IREDA inks MoU with Centre, sets Rs 8,200 crore revenue target for FY26; stock reacts

Indian Renewable Energy Development Agency (IREDA) Ltd on Monday signed a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), outlining strategic targets for the fiscal year 2025-26 (FY26).

The MoU was signed by Santosh Kumar Sarangi, Secretary, MNRE and Pradip Kumar Das, Chairman & Managing Director, IREDA, at Atal Akshay Urja Bhawan, New Delhi, in the presence of senior officials from MNRE and IREDA.

Under the MoU, the government has set a revenue from operations target of Rs 8,200 crore for FY26. IREDA had exceeded its revenue from operations target in FY 2024-25, achieving Rs 6,743.32 crore against the target of Rs 5,957 crore. The MoU also includes key performance parameters such as Return on Net Worth, Return on Capital Employed, NPA to Total Loans, Asset Turnover Ratio and EBTDA, among other targets.

Expressing confidence in the company's growth trajectory, Das, CMD at IREDA, said, "With the hope for continuing excellent performance for this year also, we are committed to sustaining our track record of excellence. IREDA has earned an 'Excellent' rating in MoU performance for four consecutive years since FY21. For FY24 MoU rating, IREDA emerged as the top performer in the NBFC and Power sector and among the top four CPSEs across sectors, as per a list of 84 CPSEs issued by the Department of Public Enterprises."

On the stock-specific front, the counter climbed 1.32 per cent to hit a day high of Rs 149.50 post this announcement.

Some analysts see IREDA trading in a tight range, with support at Rs 140–145 and resistance around Rs 152–160. A breakout above Rs 152 could extend gains, while a close below Rs 145 may push the stock towards Rs 139.

"IREDA is witnessing a gradual recovery from an oversold zone, aligning with historical support levels in the Rs 140–137 range. The next resistance is expected around Rs 158–160, followed by a bearish gap in the Rs 163–167 band. The stock is likely to trade within this defined range in the near term," said Osho Krishan, Senior Analyst – Technical & Derivative Research.

"On daily charts, IREDA shows a slightly bearish trend with strong resistance at Rs 152. A close below Rs 145 support could drag the stock towards Rs 139 in the near term," observed Sebi-registered analyst AR Ramachandran.

Sharing a similar view on support and resistance, Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, stated that a decisive move above Rs 152 may open further upside towards Rs 156. He expects the stock to remain in the Rs 145–156 band in the short term.

The company is a 'Navratna' PSU under the administrative control of the Ministry of New and Renewable Energy. As of June 2025, the government held a 71.76 per cent stake in it. The organisation offers financial products (fund- and non-fund-based) associated services, from project inception to post-completion, for renewable energy projects and related activities like equipment manufacturing and transmission.