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IREDA Q4 Results FY25 have delivered a strong performance, with significant growth across net interest income, profitability, and asset quality. Backed by strategic sanctions and growing disbursements, Indian Renewable Energy Development Agency Ltd. continues to demonstrate robust fundamentals.
Quick Snapshot
- CMP: ₹167
- Market Cap: ₹44,913 Cr
- 52W High/Low: ₹310 / ₹137
- P/E (FY26E): 23.9x
- Trailing P/BV: 4.4x
- Quarter EPS: ₹1.9
Revenue & Profit Trends
Net Interest Income (NII)
- Q4 FY25: ₹757.4 Cr
- YoY Growth: +57.3% (vs ₹481.4 Cr)
- QoQ Growth: +21.7% (vs ₹622.3 Cr)
Pre-Provision Profit (PBP)
- Q4 FY25: ₹755.4 Cr
- YoY Growth: +57.7% (vs ₹479.2 Cr)
- QoQ Growth: +22.2% (vs ₹617.8 Cr)
Provisions
- Q4 FY25: ₹129.4 Cr
- YoY Spike: (vs ₹9.4 Cr)
- QoQ Increase: (vs ₹104 Cr)
Profit After Tax (PAT)
- Q4 FY25: ₹501.8 Cr
- YoY Growth: +52.4% (vs ₹329.3 Cr)
- QoQ Growth: +18% (vs ₹425.4 Cr)
Loan Book & Asset Quality
Loan Book
- Q4 FY25: ₹76,250 Cr
- YoY Growth: +27.8% (vs ₹59,650 Cr)
- QoQ Growth: +10.6% (vs ₹68,960 Cr)
Sanctions
- Q4 FY25: ₹16,366 Cr
- YoY Decline: -31.2% (vs ₹23,796 Cr)
- QoQ Growth: +23.7% (vs ₹13,227 Cr)
Asset Quality
- Gross NPA: 2.45% (vs 2.68% QoQ)
- Net NPA: 1.35% (vs 1.5% QoQ)
Key Positives
- 🔼 Strong PAT Growth: >50% YoY growth in bottom line.
- 💸 NII & PBP Growth: Strong expansion in core earnings.
- 📉 Decline in Gross & Net NPA: Asset quality improved.
- 📊 Healthy Loan Book Expansion: Strong 27.8% YoY growth.
Valuation Perspective
- P/E at 23.9x FY26E EPS indicates fair valuation for a public sector NBFC in a high-growth renewable financing space.
- P/BV of 4.4x seems slightly rich, but justified given strong growth visibility, profitability, and sector tailwinds.
Industry Outlook & Tailwinds
Renewable Energy Push
India aims to achieve 500 GW non-fossil capacity by 2030. As the nodal agency for renewable financing, IREDA is at the forefront of this transformation.
Government Support
As a government-owned NBFC, IREDA benefits from policy support, lower cost of borrowing, and strategic project alignment with national goals.
Competitive Edge
- Strong legacy in project finance for clean energy.
- Increasing public-market visibility after successful listing.
Risks to Watch
- Higher provisioning this quarter points to potential asset stress.
- Falling sanctions YoY could hint at slower future disbursements.
- Valuation may be stretched in the short term.
Forecast & Outlook
With strong earnings momentum, an expanding loan book, and improving asset quality, IREDA is positioned to benefit from India’s green energy push. Analysts expect continued double-digit growth in FY26.
Key Forecast Highlights:
- FY26 EPS growth forecast: ~18%-20%
- Expected PAT for FY26: ₹2000+ Cr
- Loan book may cross ₹1 lakh crore in FY26
Investment Takeaway
IREDA remains a compelling long-term story for investors seeking exposure to India’s green energy revolution through a fundamentally sound PSU financial institution. While short-term volatility may exist, the structural story remains intact.
✅ Verdict: Long-term Buy on Dips
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Disclaimer: The projections of potential returns are based on current market conditions and company performance. Actual results may vary due to various factors, including market dynamics, economic conditions, and changes in the competitive landscape. Investors should conduct their own research and consult with financial advisors before making investment decisions.
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