Indian Renewable Energy Development Agency Ltd. (IREDA) AI Stock Analysis

• Market Cap: ₹326.01B
• Dividend Yield: N/A
• Average Volume (3M): 892.38K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 2.19
• Revenue Growth: 33.44%
• EPS Growth: 17.49%
• Country: IN
• Employees: 160
• Sector: Energy
• Sector Strength: 52
• Industry: Financial - Credit Services
• EPS (TTM): 2.00
• Shares Outstanding: 2,809,231,200
• 10 Day Avg. Volume: 847,756
• 30 Day Avg. Volume: 892,382
• PEG Ratio: 1.13
• Price to Book (P/B): 4.21
• Price to Sales (P/S): 6.52
• P/FCF Ratio: -2.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹180.00
• Price Target Upside: 55.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 7.2
• Revenue Forecast (FY): ₹35.00B

• Rating: 62 Neutral
• Price Target: ₹123.00 ▲(5.99% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

The overall stock score of 62 reflects strong profitability and revenue growth, offset by high leverage and negative cash flows. Technical indicators suggest a neutral trend, and the valuation is moderate. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Sustained ~29% revenue growth reflects expanding loan disbursements and strong demand for renewable project financing. Over 2-6 months this implies a growing interest income base, improving scale economics and enabling reinvestment into origination, underwriting capacity, and fee businesses.

Government-backed mandate

State ownership and a clear public mandate provide structural advantages: preferential policy access, pipeline visibility, and likelihood of government support in stress. This enhances long-term funding access, counterparty confidence, and deal flow for renewable financing.

High profitability margins

Robust gross and net margins indicate durable interest spreads and fee income strength from project finance. Sustainable profitability helps absorb credit losses, supports capital accumulation, and underpins the agency's ability to scale lending without immediate equity dilution.

Negative Factors

High leverage

A high debt-to-equity ratio signals material leverage and dependence on borrowed funds. Over months this raises refinancing and interest-rate sensitivity, constrains capital flexibility, and increases vulnerability to funding stress or rising market rates that could pressure margins and solvency metrics.

Negative cash flows

Negative operating and free cash flow indicate the core lending business is not yet self-financing. Reliance on external funding to cover operations and growth creates liquidity risk, makes the firm sensitive to market funding conditions, and may require continued debt or government support.

Margin volatility

Fluctuating operating margins suggest variability in operating efficiency or funding costs. Persisting volatility undermines predictability of earnings and cash generation, complicates capital planning and provisioning, and can magnify the impact of leverage during adverse cycles.

Indian Renewable Energy Development Agency Ltd. Business Overview & Revenue Model

Company Description

Indian Renewable Energy Development Agency Limited, a non-banking financial company, provides financial products and services in the renewable energy and energy efficiency sectors in India. It operates in two segments, Financing and Generation. The company promotes, develops, and extends financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation. It also generates solar, wind, hydro, and waste to energy power. The company was incorporated in 1987 and is based in New Delhi, India.

How the Company Makes Money

IREDA generates revenue primarily through interest income from loans and advances provided to renewable energy projects. The company finances various projects by offering loans with competitive interest rates, which are repaid over time, generating a steady stream of income. Additionally, IREDA earns fees for consultancy services, project appraisals, and technical assistance provided to developers and investors in the renewable sector. The agency also benefits from government schemes and incentives designed to promote renewable energy, which can enhance its financial stability. Partnerships with other financial institutions and collaborations with international organizations further contribute to its revenue, enabling IREDA to expand its funding capabilities and support a wider range of projects.

Indian Renewable Energy Development Agency Ltd. Financial Statement Overview

Summary

Indian Renewable Energy Development Agency Ltd. demonstrates strong profitability and revenue growth, but faces challenges with high leverage and negative cash flows. The company should focus on improving cash flow management and reducing debt levels to enhance financial stability.

Income Statement

The company shows strong profitability with high gross and net profit margins. Revenue growth is positive, indicating a healthy upward trajectory. However, the EBIT and EBITDA margins have shown some fluctuations, which could indicate potential volatility in operating efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, which suggests significant leverage and potential risk if interest rates rise. However, the return on equity is decent, indicating effective use of equity to generate profits. The equity ratio is relatively low, reflecting a higher reliance on debt financing.

Cash Flow

The cash flow situation is concerning with negative operating and free cash flows, indicating potential liquidity issues. The free cash flow to net income ratio is stable, but the negative growth in free cash flow suggests challenges in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	62.08B	66.19B	48.38B	33.43B	27.80B	25.56B
Gross Profit	59.00B	43.10B	27.52B	21.01B	20.26B	18.48B
EBITDA	55.72B	40.39B	28.51B	20.61B	17.38B	14.92B
Net Income	17.23B	16.98B	12.52B	8.65B	6.34B	3.46B
Balance Sheet
Total Assets	877.94B	797.35B	626.00B	504.47B	367.08B	302.93B
Cash, Cash Equivalents and Short-Term Investments	10.01B	11.24B	6.88B	9.12B	5.27B	6.03B
Total Debt	699.39B	647.40B	506.91B	401.70B	276.18B	233.56B
Total Liabilities	748.74B	694.68B	540.41B	445.12B	314.40B	272.98B
Stockholders Equity	129.20B	102.67B	85.59B	59.35B	52.68B	29.96B
Cash Flow
Free Cash Flow	17.08B	-144.85B	-111.23B	11.93B	8.78B	7.34B
Operating Cash Flow	17.16B	-144.60B	-111.00B	12.11B	8.86B	7.36B
Investing Cash Flow	-83.54B	-5.18B	-231.62M	-172.09M	-62.34B	-41.50B
Financing Cash Flow	69.40B	149.60B	110.59B	123.68B	52.71B	24.41B

Indian Renewable Energy Development Agency Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 116.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IREDA, the sentiment is Negative. The current price of 116.05 is below the 20-day moving average (MA) of 126.46, below the 50-day MA of 132.43, and below the 200-day MA of 148.92, indicating a bearish trend. The MACD of -2.97 indicates Positive momentum. The RSI at 27.59 is Positive, neither overbought nor oversold. The STOCH value of 21.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IREDA.

Indian Renewable Energy Development Agency Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PREMIERENE	70 Outperform	₹323.19B	24.20	―	0.11%	39.18%	112.25%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
IREDA	62 Neutral	₹326.01B	17.03	―	―	33.44%	17.49%
RELTD	59 Neutral	₹25.11B	30.97	―	―	483.21%	―
BORORENEW	46 Neutral	₹61.76B	-88.44	―	―	7.68%	-114.23%
SWSOLAR	43 Neutral	₹44.32B	-11.40	―	―	112.24%	-474.43%

Indian Renewable Energy Development Agency Ltd. Corporate Events

IREDA Board Clears Q3 and Nine-Month FY26 Results With Clean Audit Opinion

Indian Renewable Energy Development Agency Limited announced that its Board of Directors has approved the audited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, following a meeting held on 9 January 2026. The auditors issued an unqualified opinion stating that the interim standalone financial results give a true and fair view in accordance with Indian Accounting Standards, RBI guidelines and SEBI listing regulations, reinforcing the integrity of IREDA’s financial reporting and providing assurance to investors and other stakeholders about the company’s financial disclosures.

IREDA Releases Investor Presentation for Quarter Ended December 31, 2025

Indian Renewable Energy Development Agency Limited has released an investor presentation for the quarter ended December 31, 2025, outlining its financial performance, operational metrics, asset quality, and shareholder outlook. The presentation also covers the broader renewable energy financing environment and highlights the company’s ongoing ESG initiatives, indicating a continued emphasis on sustainable growth and transparency for investors and other stakeholders.

IREDA’s Audited Standalone Interim Results Get Clean Opinion with NPA Classification Highlighted

Indian Renewable Energy Development Agency Limited has released its audited standalone interim financial statements for the nine months ended 31 December 2025, with joint statutory auditors Shiv & Associates and Rao & Emmar concluding that the accounts present a true and fair view in line with Indian Accounting Standard 34, RBI guidelines and generally accepted accounting principles in India. The auditors highlighted that certain accounts which would ordinarily be classified as Stage III non-performing assets under RBI prudential norms have been treated as standard (Stage II) in line with interim court orders, with interest on these loans recognized on a collection basis and impairment allowances adjusted accordingly, and also noted that management has applied 100% risk weight to these assets, resulting in a restated capital adequacy ratio of 15.52% as of 31 December 2024, a point of interest for regulators, investors and lenders monitoring the company’s asset quality and capital position.

IREDA’s Nine-Month Consolidated Results Get Clean Audit, With Emphasis on NPA Classification and Capital Ratios

Indian Renewable Energy Development Agency Limited has released its audited consolidated interim financial statements for the nine months ended 31 December 2025, with the independent auditors concluding that the accounts give a true and fair view of the group’s financial position and performance in accordance with Indian Accounting Standards. The auditors highlighted two key matters: certain loans totaling ₹400.24 crore that would ordinarily be treated as non-performing assets have been classified as standard loans under interim High Court orders, with interest recognized on a collection basis and impairment allowances made accordingly; and the company has restated its capital adequacy ratio for the prior corresponding period after increasing the risk weight on seasoned renewable energy project assets from 50% to 100% in line with Reserve Bank of India directions, reducing the previously reported CRAR from 19.63% to 15.52%, though these points did not lead to any modification of the audit opinion.

IREDA Reports Strong Growth in Green Loan Sanctions and Disbursements in 2025

Indian Renewable Energy Development Agency Limited (IREDA), a government-backed lender specializing in financing renewable energy and energy efficiency projects, reported strong provisional business performance for the period up to December 31, 2025. The company recorded a 29% year-on-year increase in loans sanctioned to ₹40,100 crore, a 44% jump in loan disbursements to ₹24,903 crore, and a 28% rise in its outstanding loan book to ₹87,975 crore compared with the same period in 2024, underscoring robust demand for green financing and reinforcing IREDA’s expanding role in supporting India’s clean energy transition.