New Delhi, April 15, 2025 –
Shares of Indian Renewable Energy Development Agency Ltd. (IREDA) rallied over 7% intraday as investors responded positively to the company’s impressive financial performance for FY25. With a significant jump in net profit, prudent asset quality, and aggressive green lending, IREDA is cementing its position as the go-to public sector lender for India’s clean energy transition.

📈 Financial Highlights: FY25 vs FY24

IREDA posted robust financials for the year ended 31st March 2025:

The net profit figure crossed the ₹1,600 crore mark for the first time, supported by a higher interest income base and stable credit quality despite a recalibrated risk weightage on assets. EPS also grew by over 22%, signaling strong value creation for shareholders.

📊 Visual Snapshot of Financial Growth

Why the Stock Jumped Over 7%?

Several key factors have contributed to the bullish momentum in IREDA’s share price:

1. Strong Earnings Beat:
   A 35% rise in net profit and consistent quarter-over-quarter performance shows that IREDA has found a stable and scalable lending model in the renewable energy domain.
2. Zero Default Status:
   As per disclosures, IREDA has reported zero defaults in the repayment of loans and debt securities, maintaining a clean track record with all principal and interest payments met on time.
3. Efficient Capital Utilization:
   The ₹1,290 crore raised from the public issue in FY24 has been fully utilized for “augmenting capital base and onward lending,” with no deviation reported. The funds were deployed effectively, contributing to the bottom-line growth.
4. Aggressive Fundraising & Lending:
   During the fourth quarter alone, IREDA raised ₹4,307.37 crore via private placement of non-convertible securities. This fresh capital has allowed the company to expand its renewable energy loan portfolio further.

💰 IPO Proceeds Fully Utilized – No Deviation

IREDA listed its equity shares on the BSE and NSE in November 2023. The net IPO proceeds of ₹1,259.80 crore (post-issue expenses) have been completely allocated towards expanding lending operations. There were no deviations from the stated objective, a move that boosts credibility among investors.

🧮 Prudent Risk Practices

While the company restated its CRAR for FY24 from 20.11% to 15.51% after applying 100% risk weight to operational renewable assets (previously 50%), the FY25 CRAR stands strong at 17.10%. This reflects conservative accounting and a commitment to regulatory compliance under RBI norms.

Additionally, impairment allowance for loan assets stood at ₹1,920.24 crore, with a provisioning coverage ratio of 45.11% on Stage III (NPA) assets — indicating sound credit risk controls.

🌍 Strategic Role in India’s Green Economy

IREDA continues to play a pivotal role in financing renewable energy and energy efficiency projects across India. All of the company’s business is conducted within India, and it currently does not report any geographical or segment-based diversification as per Ind AS 108.

By remaining sharply focused on green lending, IREDA is aligned with the government’s vision to accelerate India’s transition to sustainable and cleaner sources of energy.

Outlook

With high investor confidence, zero defaults, and increasing scale in renewable lending, IREDA is poised to benefit from:

• Government incentives for renewable projects
• Global ESG-focused capital inflows
• India’s ambitious renewable energy targets (500 GW non-fossil capacity by 2030)

The company’s aggressive fundraising in multiple tranches and timely deployment of capital demonstrate its preparedness to meet rising credit demand in the green energy space.

📢 Final Word

The 7% surge in IREDA’s share price is not a flash in the pan. It reflects deep market confidence in the company’s fundamentals, strategy, and clean energy mission. Backed by a strong financial year, robust loan book, and sound governance, IREDA has firmly positioned itself as a key financial pillar in India’s renewable future.