Asset Quality Improvement
Expected: QoQHIGH confidence
What: Net NPA Ratio: 1.68%
“Net NPA (%) 1.68% 1.97% 1.50%... Net NPA 1448 1627 1024”
Indian Renewable Energy Development Agency Ltd: Is It a Deep Value Opportunity?
WeakAcceleratingFinancial
As of , Indian Renewable Energy Development Agency Ltd (Finance - PSU Lending) has a deep value score of 32/100 (rated Weak). Earnings are accelerating. 1Y return vs Nifty 500: -23%.
Indian Renewable Energy Development Agency Ltd Key Facts
- PE Ratio
- 19.0x
- Market Cap
- ₹35,705 Cr
- Value Score
- 32/100
- Margin of Safety
- 10%
- PAT Growth YoY
- +38%
- Revenue Growth YoY
- +25%
PB: Near TroughStrong Opportunity
What's Happening
💎PB falling while earnings hold — value emerging
👔Promoter stake down 3.2% this quarter
🏛️DII accumulation — stake up 2.2%
⚠️GNPA at 3.75% and deteriorating — asset quality concern
Earnings Acceleration Triggers
1. Asset Quality Improvement
QoQHIGH
2. Interest Cost Reduction Deleveraging
YoYMEDIUM
3. Regulatory Approval Or License Win
FY25MEDIUM
Key Risks
1. Asset quality stress related to a specific legacy borrower from FY 2019-20
MEDIUM2. Compliance with evolving ESG disclosure norms and BRSR requirements
LOWSector-Specific Signals
Net Interest Margin (Annualised)3.74%+41 bps
Gross NPA Ratio3.75%+107 bps
Net NPA Ratio1.68%+18 bps
Provision Coverage Ratio56.08%+1156 bps
Key Numbers
PAT Growth YoY
+38%
Stable
Revenue YoY
+25%
Decelerating
GNPA
3.75%
Deteriorating
Price to Book
2.8
PEG Ratio
0.37
Current Price
₹127
Dividend Yield
0.47%
3Y PAT CAGR
+39%
Market Cap
35.7K Cr
Valuation
Slightly UndervaluedWhy Are Indian Renewable Energy Development Agency Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
Interest Cost Reduction Deleveraging
Expected: YoYMEDIUM confidence
What: Cost of Borrowings: 7.07%
“Cost of borrowings (%)* 7.07% 7.68% -8%... Calculated on the basis of weighted average outstanding borrowings.”
Regulatory Approval Or License Win
Expected: FY25MEDIUM confidence
What: Navratna Status: Granted
“Granted Navratna Status by DPE... Navratna & 'Schedule A' CPSE.”
Tam Expansion Changing Consumption
Expected: Till FY30HIGH confidence
What: RE Financing Potential: ₹31.6 Lakh Cr
“with an expected required investment of ~ ₹ 31.6 lakh Cr across RE sectors till FY30”
Operating Leverage Inflection
Expected: 9M FY26MEDIUM confidence
What: Operating Profit Growth: 44%
“Operating Profit... 9 Months Ended... 44%... Revenue from operations... 27%”
PAT growth of 38% YoY
HIGH confidence
What: PAT growth of 38% YoY
“Profit after Tax 585 549 425 38%... Net Interest Margin (%) (Annualised) 3.74% 3.33% 12%”
What Are the Key Risks for Indian Renewable Energy Development Agency Ltd?
Earnings deceleration risks from management commentary
Asset quality stress related to a specific legacy borrower from FY 2019-20
MEDIUMTrigger: One borrower shifted from stage II to NPA due to an AP High Court Order.
Monitor: commodity
Compliance with evolving ESG disclosure norms and BRSR requirements
LOWTrigger: IREDA is transitioning to third-party reasonable assurance for BRSR reporting.
Monitor: regulatory
What Is Indian Renewable Energy Development Agency Ltd's Management Saying?
Key quotes from recent conference calls
“Sustained growth momentum — 27%+ loan book CAGR over 5 years... Growth runway — ₹ 31.6L Cr RE financing potential [Previous Loan Book Growth guidance]”
“Incorporated Wholly Owned Subsidiary Company in IFSC – GIFT City... Certificate of Registration (COR) for subsidiary at IFSC GIFT City [Initiative: GIFT City Subsidiary]”
“Third BRSR with reasonable assurance and First sustainability report (planned) 2025–2026 [Initiative: ESG Reporting and Sustainability Report]”
“Relates to FY 2019-20 for one borower shifted from stage II to NPA due to AP High Court Order dated 02.07.2025 [Risk (commodity): MEDIUM]”
What Did Indian Renewable Energy Development Agency Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹2,130 Cr
YoY +25%QoQ +3.5%
Why: Growth driven by a 28% year-on-year increase in the outstanding loan book to ₹87,975 Cr.
Revenue growth remains consistent with the expansion of the renewable energy lending portfolio.
EBITDA
₹857 Cr
YoY +31%Margin 40.2%
Why: Operating profit increased due to higher interest income and controlled growth in interest expenses.
Operating leverage is visible as operating profit growth (31%) outpaced revenue growth (25%).
PAT
₹585 Cr
YoY +38%QoQ +6.6%
Why: Profit after tax grew significantly due to strong operational performance and a 12 bps expansion in NIM.
PAT growth was supported by improved margins and lower relative credit costs.
Other Highlights
• Net worth increased 38% YoY to ₹13,537 Cr.
• Sanctions grew 29% YoY to ₹40,100 Cr in 9M FY26.
• Disbursements rose 44% YoY to ₹24,903 Cr in 9M FY26.
What Sector Metrics Matter for Indian Renewable Energy Development Agency Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin (Annualised)
3.74%
YoY +41 bpsQoQ +206 bps
Why: NIM expanded due to a decrease in the cost of borrowings and stable yields on loan assets.
Gross NPA Ratio
3.75%
YoY +107 bpsQoQ -22 bps
Why: Sequential improvement from 3.97% in Q2, though higher YoY due to a legacy account reclassification.
Net NPA Ratio
1.68%
YoY +18 bpsQoQ -29 bps
Why: Improved sequentially due to higher provisioning and recovery efforts.
Provision Coverage Ratio
56.08%
YoY +1156 bps
Why: Management increased provisioning to strengthen the balance sheet against stressed assets.
Capital Adequacy Ratio (CRAR)
20.10%
YoY +426 bps
Why: Capital position strengthened by the QIP and internal accruals.
Cost of Borrowings
7.07%
YoY -61 bps
Why: Refinancing and access to lower-cost international funds like the JPY 26 Billion ECB facility.
Outstanding Loan Book
₹87,975 Cr
YoY +28%QoQ +4.1%
Why: Strong demand in solar and wind sectors, which comprise 25% and 12% of the book respectively.
Debt Equity Ratio
5.41
YoY -0.48 xQoQ 0.00 x
Why: Leverage improved due to significant equity infusion through QIP.
What Is Indian Renewable Energy Development Agency Ltd's Management Guidance?
Forward-looking targets from management
Volume
Targeting non-fossil fuel-based energy capacity by 2030
Management Tone: BULLISH
How Fast Is Indian Renewable Energy Development Agency Ltd Growing?
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 parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Frequently Asked Questions: Indian Renewable Energy Development Agency Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Indian Renewable Energy Development Agency Ltd's deep value score?
Indian Renewable Energy Development Agency Ltd has a deep value score of 32/100 (rated Weak). This score is calculated from three components
- Earnings Score: 30/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 10/25 — operational quality (margins, revenue growth, valuation)
Is Indian Renewable Energy Development Agency Ltd fundamentally improving?
Indian Renewable Energy Development Agency Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +7%
- Previous Quarter PAT Growth (QoQ): +123%
- 2 Quarters Ago PAT Growth (QoQ): -51%
- PAT Acceleration: +28.7pp (profits are accelerating)
- 2 consecutive quarters of positive PAT growth
Why is Indian Renewable Energy Development Agency Ltd underperforming despite good earnings?
Indian Renewable Energy Development Agency Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -23%
- 6-Month Return vs Nifty 500: -10%
- 3-Month Return vs Nifty 500: +6%
- Yet average quarterly PAT growth is +26% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd's earnings momentum is Accelerating — profit growth is speeding up.
- PAT QoQ progression: -51% → +123% → +7% (2Q ago → 1Q ago → latest)
- Acceleration: +28.7pp
- PAT YoY Growth: +38%
Is Indian Renewable Energy Development Agency Ltd undervalued?
Indian Renewable Energy Development Agency Ltd's valuation metrics
- Price-to-Earnings (PE): 18.6x
- Price-to-Book (PB): 2.8x
- PEG Ratio: 0.4x
- Margin of Safety: +28% (appears undervalued)
What are the revenue and margin trends for Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +4%
- Average Quarterly Revenue Growth: +4%
- Revenue Acceleration: +0.6pp
- Latest OPM Change: -0.6pp (margins contracting)
- Average OPM Change: +0.2pp
- Revenue YoY: +25%
What is Indian Renewable Energy Development Agency Ltd's trailing twelve month (TTM) performance?
Indian Renewable Energy Development Agency Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹2,000 Cr
- TTM PAT Growth: +22.8% YoY
- TTM Revenue: ₹8,000 Cr
- TTM Revenue Growth: +29.1% YoY
What sector does Indian Renewable Energy Development Agency Ltd belong to?
Indian Renewable Energy Development Agency Ltd key facts
- Sector: Finance - PSU Lending
- Market Cap: ₹35.7K Cr
- Rank in Finance - PSU Lending: #1 by value score
- Overall rank among all deep value stocks: #51
- Classification: Financial (banking/NBFC scoring model applied)
Is Indian Renewable Energy Development Agency Ltd a good deep value opportunity to study?
Indian Renewable Energy Development Agency Ltd shows limited deep value signals currently — score is 32/100 (Weak). Monitor for improvement.
- Value Score: 32/100 (Weak)
- Earnings: Accelerating
- 1Y Underperformance: -23% vs Nifty 500
What is the bull and bear case for Indian Renewable Energy Development Agency Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 2 consecutive quarters of positive PAT growth
- Appears undervalued based on fair value analysis
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Margin pressure warning
What is the asset quality of Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd asset quality metrics (financial sector)
- Gross NPA: 3.75%
- GNPA Trend: DETERIORATING
- Net NPA: 1.68%
- NNPA Trend: DETERIORATING
How does the Finance - PSU Lending sector look for deep value?
Finance - PSU Lending deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 32/100
- Avg PAT acceleration: +28.7pp
- Top pick: Indian Renewable Energy Development Agency Ltd
What is deep value investing?
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.
How is the deep value score calculated?
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.
What are the growth catalysts for Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd has 6 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement
- Interest Cost Reduction Deleveraging
- Regulatory Approval Or License Win
- Tam Expansion Changing Consumption
What are the key risks in Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd has 2 key risks worth monitoring
- Asset quality stress related to a specific legacy borrower from FY 2019-20
- Compliance with evolving ESG disclosure norms and BRSR requirements
What did Indian Renewable Energy Development Agency Ltd's management say in the latest earnings call?
In Q3 FY26, Indian Renewable Energy Development Agency Ltd's management highlighted
- "Sustained growth momentum — 27%+ loan book CAGR over 5 years... Growth runway — ₹ 31.6L Cr RE financing potential [Previous Loan Book Growth guidance..."
- "Incorporated Wholly Owned Subsidiary Company in IFSC – GIFT City... Certificate of Registration (COR) for subsidiary at IFSC GIFT City [Initiative: G..."
- "Third BRSR with reasonable assurance and First sustainability report (planned) 2025–2026 [Initiative: ESG Reporting and Sustainability Report]"
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.