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IREDA stock closed at ₹160.77 on May 7, 2025, gaining 0.34%. However, it remains 48% below its 52-week high. Net profit jumped 49% YoY to ₹501 crore in Q4 FY25. Gross NPAs rose to 1.35%. The firm approved a ₹5,000 crore borrowing plan and joined the FTSE All World Index. Despite strong earnings, rising costs and asset quality issues raise concerns for investors.
Indian Renewable Energy Development Agency (IREDA), one of the major lenders in clean energy projects, is exhibiting strength and volatility in 2025. On May 7, 2025, as of 12.03 PM IREDA share price reached ₹160.77 up by 0.34%. It opened the day at ₹157.03, touched a high of ₹162.17, and fell to ₹156.55.
The stock had a trading volume of 7.74 million shares, with the turnover standing at ₹124.5 crore. The volume-weighted average price was ₹159.97. IREDA shares have a market of ₹43,238 crore, highlighting its position in India's green finance market.
Even though there was a slight gain today, IREDA stock has recorded sharp losses this year. In the last three months alone, it's down 14.7%. In six months, the decline is almost 21.9%. Year to date, it is down approximately 30%.
IREDA share price chart shows 0.45% as of 12.05 PM on May 7, 2025:
This decline is mainly on account of profit booking and correction in the renewable energy sector. After a good post-listing rally, the stock now finds itself well below its 52-week high price of ₹310. It, however, stays above its 52-week low price of ₹137.01. This indicates broad price fluctuations and investor wariness.
IREDA’s trailing twelve-month (TTM) earnings per share (EPS) are ₹6.32, a 35.7% year-on-year growth. The price-to-earnings (PE) ratio is 25.45. This is lower than other industry players, hinting at undervaluation.
The industry average PE is 12.69. IREDA's price-to-book (P/B) ratio is 4.64, on a book value per share of ₹34.74. Its beta is 1.50, implying greater-than-average volatility, which is consistent with recent price action.
During Q4 FY25, IREDA posted a strong 49% YoY increase in net profit to ₹501 crore. Profit before tax increased 31.3% to ₹630 crore. The growth indicates healthy lending in the renewable space.
Total expenses, however, are also increasing. Finance costs have specifically increased, indicating an aggressive borrowing strategy. Gross NPAs have risen to 1.35%, compared to 0.99% last year. This indicates mounting pressure from stressed assets.
IREDA sanctioned a ₹5,000 crore borrowing plan to increase clean energy lending. It will mobilize funds from bonds and foreign borrowings. With an AAA credit rating by CARE Ratings, IREDA can raise low-cost capital. It improves its lending strength. The company also got a place in the FTSE All-World Index. This adds more attention from international institutional investors.
IREDA operates in a very growing industry. In Q1 2025, India installed 13,495 MW of power capacity, close to 79% of which was from renewables. The government of India targets achieving 500 GW of renewable capacity by 2030. As a nodal agency to a number of green energy initiatives, IREDA stands well-placed to reap policy patronage and public sector finance.
IREDA share price resistance levels are ₹155 and ₹162. Support is around ₹140. A clean breakout above ₹170 could indicate a new uptrend. Even after recent volatility, experts are optimistic. Most have a ‘Buy’ rating with a target price of ₹265. This indicates a strong upside from here.
IREDA has significant risks. Gross NPAs are increasing. Its exposure to companies like Gensol Engineering can also impact asset quality. The Reserve Bank of India also thwarted IREDA's intended investment in a hydropower project in Nepal. It constrains its growth overseas. Volatility in the markets and asset pressure can impact short-term performance.
IREDA's share price performance in 2025 represents growth and uncertainty. Its long-term potential is indicated by growth in profit, plans for capital, and support from the government. However, threats such as escalating NPAs and market fluctuations warrant caution on the part of investors. For clean energy optimists looking to bet on India's future, IREDA remains a high-risk, high-potential green finance investment.
