IREDA shares climb 9% after 2-session drop; does this signal a bullish reversal?

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) resumed their upward momentum in Wednesday's trade after a two-session pause. The stock climbed 9.12 per cent to hit a day's high of Rs 140.65 and was last trading 8.15 per cent higher at Rs 139.40. With this, IREDA has gained 26.15 per cent over the past one month.

In its Q4 FY26 business update, the state-run renewable energy financier reported that loan sanctions for the year ended March 31, 2026, rose 9 per cent to Rs 51,883 crore, compared with Rs 47,453 crore in the corresponding period last year.

Loan disbursements increased 16 per cent to Rs 34,946 crore from Rs 30,169 crore in the previous fiscal, while the outstanding loan book expanded 22 per cent year-on-year to Rs 93,075 crore, up from Rs 76,282 crore in the year-ago period.

A few market experts remain largely cautiously optimistic on the stock's outlook.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "Existing investors can consider holding on the stock with a long-term perspective. One should monitor the quarterly earnings and management guidance going ahead." He added that those willing to enter should wait for now.
From a technical perspective, indicators suggest improving momentum, though key resistance levels remain in focus.

Osho Krishan, Senior Analyst at Angel One, said, "IREDA has exhibited a strong upward move, breaking out of a declining trendline, which signals a potential bullish reversal. The stock has also moved above its key EMAs on daily charts, reinforcing positive sentiment. However, the 200-day SMA near Rs 140 remains a critical resistance level. A sustained breakout above this zone could trigger the next leg of the rally. On the downside, immediate support has shifted higher to the Rs 127–124 range, likely providing stability against near-term corrections."

Echoing a similar view, Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said, "Support is seen at Rs 130, while resistance is placed at Rs 140. A decisive move above Rs 133 could push the stock towards Rs 144, with the expected short-term trading range pegged between Rs 130 and Rs 144."

Ravi Singh, Chief Research Officer at Mastertrust, said the stock appears strong on charts and could hit an upside target of Rs 155 in the near term. He advised investors to keep a stop loss at Rs 130 for this trade.

On the earnings front, IREDA had reported strong financial performance in the previous quarter. For Q3 FY26, net profit rose 37.5 per cent year-on-year to Rs 584.9 crore, compared with Rs 425.4 crore in the corresponding quarter of the previous fiscal.

Revenue from operations climbed 25 per cent to Rs 2,130 crore from Rs 1,698 crore a year earlier, while net interest income (NII) grew 34.8 per cent year-on-year to Rs 897.5 crore, up from Rs 665.8 crore.

IREDA, a 'Navratna' public sector undertaking under the Ministry of New and Renewable Energy (MNRE), provides financial products and services for renewable energy projects and related activities. As of March 2025, the government held a 71.76 per cent stake in the company.