IREDA jumps 7% on robust Q4; PSU stock up 18% in 3 sessions

Shares of Indian Renewable Energy Development Agency (IREDA) rallied over 7% on Wednesday after the state-owned company reported robust earnings for the fourth quarter ended March 31, 2025. IREDA shares have maintained uptrend for three sessions, adding over 18% amid hopes of strong Q4 results.

Continuing its gaining streak, IREDA shares jumped as much as 7.4% to ₹179.50 on the BSE, extending previous session rally of 8.4%. Early today, the NBFC stock opened higher at ₹175.75 against the previous closing price of ₹167.10.  

The PSU stock has witnessed sharp correction in the recent past, slipping to its 52-week low of ₹137 on March 17, 2025, plummeting as much as 87.5% from its 52-week high of ₹310 on July 15, 2024. With a current market capitalisation of ₹47,200 crore, the stock has lost 20% of its market value in the calendar year 2025, while the stock has rebounded over 25% in the past one month.

Q4 profit jumps 49%, revenue up 37%

IREDA, a financial services company focused to renewable energy sector, has clocked a 49% year-on-year (YoY) growth in its net profit at ₹337.39 crore in the Q4 of FY25. The PSU company's revenue from operations surged climbed 37% to ₹1,905.06 crore as compared to the same period last year. The interest income earned during the reported surged 40% YoY to ₹1,861.14 crore. 

On the asset quality front, net non-performing asset (NPA) rose to 1.35% in Q4 FY25, from 0.99% in the same quarter last year, while it declined sequentially from 1.5% in Q3 FY25. Gross NPA margin stood at 2.45% during the quarter under review.

For the full financial year 2024-25, IREDA logged its highest-ever profit after tax (PAT) of ₹1,699 crore, up 36% over the previous fiscal, while revenue from operations also surged 36% to ₹6,742 crore.

As of March 31, 2025, the "Navratna" PSU’s net worth stood at ₹10,266 crore, up 20% YoY, while its total loan book surged 28% YoY to ₹76,250 crore. The company sanctioned loans jumped 27% to ₹47,453 crore, while loan disbursements grew 20% to ₹30,168 crore.

Last month, IREDA raised ₹910.37 crore via privately placed subordinated tier-ii bonds for 10 years at a 7.74% annual coupon. The board of the PSU company also approved ₹30,800 crore borrowing plan for FY26. As per the company, the fundraising aims to capitalise on market liquidity and align with the borrowing plan approved by its board.

IREDA’s Board had earlier approved the fundraising plan on January 23, 2025, which includes the dilution of the Government of India’s shareholding in the company by up to 7% post-issue equity, in one or multiple tranches.

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