IREDA shares up 7% today, take one-week gain to 17%; here's why

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) climbed 7 per cent in Wednesday's trade after India's largest pure-play green financing NBFC, reported a 49 per cent year-on-year (YoY) surge in net profit for the March quarter on 37 per cent jump in sales for the same period, with improved asset quality sequentially. 
IREDA, where the government owned 75 per cent stake, said its outstanding loan book jumped 28 per cent while net worth climbed 20 per cent in the year gone by. 

Following the development, the Navratna PSU climbed 7.42 per cent to hit a high of Rs 179.50 on BSE. With this, the PSU stock has rallied 16.69 per cent in the past one week against 4 per cent rise in the BSE Sensex. This helped the stock cut its year-to-date losses to 20 per cent. 

For the March quarter, IREDA reported a net profit of Rs 501.55 crore compared with Rs 337.39 crore in the corresponding quarter last year. Revenue from operations climbed 36.93 per cent to Rs 1,905.06 crore from Rs 1,391.26 crore in the year-ago period.

Gross non-performing asset (NPA) for the quarter at Rs 1,866 crore was 2.45 per cent of the total advances. This was against Rs 1,845 crore or 2.68 per cent in the December quarter. 

IREDA said its loan book stood at Rs 76,250 crore at the end of FY25 against Rs 59,698 crore at the end of FY24. For the year, net interest margin rose to 3.27 per cent from 2.85 per cent in the year ago. Cost of borrowing eased to 7.61 per cent against 7.8 per cent in FY24. 

In FY25, IREDA was granted Navratna status. During the year, it incorporated a wholly-owned subsidiary IREDA Global Green Energy Finance IFSC in the GIFT City, Gandhinagar, for foreign currency financing. It also received approval for incorporation of a retail subsidiary focused on renewable energy financing from the DIPAM and MNRE. The PSU's signing MoUs with SJVN and GMR for 900MW Hydro power Project in Nepal was another highlight of FY25. 

During the year, IREDA launched first-ever issue of Perpetual Bonds for an amount of Rs 1,247 crore. It raised Rs 910.37 crore through privately placed tier-II bonds. Also, it secured 26 billion yen ECB facility from SBI Tokyo.