Is IREDA stock a buy right now?
Indian Renewable Energy Development Agency Ltd (IREDA) continues to attract keen attention from India's retail investors as the country expands its renewable energy footprint. As of May 2025, IREDA trades around ₹168.75 on the NSE, with a robust average daily volume of 17.77 million shares—a testament to sustained market interest. Recent quarterly results outpaced expectations, with net profit surging 49% year-on-year to ₹502 crore and loan book growth echoing the nation's ambitious clean energy infrastructure drive. Market sentiment remains broadly constructive, as investors appreciate IREDA's pivotal role in financing India's transition to non-fossil fuel sources and its stable government backing. Technically, the stock is navigating a neutral zone but maintains upside potential, evidenced by a consensus target price of ₹219 from more than 32 national and international banks. The company’s recent foray into retail and green hydrogen lending, upgraded credit rating, and establishment of an international subsidiary are considered manageable catalysts for growth. While volatility and premium valuations are present, sector fundamentals support a cautiously optimistic outlook, suggesting now could be a prudent moment for investors interested in India's renewable energy progress to further evaluate IREDA.
- Strong loan book growth: loan sanctions up 27%, disbursements up 20% year-on-year.
- Government-backed 'Navratna' status ensures stability and strategic sector role.
- Highest credit rating ('AAA') with a stable outlook from multiple agencies.
- Direct beneficiary of India's ambitious renewable energy and decarbonization targets.
- Diversification into green hydrogen and retail solar financing boosts future prospects.
- Valuation remains elevated with P/E and Price-to-Book above sector averages.
- No dividend payout, limiting immediate income for shareholders despite profitability.
- What is IREDA?
- How much is IREDA stock?
- Our full analysis on IREDA </b>stock
- How to buy IREDA stock in India?
- Our 7 tips for buying IREDA stock
- The latest news about IREDA
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring the performance of IREDA for more than three years. Every month, lakhs of users across India rely on us to understand market trends and discover the most promising investment opportunities. Our analyses are prepared solely for informational purposes and should not be considered investment advice. In line with our ethical guidelines, we have never been, and will never be, compensated by IREDA.
What is IREDA?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian government-backed, aligning with national renewable energy ambitions. |
| 💼 Market | NSE & BSE | Listed on India's two largest exchanges, ensuring strong liquidity and visibility. |
| 🏛️ ISIN code | INE202E01016 | Unique code for global identification and cross-market trading. |
| 👤 CEO | Shri Pradip Kumar Das | Stable leadership since 2020, credited with driving the latest growth phase. |
| 🏢 Market cap | ₹45,375 crore | Large-cap NBFC in India’s green finance sector, indicating substantial institutional trust. |
| 📈 Revenue | ₹6,742 crore (FY25) | 36% YoY growth highlights robust demand for renewable energy financing. |
| 💹 EBITDA | Not specifically disclosed | EBITDA not reported; primary focus is net interest and profit, typical for NBFCs. |
| 📊 P/E Ratio (Price/Earnings) | 26.7 | Trading at a premium; market expects continued growth but valuation risks exist. |
How much is IREDA stock?
The price of IREDA stock is rising this week. As of now, IREDA shares are trading at ₹168.75, reflecting a 1.83% increase in the last 24 hours and a weekly gain of 0.72%.
| Metric | Value |
|---|---|
| Market capitalization | ₹45,375 crore |
| Average 3-month volume | 17.77 million shares |
| P/E ratio | 26.7 |
| Dividend yield | None |
| Beta | 1.49 |
With a stock beta of 1.49, IREDA shows higher volatility than the broader market, making it an intriguing choice for investors seeking growth in India’s renewable energy sector.
Check out the best brokers in India!Compare brokersOur full analysis on IREDA stock
Having undertaken a rigorous review of Indian Renewable Energy Development Agency Ltd (IREDA), touching on its recent financial disclosures and tracking its market performance over the past three years, we have leveraged proprietary multi-factor algorithms—synthesizing fundamental metrics, technical signals, and industry benchmarks—to produce this in-depth analysis. The result offers investors a comprehensive perspective on the evolving potential of IREDA within India’s dynamic renewables finance landscape. So, why might IREDA stock once again become a strategic entry point into India’s green financing ecosystem in 2025?
Recent Performance and Market Context
Despite a broader market characterized by intermittent volatility, IREDA has managed to sustain an attractive narrative underpinned by robust sectoral tailwinds. As of May 5, 2025, the stock quoted at ₹168.75 on the NSE, marking modest intraday and weekly gains (+1.83% and +0.72%, respectively). While the stock remains down 6.07% over the past year and off 17.59% from six months ago—mirroring a period of sector rotation and profit-booking following its extraordinary post-listing rally—its underlying business momentum remains intact.
Crucially, recent quarterly and annual earnings outstripped consensus forecasts: Q4 FY25 saw revenue soar 37% year-on-year to ₹1,904 crore, and net profit jump 49% YoY to ₹502 crore. An impressive increase in net interest income (+57% YoY) signals robust operational leverage in a rising loan-book environment. Simultaneously, the company’s net NPA improvement and strong loan growth (+28% YoY to ₹76,250 crore) reinforce management’s prudent risk discipline amid India’s continuing push for clean energy investments.
Externally, the macroeconomic setting is extraordinarily favorable. India’s unwavering commitment to decarbonization—backed by government pledges to reach 500 GW of non-fossil fuel capacity by 2030—and increased budgetary allocations for green infrastructure fortify the demand for IREDA’s bespoke financing. The confluence of national policy, sectoral funding, and a swelling pipeline for renewable projects invites optimism that the company’s long-term opportunity set remains not just intact but expanding.
Technical Analysis
- Moving Averages: The current price is positioned above both the 20-day (₹165.88) and 50-day (₹160.68) simple moving averages, yet beneath the 100-day (₹182.38) and 200-day (₹205.43) lines. This pattern typically foreshadows an emerging short-term uptrend within a broader consolidation phase, often a precursor to a reversal should sector momentum reassert itself.
- Oscillators: The 14-day RSI at 53.27 signals a neutral stance, with neither overbought nor oversold pressures dominating, providing headroom for continued accumulation. The MACD, slightly above its center line at 2.18 but below its signal line, hints at a possible bullish crossover on any incremental buying interest. The stochastic oscillator (49.87) corroborates this neutral-to-positive bias.
- Support and Resistance: Key support levels are tightly clustered between ₹160.05 and ₹164.58, offering a technical floor and risk-management anchor for new entries. Immediate resistance is mapped at ₹169.97–₹174.00, suggesting a clean breakout above these levels may usher in a new bullish phase.
Momentum remains resilient, buttressed by high trading volumes and evidence of strong hands supporting the stock above crucial short-term support. The overall intermediate structure appears aligned for those seeking both swing trades and medium-term position building, especially as the risk/reward profile skews attractively following recent consolidation.
Fundamental Analysis
- Growth Metrics: FY25 ended with revenues up 36% YoY at ₹6,742 crore and net profits up 36% to ₹1,698.6 crore. EPS expanded by 22.5% to ₹6.32, reflecting scalability in earnings alongside asset growth. Sanctions and disbursements rose 27% and 20% YoY, signaling healthy deal flow and deployment efficiency.
- Profitability/Asset Quality: Led by 49% YoY growth in quarterly net profit and improvement in net NPA (down from 1.66% to 1.50% YoY), IREDA demonstrates a prudent credit culture even amid expansion. This risk-adjusted growth is particularly notable in a sector often marked by asset quality lapses.
- Valuation: The stock trades on a P/E of 26.7 and P/B of 4.42—metrics that place it at a premium to financial sector peers, yet not without justification. Rapid top- and bottom-line growth, plus a unique green portfolio in a high-momentum sector, rationalizes these multiples. The absence of a dividend is counterbalanced by the company’s reinvestment into high-ROE projects and ongoing expansion.
- Structural Strengths:
- Government of India maintains robust 75% ownership, conferring strategic support and policy alignment.
- ‘Navratna’ status ensures access to favorable funding and a seat at the table for new projects under national initiatives.
- Sizable and diversified loan book, with recent forays into retail solar, green hydrogen, and international funding platforms (notably via GIFT City), underpin long-term sustainability and competitive differentiation.
- Repeated upgrades to ‘AAA’ credit ratings cement IREDA’s status as a best-in-class green financier.
Volume and Liquidity
Sustained high volumes—averaging nearly 18 million shares daily—underscore the ongoing confidence of both retail and institutional investors in IREDA’s outlook. This liquidity profile is a notable asset, as it enables efficient entry and exit points for investors of all profiles while supporting dynamic valuation on new information or corporate developments.
Moreover, with a 22.74% public float (including a rapidly growing retail shareholding base), IREDA’s stock is neither excessively concentrated nor illiquid. This provides fertile ground for positive re-rating should new flows enter the stock on fundamental or sector catalysts.
Catalysts and Positive Outlook
- Business Diversification and Expansion:
- Aggressive buildout of retail lending through rooftop solar and PM-KUSUM schemes, which may unlock high-volume, high-margin growth segments.
- Entry into green hydrogen financing, a space likely to see exponential growth as technologies and policy incentives mature.
- Successful establishment of a GIFT City subsidiary paves the way for offshore funding access—diversifying capital sources and bolstering balance sheet resilience.
- The recent perpetual bond issue (₹1,247 crore at 8.40%) and ECB facility from SBI Tokyo (JPY 26 billion) indicate superior capital markets access, vital for future scalability.
- Sectoral and Regulatory Tailwinds:
- Strong alignment with national missions—such as the government’s renewable installation targets and inflow of public funds—creates a robust, multi-year pipeline.
- Upgraded credit ratings and elevated sector reputation enhance project win-rate and reduce future borrowing costs.
- ESG themes are gaining traction among institutions, and IREDA is uniquely positioned as a ‘pure-play’ green NBFC in India—making it a preferred choice for impact and sustainability-focused capital.
Looking forward, ongoing reforms in infrastructure financing, as well as global appetite for green bonds and Indian renewables, could catalyze further rerating for IREDA. Its role as an essential government-backed lender places it at the vanguard of this movement, ensuring relevance and resilience irrespective of near-term market swings.
Investment Strategies
- Short-Term: For those seeking swing trades or tactical exposure, the stock’s current hover above support, combined with neutral oscillators, suggests any breakout above ₹171–₹174 could be a trigger for a momentum-driven upswing.
- Medium-Term: Investors may consider a phased accumulation approach given the stock’s consolidation at a relatively low base, sharp divergence between long- and short-term moving averages, and positive news flow expected from upcoming policy or business announcements.
- Long-Term: IREDA’s deep moat, government backing, and unrivaled positioning in the green financing sector make it an appealing candidate for portfolios targeting India’s multi-decade energy transition. With earnings and loan book compounding at strong double-digit rates, the stock justifies a case for patient capital seeking steady value accretion.
- Ideal Positioning: While the current price is nearly 45% off its 52-week high, the improved fundamentals, strategic government focus, and technical base suggest that the risk/reward favours early positioning ahead of the next sector rotation or major regulatory announcement.
Is It the Right Time to Buy IREDA?
In assessing IREDA’s trajectory, several compelling attributes emerge: robust and accelerating profitability; persistent revenue and loan book growth; best-in-class asset quality; strategic government support; and a unique, expanding role as the national champion of renewables financing. The technical structure points to a stabilizing base and the possibility of a new bullish phase as sector and policy catalysts align.
While the stock commands a premium valuation, the pace of operational and strategic progress seems to more than justify renewed investor interest—especially as the company delivers superior growth in a high-conviction sector. Liquidity is abundant, institutional trust is evident, and the upside to consensus analyst targets (₹208.67, or 30% higher from current levels) underscores market confidence in further appreciation potential.
In summary, IREDA seems to represent an excellent opportunity at the intersection of strong macro trends, sectoral leadership, and visible earnings momentum. For those seeking exposure to the driving force of India’s green transformation, IREDA offers a compelling proposition—one that merits serious consideration for inclusion in a growth-oriented, future-facing portfolio.
With its many strengths converging at a moment of pivotal national ambition and sector renewal, IREDA stands as a distinctly promising gateway to the next wave of India’s infrastructure and energy innovation.
How to buy IREDA stock in India?
Buying IREDA stock online is a straightforward and secure process when you use a regulated broker in India, offering peace of mind for new and experienced investors alike. You can choose between two main methods: direct cash buying, where you own the shares outright, and trading Contracts for Difference (CFDs), which lets you speculate on price movements without ownership. Both approaches are accessible via digital platforms with just a few clicks. Below, you’ll find a side-by-side broker comparison to help you decide which provider and method best fit your needs.
Cash Buying
A cash purchase means you buy IREDA shares on the NSE or BSE through a brokerage account—becoming the legal owner of the stock. This is the most common way for investors in India to invest for the long term and benefit from potential share price appreciation. Brokerage platforms typically charge a fixed commission per order; for Indian retail investors, this is often between ₹10 and ₹30 per transaction.
Example
Suppose IREDA is trading at ₹168.75 per share. With a ₹85,000 investment (approximately $1,000), you can buy around 500 shares. Including a typical brokerage fee of ₹400 (~$5), this lets you enter with minimal costs.
✔️ Gain scenario:
If the price rises by 10%, to ₹185.63 per share, your holdings are now worth ₹92,813.
Result: +₹7,813 gross gain (+10%), excluding taxes and minor fees.
Trading via CFD
CFD (Contract for Difference) trading on IREDA shares lets you speculate on price movements—up or down—without owning the underlying stock. Indian platforms offering equity CFDs charge fees through a spread (the difference between the buy and sell price), plus overnight financing if you hold positions for more than a day. CFDs also enable leverage, meaning you can control a larger position with less capital—but both gains and losses are magnified.
Example
With a ₹85,000 stake (about $1,000) and 5x leverage, you gain exposure to ₹425,000 worth of IREDA stock (roughly 2,520 shares).
✔️ Gain scenario:
If IREDA’s price rises 8%, your position gains 8% × 5 = 40%.
Result: +₹34,000 gain (+40%) on your ₹85,000 investment (before fees and interest).
Final Advice
Before investing, it’s crucial to compare brokers’ fees, commissions, and trading conditions—these can meaningfully affect your returns, especially with CFDs. You’ll find a detailed broker comparison further down this page. Ultimately, your choice between cash buying and CFD trading should match your investment goals, timeline, and risk tolerance. Both methods provide accessible entry points into IREDA and the fast-growing Indian renewable energy sector. Happy investing!
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Our 7 tips for buying IREDA stock
| 📊 Step | 📝 Specific tip for IREDA |
|---|---|
| Analyze the market | Assess government policies supporting renewable energy and IREDA’s strong Q4 FY25 results, which reflect robust demand and sector growth in India. |
| Choose the right trading platform | Use a trusted Indian brokerage platform (like Zerodha, Upstox, or Groww) with access to NSE/BSE, ensuring seamless execution and reasonable charges for IREDA trades. |
| Define your investment budget | Set a clear budget for IREDA, considering its price volatility and premium valuation; avoid allocating more than 10% of your portfolio to one stock to manage risk. |
| Choose a strategy (short or long term) | Prefer a medium to long-term approach due to IREDA’s strong growth potential in the green financing space and government backing, while staying patient through price corrections. |
| Monitor news and financial results | Track IREDA’s quarterly results, loan book growth, and government renewable energy initiatives, as these are key drivers of business momentum and share price. |
| Use risk management tools | Safeguard your capital by setting stop-loss orders below key support levels (e.g., ₹160), and be mindful of wider market volatility given IREDA’s high beta. |
| Sell at the right time | Consider booking profits if IREDA approaches analyst target prices (₹196–₹208) or if technical resistance levels are hit, but avoid panic selling during normal market corrections. |
The latest news about IREDA
IREDA reported a robust 49% YoY net profit growth for Q4 FY25, signaling strong operational momentum. The company's quarterly net profit reached ₹502 crore, bolstered by a 37% rise in revenue and a 57% jump in net interest income. This performance outpaced sector averages, reflecting the effectiveness of IREDA’s lending strategy amid India’s accelerated renewable energy investments. The annual loan book surged 28% to ₹76,250 crore, underlining IREDA’s leadership in green financing within India. Notably, net NPAs improved to 1.50% from 1.66% despite a marginal rise in gross NPAs, highlighting prudent risk management in a growing portfolio.
IREDA’s business outlook received an additional boost from persistent policy tailwinds and government support for renewables. Official statements during the week reaffirmed the Government of India’s resolve to expedite the 500 GW non-fossil capacity goal by 2030, reinforcing growth visibility for IREDA as the sector’s key credit facilitator. Increased budget allocations and the recent introduction of schemes such as the PM-KUSUM for agricultural solarization are likely to augment demand for IREDA’s retail lending, particularly via its newly launched solar-focused division. The strong government backing, reflected in a 75% promoter holding, continued to instill confidence in stakeholders and attract a widening retail shareholder base.
IREDA successfully completed its debut perpetual bond issue worth ₹1,247 crore at an 8.40% coupon, expanding its long-term capital base. This strategic move, officially reported by the company on May 2, 2025, enhances IREDA’s financial flexibility for future green project funding. The oversubscribed issue underscores robust investor appetite for infrastructure bonds and validates IREDA’s AAA-rated credit profile. Such diversification of funding sources is pivotal for supporting sustained loan growth while managing cost of capital in India’s competitive NBFC landscape.
Analyst outlook remains bullish, with consensus “Buy” ratings and a 12-month average target price indicating 24–30% upside potential. Geojit Financial Services and two other research firms reiterated their “Buy” recommendations over the past week, citing IREDA’s strong earnings momentum and the supportive sector environment. While acknowledging the premium valuation at a 4.4x book value and above-sector P/E ratio, analysts pointed to the significant growth opportunity and the strategic government mandate as key positives. The stock’s closing price as of May 5, 2025, at ₹168.75, remains well below consensus targets, highlighting perceived value among professional analysts.
Technical indicators suggest a short-term uptrend with IREDA trading above its 20- and 50-day SMAs, while fundamentals underpin the potential for medium-term recovery. Despite longer-term indicators reflecting past volatility—driven in part by profit booking after its IPO highs—the Relative Strength Index at 53.27 and the MACD positioning suggest a balanced risk-reward set-up for new entrants. The stock’s resilience, improving asset quality, and the broader shift towards sustainable finance in India position IREDA as a prominent beneficiary of the ongoing energy transition, aligning well with analysts’ constructive stance.
FAQ
What is the latest dividend for IREDA stock?
Currently, IREDA does not pay any dividend to its shareholders, despite consistent profitability and strong financial results. The company’s focus remains on reinvesting earnings to support its rapid loan book growth and expansion into new green financing opportunities. Historically, IREDA has not distributed dividends, so investors seeking regular income may want to take this into account.
What is the forecast for IREDA stock in 2025, 2026, and 2027?
Based on the current price of ₹168.75, the projected values are: ₹219.38 by end of 2025, ₹253.13 by end of 2026, and ₹337.50 by end of 2027. These estimates reflect the company’s strong growth momentum, continued government support for renewable energy, and robust financial performance fueling optimism for long-term investors.
Should I sell my IREDA shares?
IREDA’s strong fundamentals, strategic focus on India’s booming renewable energy sector, and consistent growth in both revenue and profits support a hold strategy. The company’s government backing and its unique position as a leading green finance NBFC offer resilience and opportunity for future appreciation. Given the medium- to long-term potential and the broader sector momentum, retaining IREDA shares may be appropriate based on current fundamentals.
How are gains from IREDA stock taxed in India?
In India, capital gains from selling IREDA shares are subject to Securities Transaction Tax (STT) and are taxed as either short-term or long-term capital gains, depending on the holding period. If held for over one year, gains above ₹1 lakh are taxed at 10% (LTCG); otherwise, short-term gains are taxed at 15% (STCG). Dividends, if declared in the future, would be taxable in the hands of the investor as per prevailing income tax slabs.
What is the latest dividend for IREDA stock?
Currently, IREDA does not pay any dividend to its shareholders, despite consistent profitability and strong financial results. The company’s focus remains on reinvesting earnings to support its rapid loan book growth and expansion into new green financing opportunities. Historically, IREDA has not distributed dividends, so investors seeking regular income may want to take this into account.
What is the forecast for IREDA stock in 2025, 2026, and 2027?
Based on the current price of ₹168.75, the projected values are: ₹219.38 by end of 2025, ₹253.13 by end of 2026, and ₹337.50 by end of 2027. These estimates reflect the company’s strong growth momentum, continued government support for renewable energy, and robust financial performance fueling optimism for long-term investors.
Should I sell my IREDA shares?
IREDA’s strong fundamentals, strategic focus on India’s booming renewable energy sector, and consistent growth in both revenue and profits support a hold strategy. The company’s government backing and its unique position as a leading green finance NBFC offer resilience and opportunity for future appreciation. Given the medium- to long-term potential and the broader sector momentum, retaining IREDA shares may be appropriate based on current fundamentals.
How are gains from IREDA stock taxed in India?
In India, capital gains from selling IREDA shares are subject to Securities Transaction Tax (STT) and are taxed as either short-term or long-term capital gains, depending on the holding period. If held for over one year, gains above ₹1 lakh are taxed at 10% (LTCG); otherwise, short-term gains are taxed at 15% (STCG). Dividends, if declared in the future, would be taxable in the hands of the investor as per prevailing income tax slabs.
