IREDA shares up 28% in a month; can this recovery be sustained?

Shares of Indian Renewable Energy Development Agency (IREDA) jumped 5.57 per cent to settle at Rs 176.40 on Wednesday. At this closing price, the scrip has climbed 27.73 per cent in the past one month. However, it has still corrected 20.47 per cent in the calendar year 2025 so far.

The recent upmove in stock price came after the state-run renewable energy financier recorded a 48.66 per cent year-on-year (YoY) rise in its consolidated net profit for the March 2024 quarter (Q4 FY25). During the quarter under review, profit came at Rs 501.55 crore as against Rs 337.39 crore in the corresponding period last year (Q4 FY24).

Revenue from operations climbed 36.93 per cent to Rs 1,905.06 crore in Q4 FY25 compared to Rs 1,391.26 crore in the year-ago period. The state-owned firm recently said its loan order book registered a 28 per cent (YoY) growth during the financial year 2024-25. In FY25, the figure stood at Rs 76,250 crore compared to Rs 59,698 crore in the March 2024 fiscal.

Last month, the company's board cleared a borrowing programme of up to Rs 30,800 crore for FY26. IREDA also mentioned that its borrowing limit was increased by Rs 5,000 crore to Rs 29,200 crore for FY25.

A few market experts largely remained positive on the counter. One of them said IREDA has potential to move towards Rs 200-220 levels in the near term. With that being said, strong support could be seen in the Rs 155-160 range.

"We have a 'Buy' recommendation on IREDA. It is a growth story based on the aspiration that India could accomplish its deficit in terms of power requirements. From a 1.5 to 2-year view, the company -- engaged in financing clean and green power energy projects -- is a great theme to look at," Gaurang Shah, Senior VP at Geojit Financial, told Business Today.

"The company's continued expansion in the renewable energy financing space likely translates to strong bottom-line performance. IREDA is expected to maintain its growth trajectory, potentially announcing new targets for FY26 due to a strong market position. The broad retail investor base (25.88 lakh shareholders) also indicates continued confidence in IREDA's business model and growth prospects," said Rajesh Sinha, Senior Research Analyst at Bonanza Group.

"The stock was in corrective phase for almost 6-7 months. On an immediate basis, a decisive close above Rs 178-180 can lead it towards Rs 190-200 levels. From a risk-reward point of view, the stock can be bought at current levels with major support around Rs 155-160, expecting an upside move towards Rs 200-220 levels," said Arpit Beriwal, Manager – Derivatives Analyst (Equity Research) at Motilal Oswal Financial Services.

The company is a 'Navratna' PSU under the administrative controls of the Ministry of New and Renewable Energy. As of March 2025, the government held a 75 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.