As of Mar 28, 2026, Indian Renewable Energy Development Agency Ltd (Finance - PSU Lending) has a deep value score of 36/100 (rated Weak). Earnings are accelerating. 1Y return vs Nifty 500: -27%.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
IREDA is transitioning from regulatory-driven volatility to sustainable growth as India's renewable push normalizes margins and asset quality after absorbing RBI's 100% risk weight on commissioned assets.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Expected PAT growth >30% YoY as full-year loan book expansion (28% YoY) flows through P&L
Impact: +₹2500 Cr revenue
“9M PAT growth at 15% YoY with accelerating disbursements”
Potential reversal of 100% risk weight on commissioned assets could boost CRAR by 300-400 bps
“CRAR recovered to 19.54% after QIP; industry lobbying ongoing”
NPA ratio projected to fall below 1.5% as renewable sector stabilizes, triggering institutional buying
“NPA ratio improved sequentially to 1.68% from 1.85% in Q2”
Expected ₹50,000+ crore in new sanctions from PLI schemes and state utility tenders
Impact: +₹50000 Cr revenue
“9M loan sanctions up 29% YoY to ₹40,100 crore”
Risks that could prevent re-rating or deepen the value trap
RBI maintains 100% risk weight beyond June 2026
Impact: -150 bps margin impact
Management view: Management actively engaging with RBI; QIP provides buffer for now
Monitor: CRAR ratio quarterly
NIM falls below 2.5% in Q4
Impact: -100 bps margin impact
Management view: Management optimizing liabilities through debt redemption
Monitor: Net interest margin quarterly
Renewable allocation cut in FY27 budget
Impact: -200 bps margin impact
Management view: Diversifying into ethanol and manufacturing segments
Monitor: Government budget announcements
Forward-looking targets from management for fy27
Revenue Growth Target
25%
Implied PAT Growth
30%
OPM Guidance
2.7%
Capex Plan
₹500 Cr
Credit Growth Target
28%
NIM Guidance
2.65%
Key Milestones
• CRAR >20% by Q2 FY27
• NPA <1.5% by Q4 FY27
• Loan book >₹100,000 crore by FY27
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +25% | +33% | Decelerating |
| PAT (Net Profit) | +38% | +39% | Stable |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Indian Renewable Energy Development Agency Ltd has a deep value score of 36/100 (rated Weak). This score is calculated from three components
Indian Renewable Energy Development Agency Ltd's quarterly profit (PAT) growth trajectory
Indian Renewable Energy Development Agency Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Indian Renewable Energy Development Agency Ltd's earnings momentum is Accelerating — profit growth is speeding up.
Indian Renewable Energy Development Agency Ltd's valuation metrics
Indian Renewable Energy Development Agency Ltd's revenue and margin trends
Indian Renewable Energy Development Agency Ltd's trailing twelve month (TTM) performance
Indian Renewable Energy Development Agency Ltd key facts
Indian Renewable Energy Development Agency Ltd shows limited deep value signals currently — score is 36/100 (Weak). Monitor for improvement.
Indian Renewable Energy Development Agency Ltd asset quality metrics (financial sector)
Finance - PSU Lending deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Indian Renewable Energy Development Agency Ltd has 4 key growth catalysts identified from recent earnings analysis
Indian Renewable Energy Development Agency Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
