ₹174.6. This range helps investors understand the stock's price volatility and recent trading levels.
Does Indian Renewable Energy Development Agency Ltd pay dividends?
Yes, Indian Renewable Energy Development Agency Ltd has a dividend yield of 0.47%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd has a Return on Equity (ROE) of 11.56%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Indian Renewable Energy Development Agency Ltd on Tapetide?
On Tapetide, you can view Indian Renewable Energy Development Agency Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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]

Website ireda.in
Listed 2023-11-29
Face Value ₹ 10
Issued Size 2,80,92,31,268

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