IREDA shares plunge 46% from record high: Is it time to hold or fold?

Shares of Indian Renewable Energy Development Agency (IREDA) Ltd were last seen trading flat at Rs 168.25 in Thursday's trade. At this price, the stock has crashed 45.73 per cent from its all-time high level of Rs 310, seen on July 15 last year. 

IREDA reported strong provisional business performance for the quarter ended June 30, 2025. Loan sanctions jumped 29 per cent year-on-year (YoY) to Rs 11,740 crore, while disbursements increased 31 per cent to Rs 6,981 crore. The company's outstanding loan book stood at Rs 79,960 crore, marking a 27 per cent rise from Rs 63,207 crore in the same period last year.

Prior to this, the state-owned renewable energy financier had raised Rs 2,000 crore through a Qualified Institutional Placement (QIP) last month. As part of the fundraising, IREDA's board approved the allotment of 12.14 crore equity shares at an issue price of Rs 155.14 per share.

A few market experts believe IREDA could find support in the Rs 165–158 range, with resistance likely near Rs 175. One analyst suggested that long-term investors with a high-risk appetite may consider holding the stock.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that IREDA has corrected nearly 50 per cent from its peak. He said the stock is currently consolidating and advised that long-term investors with a high-risk appetite can consider holding on.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, observed that the stock has been trading sluggishly within a narrow Rs 160–185 range and is currently hovering near Rs 170. He noted a weak bias, suggesting that a slide towards Rs 160 is possible unless the stock decisively crosses the Rs 175 mark, which could signal a breakout and further upside.

Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, identified Rs 175 as a key immediate resistance level for IREDA, with support seen at Rs 158.

Drumil Vithlani, Technical Research Analyst at Bonanza, echoed a cautious stance, stating that as long as the stock stays below Rs 175, the broader trend remains negative. A close below Rs 165 could lead to increased selling pressure, potentially dragging the stock down to the Rs 160–155 zone in the near term.

The company is a 'Navratna' PSU under the administrative control of the Ministry of New and Renewable Energy. As of June 11, 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.