Overview

• IREDA's net profit surged 42% YoY to Rs. 549 crore, supported by strong interest income and a growing loan book.

• Assets grew 28% YoY to Rs. 87,793 crore; CRAR stood at 16.10%, a sign of good capital adequacy.

• Analysts are bullish on IREDA share price, with 50% recommending ‘Buy’ and the other 50% giving it ‘Hold’ ratings.

Indian Renewable Energy Development Agency (IREDA) share price rose close to 3.7% at press time to a high of Rs. 155.59. The price hike came following the state-owned renewable energy giant’s announcement of a strong 42% year-on-year (YoY) growth in net profit during the September quarter (Q2 FY26). The positive Q2 results further improved investor sentiment, reflecting the company's resilience in India's clean energy financing sector. Let’s dive into IREDA share price analysis based on Moneycontrol data. 

IREDA Q2 Results Explained 

IREDA shares’ net profit increased to Rs. 549 crore in September 2025 from Rs. 387.75 crore during the corresponding period last year. The total income of the company increased 26% year on year to Rs.  2,057.45 crore as its interest income rose along with consistent growth in its loan book.

Profit before tax (PBT) also saw a sharp rise, reaching Rs. 696 crore, up from Rs. 460 crore a year earlier. IREDA reported a net profit of Rs. 795.68 crore for the first half of FY26. It is slightly higher than the Rs. 771.42 crore recorded in the same period last year. At the same time, total income grew to Rs. 4,016.98 crore from Rs. 3,141.08 crore.

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Asset Growth and Financial Strength

As of September 30, 2025, the total assets of IREDA stock rose by 28% year-on-year to Rs.  87,793.76 crore, from Rs.  68,748 crore in the last year. The CRAR of the company was at 16.10%, marginally higher than 15.84% in the earlier year, despite charging a 100% risk weight to the loans taken for commissioned renewable energy projects.

However, the gross non-performing assets (GNPA) ratio was up marginally to 1.37% from 1.19% and net NPA increased to 0.91% from 0.64% last year. The cumulative impairment allowance of the company also grew to Rs. 2,348.90 crore for its increasing loan book.

Fundraising and Debt Management

In the quarter, IREDA consolidated its funding position by mobilizing Rs. 453 crore through a private issue of perpetual taxable unsecured bonds (Series POI-II). The borrowings of the company totaled Rs. 69,939 crore, including Rs. 28,942 crore in debt securities and Rs.  37,741 crore in loans.

The PSU registered zero defaults against borrowings and had a cover of 2.61 times over its non-convertible debentures (NCDs). The debt-to-equity ratio of the company turned better at 5.41 versus 5.85 in the last year. Hence, reflecting a more resilient balance sheet and improved leverage management.

Earnings, Valuation, and Market Overview

IREDA's quarterly earnings per share (EPS) for Q2 FY26 were Rs. 1.97 compared with Rs.  1.44 in the corresponding quarter last year. Its net worth improved considerably to Rs.  12,920 crore from Rs. 9,336 crore in the previous year. At a price-to-earnings (P/E) multiple of approximately 27.6, the stock is quoting above the industry average of 11.37, indicating that investors are factoring in high future growth prospects.
IREDA share price chart on Moneycontrol shows gains of 3.17% as of 2 PM:

IREDA shares have a market cap of Rs. 43,191 crore. The stock has fluctuated between Rs. 137.01 and Rs. 234.29 in the last 52 weeks. While down by nearly 31% in the last year, IREDA share price’s recent quarterly performance has again raised hopes about its long-term future.

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Analyst Outlook

50% of analysts on Moneycontrol recommend a ‘Buy’ rating for IREDA share price, while the other 50% gave it a ‘Hold’ rating. The company has a positive growth path in the next few quarters supported by the positive earnings expansion, steady government support for sustainable energy, and stable asset quality. Investors need to keep an eye on how the company performs financially in the coming months.

FAQs

1. Why was IREDA share price up today?

IREDA's share price rose close to 3.7% when the company announced a 42% YoY increase in standalone net profit for Q2 FY26. The robust earnings and consistent asset growth enhanced investor confidence in its long-term fundamentals.

2. What are IREDA's financial highlights for Q2 FY26?

In Q2 FY26, IREDA reported a net profit of Rs. 549 crore and total income of Rs. 2,057 crore, showing a 26% YoY growth. Its tax before profit increased to Rs. 696 crore, which is an indicator of operational efficiency and healthy loan growth.

3. How has IREDA dealt with its debt and fund-raising activities?

IREDA raised Rs. 453 crore during Q2 by way of perpetual bonds with zero defaults. Its borrowings total Rs. 69,939 crore, and it enjoys a healthy security cover of 2.61x for its NCDs, thus ensuring prudent debt management.

4. Is IREDA's asset quality a cause for concern among investors?

Although NPAs rose slightly, with GNPA at 1.37% and NNPA at 0.91%, the company maintains prudent provisioning. Overall, its asset quality remains stable considering the rapid expansion of its renewable energy loan portfolio.

5. Should investors buy IREDA shares now?

Experts now rate IREDA "Outperform," with half the weight between Buy and Hold suggestions. Based on its healthy earnings traction, government support, and focus on renewable energy, long-term investors can consider it a good PSU choice.