A leading renewable energy financing institution has shown remarkable performance, with impressive growth across its operations in the past year. The company’s outstanding achievements include more than doubling its loan sanctions, significant increases in disbursements, and substantial expansion of its loan portfolio, demonstrating its strengthening position in the sustainable energy sector.
Share Price Movement
The share price of Indian Renewable Energy Development Agency (IREDA) Limited reached an intraday high of 5.76 percent to Rs. 227.65 per share on Tuesday, an increase from its previous close of Rs. 215.25 per share. The market capitalisation now stands at approximately Rs. 59,934 crore as of January 01, 2025.
Share Price Surge: Why?
IREDA demonstrated significant growth across all key areas compared to the previous year. Loan sanctions increased by 129%, reaching Rs. 31,087 crore from Rs. 13,558 crore in 2023. Loan disbursements grew by 41%, rising to Rs. 17,236 crore from ₹12,220 crore, and the total loan book expanded by 36% to ₹69,000 crore from Rs. 50,580 crore. These figures indicate strong business momentum and substantial expansion in IREDA’s lending activities.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, the Indian Renewable Energy Development Agency’s (IREDA) interest income has increased by 36.78 percent YOY from Rs. 1,152.96 crore in Q2 FY24 to Rs. 1,577.04 crore in Q2 FY25 and increased by 6.36 percent QoQ from Rs. 1,482.75 crore in Q4 FY24.
The company’s consolidated net NPA has decreased by 5 percent, from Rs. 1,486 crore in Q2 FY24 to Rs. 1,415 crore in Q2 FY25. As compared to the H1 of FY25, the company’s loan book has grown by 36% percent from Rs. 47,514 crore to 64,564.
Also read….
Market Outlook
The Indian financial sector is poised for robust growth. The mutual fund industry’s AUM has surged nearly sixfold in a decade, reaching Rs. 64.97 trillion by July 2024. Insurance investments could hit $1 trillion by 2025. With over 2,100 fintechs driving digital adoption, India is set to become a major digital market.
Innovations like digital gold, CBDC (Digital Rupee), and increased FDI in insurance are enhancing market dynamics. The sector leverages diverse channels, ensuring broader access to financial services.
Shareholding Pattern
As of the September 2024 shareholding pattern, Indian Renewable Energy Development Agency (IREDA) Limited is primarily held by the promoters at 75 percent, foreign institutional investors hold 2.02 percent, and the public with 22.62 percent.
About Company
IREDA, established in 1987, is a government-owned entity under the Ministry of New and Renewable Energy (MNRE) in India. Recognised as a Mini Ratna (Category-I) company, it plays a key role in financing renewable energy projects. Operating as a Non-Banking Financial Institution (NBFC), IREDA offers financial products like project term loans, refinancing, and loan syndication to support public sector units, private companies, and non-banking financial firms in renewable energy.
With strong governmental backing and a focus on sustainability, IREDA is driving India’s transition to clean energy and reinforcing its position as a global leader in renewable energy.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
