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: Stock Analysis & Fundamentals
Data from 4w agoIndian Renewable Energy Development Agency Ltd (Finance - PSU Lending) — fundamental analysis, earnings data, and key metrics. PE: 19.8. ROE: 18.0%. This stock is not currently in the Nifty 500 momentum outperformers list.
Indian Renewable Energy Development Agency Ltd Key Facts
What's Happening
👔Promoter stake down 3.2% this quarter
🏛️DII accumulation — stake up 2.2%
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
Current Price
₹133
Dividend Yield
0.45%
Market Cap
37.4K Cr
Valuation
N/AWhy 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
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: Indian Renewable Energy Development Agency Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Indian Renewable Energy Development Agency Ltd's latest quarterly results?
Indian Renewable Energy Development Agency Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +37.6%
- Revenue Growth YoY: +25.4%
- Net Interest Margin: 34.00%
- Gross NPA: 3.75%
What is Indian Renewable Energy Development Agency Ltd's current PE ratio?
Indian Renewable Energy Development Agency Ltd's current PE ratio is 19.8x.
- Current PE: 19.8x
- Market Cap: 37.4K Cr
- Dividend Yield: 0.45%
What is Indian Renewable Energy Development Agency Ltd's price-to-book ratio?
Indian Renewable Energy Development Agency Ltd's price-to-book ratio is 2.9x.
- Price-to-Book (P/B): 2.9x
- Book Value per Share: ₹46
- Current Price: ₹133
Is Indian Renewable Energy Development Agency Ltd a fundamentally strong company?
Indian Renewable Energy Development Agency Ltd's fundamental strength based on key financial ratios
- Return on Equity (ROE): 18.0%
Is Indian Renewable Energy Development Agency Ltd debt free?
Indian Renewable Energy Development Agency Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹70,000 Cr
What is Indian Renewable Energy Development Agency Ltd's return on equity (ROE) and ROCE?
Indian Renewable Energy Development Agency Ltd's return ratios over recent years
- FY2023: ROE 15.0%
- FY2024: ROE 15.0%
- FY2025: ROE 18.0%
Is Indian Renewable Energy Development Agency Ltd's cash flow positive?
Indian Renewable Energy Development Agency Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-14,000 Cr
- Free Cash Flow (FCF): ₹-15,000 Cr
- CFO/PAT Ratio: -852% (weak cash conversion)
What is Indian Renewable Energy Development Agency Ltd's dividend yield?
Indian Renewable Energy Development Agency Ltd's current dividend yield is 0.45%.
- Dividend Yield: 0.45%
- Current Price: ₹133
Who holds Indian Renewable Energy Development Agency Ltd shares — promoters, FII, DII?
Indian Renewable Energy Development Agency Ltd's shareholding pattern (Mar 2026)
- Promoters: 71.8%
- FII (Foreign): 2.1%
- DII (Domestic): 2.4%
- Public: 23.6%
Is promoter holding increasing or decreasing in Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 71.8% (Mar 2026)
- Previous Quarter: 71.8% (Dec 2025)
- Change: 0.00% (stable)
Is Indian Renewable Energy Development Agency Ltd a new momentum entry or an established outperformer?
Indian Renewable Energy Development Agency Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
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 — Net NPA improved from 1.97% in Sep-25 to 1.68% in Dec-25.
- Interest Cost Reduction Deleveraging — Cost of borrowings declined from 7.68% to 7.07% through judicious liability management.
- Regulatory Approval Or License Win — Navratna status provides greater financial autonomy and operational flexibility.
- Tam Expansion Changing Consumption — Expected required investment across RE sectors till FY30 creates a massive lending pipeline.
What are the key risks in Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd has 2 key risks worth monitoring
- [MEDIUM] Asset quality stress related to a specific legacy borrower from FY 2019-20 — One borrower shifted from stage II to NPA due to an AP High Court Order.
- [LOW] Compliance with evolving ESG disclosure norms and BRSR requirements — IREDA is transitioning to third-party reasonable assurance for BRSR reporting.
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]"
What is Indian Renewable Energy Development Agency Ltd's management guidance for growth?
Indian Renewable Energy Development Agency Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Management tone: bullish
What sector-specific metrics matter most for Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin (Annualised): 3.74% (YoY +41 bps) (QoQ +206 bps) — NIM expanded due to a decrease in the cost of borrowings and stable yields on loan assets.
- Gross NPA Ratio: 3.75% (YoY +107 bps) (QoQ -22 bps) — Sequential improvement from 3.97% in Q2, though higher YoY due to a legacy account reclassification.
- Net NPA Ratio: 1.68% (YoY +18 bps) (QoQ -29 bps) — Improved sequentially due to higher provisioning and recovery efforts.
- Provision Coverage Ratio: 56.08% (YoY +1156 bps) — Management increased provisioning to strengthen the balance sheet against stressed assets.
- Capital Adequacy Ratio (CRAR): 20.10% (YoY +426 bps) — Capital position strengthened by the QIP and internal accruals.
- Cost of Borrowings: 7.07% (YoY -61 bps) — Refinancing and access to lower-cost international funds like the JPY 26 Billion ECB facility.
Is Indian Renewable Energy Development Agency Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Indian Renewable Energy Development Agency Ltd may be worth studying
- Strong returns — ROE 18.0%
What is the investment thesis for Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Key risk: Asset quality stress related to a specific legacy borrower from FY 2019-20
What is the future outlook for Indian Renewable Energy Development Agency Ltd?
Indian Renewable Energy Development Agency Ltd's forward outlook based on current data signals
- Key Catalyst: Asset Quality Improvement
- Key Risk: Asset quality stress related to a specific legacy borrower from FY 2019-20
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.