IREDA share price falls after Q3 FY2025 results; BUY, SELL or HOLD?

IREDA share price: Shares of the state-owned Indian Renewable Energy Development Agency (IREDA) tumbled over 3.5% on Friday, January 10 to hit the day's low at Rs 208.42 apiece on the NSE after the company reported Q3 FY25 results.

The Navratna PSU reported a 25% year-on-year (YoY) growth in net profit for Q3 FY2025 at Rs 425.38 crore, driven by higher interest income. In Q3 FY2024, profit stood at Rs 335.53 crore. Revenue from operations jumped 35.56% YoY to Rs 1,698.45 crore from Rs 1,252.85 crore in the year-ago period.

The company’s net non-performing assets ratio stood at 1.50% as against 1.52% a year ago. Net interest margin grew to 3.33% from 3.20%, while borrowing costs declined to 7.68% from 7.82%.

IREDA sanctioned loans worth Rs 13,227 crore during the quarter, up 45% YoY, and disbursements rose 25% to Rs 7,449 crore. Its loan book stood at Rs 68,960 crore, up from Rs 50,580 crore last year. Outstanding borrowings as of December 2024 totaled Rs 57,931 crore, with 85% sourced from domestic lenders.

The company remains optimistic about India's renewable energy sector, citing favorable policy announcements and ambitious targets. IREDA aims to raise Rs 30,000 crore in FY25, partly through a follow-on public offer in January-February, and expects to boost its loan book to over Rs 85,000 crore by the end of the financial year.