Indian Renewable Energy Development Agency Ltd (Finance - PSU Lending) — fundamental analysis, earnings data, and key metrics. PE: 17.0. ROE: 18.0%. This stock is not currently in the Nifty 500 momentum outperformers list.
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
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's latest quarterly results (Dec 2025) show
Indian Renewable Energy Development Agency Ltd's current PE ratio is 17.0x.
Indian Renewable Energy Development Agency Ltd's price-to-book ratio is 2.5x.
Indian Renewable Energy Development Agency Ltd's fundamental strength based on key financial ratios
Indian Renewable Energy Development Agency Ltd has a debt-to-equity ratio of N/A.
Indian Renewable Energy Development Agency Ltd's return ratios over recent years
Indian Renewable Energy Development Agency Ltd's operating cash flow is negative (FY2025).
Indian Renewable Energy Development Agency Ltd's current dividend yield is 0.52%.
Indian Renewable Energy Development Agency Ltd's shareholding pattern (Dec 2025)
Indian Renewable Energy Development Agency Ltd's promoter holding has remained stable recently.
Indian Renewable Energy Development Agency Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
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
Indian Renewable Energy Development Agency Ltd's management has provided the following forward guidance for fy27
Based on quantitative research signals, here is why Indian Renewable Energy Development Agency Ltd may be worth studying
Indian Renewable Energy Development Agency Ltd investment thesis summary:
Indian Renewable Energy Development Agency Ltd's forward outlook based on current data signals
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.
