IREDA Share Price: Why This Renewable Energy Stock Deserves Your Attention
As someone who’s tracked renewable energy stocks for years, I’ve seen countless companies rise and fall. But few have captured my curiosity like Indian Renewable Energy Development Agency (IREDA). Over the past year, IREDA Share Price has been on a rollercoaster—soaring to ₹310 in July 2024 before settling around ₹175 today. What’s driving this volatility? Is this a buying opportunity, or a warning sign? Let me walk you through the latest developments, financial insights, and my personal take on where this stock could head next.
IREDA Share Price: The Story So Far
IREDA’s journey from its IPO price of ₹32 to its current levels is nothing short of dramatic. As of June 2025, the stock trades at ₹175, down 19% year-to-date but still up over 5x from its debut. For context, this PSU (Public Sector Undertaking) specializes in financing renewable energy projects, making it a critical player in India’s green transition.
Here’s what’s shaping IREDA share price right now:
- Lock-In Expiry Shock (June 2025):
On June 2, 2025, 53.8 crore shares (20% of equity) worth ₹9,400 crore became eligible for trading. While this doesn’t guarantee a sell-off, the sheer volume spooked investors, causing a 1% dip. I’ve seen similar patterns in other PSUs—short-term volatility often follows unlocks, but strong fundamentals usually prevail. - Financial Firepower:
IREDA’s FY 2024-25 results were stellar:- Profit After Tax (PAT): ₹1,699 crore (up 36% YoY).Loan Book: ₹76,250 crore (28% growth).Net Interest Income (NII): 57% YoY surge in Q4.
- Strategic Moves:
- Raised ₹1,247 crore via perpetual bonds at 8.4% coupon.Secured ₹910 crore through Tier-II bonds.Locked in a 26 billion Japanese Yen ECB facility from SBI Tokyo.
Also Check: Understanding India VIX: My Guide to Navigating Market Volatility
Why IREDA Share Price Could Rebound
Let’s cut through the noise. While the lock-in expiry caused short-term jitters, here’s why I’m bullish long-term:
1. India’s Renewable Energy Ambitions
India aims for 500 GW of non-fossil fuel capacity by 2030. IREDA, as the largest green financing NBFC, is central to this mission. Every solar park or wind farm you see likely has IREDA’s backing.
2. Robust Financials
IREDA isn’t just growing—it’s profitable. Check out how key metrics stack up:
| Metric | FY 2024-25 | YoY Growth |
|---|---|---|
| Revenue | ₹6,742 Cr | 36% |
| Net Profit | ₹1,699 Cr | 36% |
| Loan Book | ₹76,250 Cr | 28% |
| Net Interest Income | ₹2,130 Cr | 57% |
With a P/E ratio of 27.7 and ROE of 18%, IREDA isn’t cheap, but quality rarely is.
3. Legal Battles: A Speed Bump, Not a Roadblock
IREDA’s ₹729 crore case against Gensol Engineering raised eyebrows. However, the company’s proactive approach—filing insolvency petitions and involving the Economic Offences Wing—shows it’s serious about risk management.
My Realistic Take: Should You Invest?
Here’s my unfiltered opinion after analyzing IREDA share price trajectory:
The Good:
- Monopoly Advantage: As a government-backed Navratna company, IREDA has unmatched access to low-cost capital and policy support.
- Sector Tailwinds: Renewable energy is a global megatrend. IREDA’s loan book could double by 2030.
- Margin Expansion: Net Interest Margins (NIM) hit 3.27% in FY25, up from 2.8% in FY24.
The Risks:
- Valuation Concerns: At 4.57x P/B, IREDA isn’t a bargain. Compare this to REC Ltd (P/B 1.2x) or PFC (1.5x).
- Asset Quality: While gross NPAs are low (~2%), the Gensol case highlights sector-wide risks in green financing.
- Interest Rate Sensitivity: Rising rates could squeeze margins.
My Verdict:
IREDA is a long-term play. If you believe in India’s renewable energy story and can stomach volatility, accumulate on dips below ₹160. For conservative investors, wait for clearer signals post-lock-in turbulence.
IREDA Share Price FAQs
Why did IREDA share price drop in June 2025?
The lock-in expiry of 53.8 crore shares created fears of oversupply. However, this is a temporary headwind.
What’s IREDA’s dividend policy?
IREDA hasn’t paid dividends since IPO, reinvesting profits into growth.
How does IREDA compare to PFC and REC?
IREDA focuses solely on renewables, while PFC/REC fund broader infrastructure. IREDA trades at a premium due to its niche.
Will IREDA hit ₹300 again?
Possible, but only with consistent loan book growth and stable interest rates. Analysts target ₹265.
The Bottom Line
IREDA share price story is far from over. While short-term volatility is inevitable, the company’s role in India’s energy transition makes it a compelling pick. As someone who’s navigated market cycles, I’d advise keeping this stock on your radar—especially if it dips below ₹160.
What do you think? Are you betting on IREDA’s comeback, or does the lock-in expiry scare you off? Let’s chat in the comments!
Disclaimer: This blog reflects my personal views and not financial advice. Always conduct your own research.
