.png){kind=logo}
IREDA stock drops 4.69% to ₹161.89 as Q1 results reveal a sharp rise in gross NPAs from 2.45% to 4.13% and net profit falls 35% YoY.
Loans to Gensol Engineering worth ₹730 crores and another ₹783 crores borrower turning NPA. Thus, driving Stage 3 assets up by 77% QoQ.
Despite asset stress, IREDA trades at a TTM PE of 26.75 and P/B of 4.81, with analysts split between 'Buy' and 'Hold' recommendations.
Indian Renewable Energy Development Agency (IREDA) shares are trading at ₹161.89 on July 11, 2025. It is a decline of 4.69% from the previous close of ₹169.64 as of 11:55 AM on July 11, 2025. The share dipped following disappointing Q1 results that highlighted deterioration in asset quality and an increase in stressed assets.
The stock opened at ₹161.00 and has fluctuated between a high of ₹163.55 and a low of ₹159.80 during the trading session. With a substantial trading volume of 28,632,515 shares worth ₹46,341.73 lakhs, the stock is experiencing heightened investor activity.
The renewable energy financing company's market capitalization stands at ₹45,467 crores. IREDA stock is trading well below its 52-week high of ₹310.00 and all-time high of ₹310.00. However, the current price remains above the 52-week low of ₹137.01, indicating some resilience despite recent challenges.
The primary catalyst for IREDA's share price decline is the decreasing asset quality reported in the June quarter results. The company's gross non-performing assets (NPA) worsened dramatically to 4.13% from 2.45% in the March quarter. Net NPAs also deteriorated, rising to 2.06% from 1.35% in the previous quarter.
A major driver for this decline was the recognition of loans to Gensol Engineering, totaling approximately ₹730 crores, as NPAs. Additionally, another borrower with an exposure of ₹783 crores shifted from Stage II asset classification to NPA status. Thus, further straining the company's asset quality metrics.
The impact of these asset quality issues is evident in IREDA's Stage 3 assets, which increased by 77% from the previous quarter to ₹3,302 crores. This rise in stressed assets has raised concerns among investors about the company's loan portfolio management and future profitability.
Also Read: Vedanta Shares Drop 1.4% After Viceroy Report: Will Today’s AGM Shift Sentiment?
IREDA stock’s financial performance reflected the asset quality challenges. The net profit was down by 35% year-over-year to ₹247 crores in the June quarter. More concerning was the sequential comparison, where net profit halved compared to the March quarter. Thus, highlighting the immediate impact of increased provisions on profitability.
The company's provisions for the quarter increased by over 180% on a quarter-on-quarter basis to ₹363 crores, up from ₹129 crores in the March quarter. This dramatic increase in provisions directly impacted the bottom line and reflects management's conservative approach to recognizing potential losses from stressed assets.
Despite the current challenges, IREDA shares’ valuation metrics suggest the stock is priced at a premium. With a TTM PE ratio of 26.75 and a P/B ratio of 4.81, both considered low relative to growth potential, the stock trades at a discount to its historical averages. The company's TTM EPS of ₹6.05 represents a healthy 29.86% year-over-year growth.
Analyst sentiment remains cautiously optimistic, with 50% rating the stock as ‘Buy’ and 50% suggesting ‘Hold.’ This mixed outlook reflects the balance between IREDA's long-term growth potential in the renewable energy sector and near-term asset quality concerns.
IREDA share price chart shows a decline of 4.86% as of 12.31 AM:
The company’s recent results highlight the inherent risks in project financing, particularly in the renewable energy sector. After all, it is where technological and execution risks can impact borrower performance.
IREDA shares are trading at ₹161.89 against a book value per share of ₹33.67. It means that investors are paying a premium for the company's growth prospects. The 20-day average volume of 18,772,180 shares indicates sustained investor interest. Meanwhile, the current high trading volume suggests active repositioning in response to the results. Investors should watch out for the upcoming developments before mankind any financial decisions.
Also Read: Stock Market Today: Vedanta Shares Fall Over 3%, TCS, LIC, HDFC Life Also Under Pressure
1. What is the share price of IREDA today?
IREDA shares are trading at ₹161.89 as of 11:55 AM on July 11, 2025, down 4.69% from the previous close of ₹169.64. The stock opened at ₹161.00 and has traded between ₹159.80-₹163.55 during the session.
2. Is IREDA undervalued or overvalued?
IREDA appears moderately valued with a TTM PE of 26.75 and P/B ratio of 4.81, both considered reasonable for a growing renewable energy financier - however, recent asset quality deterioration and increased NPAs present near-term valuation risks despite long-term sector growth potential.
3. Who owns IREDA share?
IREDA is a government-owned enterprise under the Ministry of New and Renewable Energy, Government of India. The company went public through an IPO, with retail and institutional investors holding tradable shares, while the government maintains a majority control of the renewable energy financing institution.
4. How much has IREDA stock price dropped?
IREDA shares have declined 4.69% today to ₹161.89 from ₹169.64 yesterday. The stock is trading 47.8% below its 52-week high of ₹310.00 and 18.1% above its 52-week low of ₹137.01, reflecting significant volatility over the past year.
5. Why is IREDA share price declining?
IREDA's share price is declining due to deteriorating asset quality in Q1 results, with gross NPAs rising to 4.13% from 2.45% and net profit falling 35% year-over-year. Recognition of ₹730 crores Gensol Engineering loans as NPAs and a 180% increase in provisions are key concerns.
