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IREDA Shares in Focus After Strong Q4FY25 Results: Buy Now for ₹184 Target?

IREDA Shares in Focus After Strong Q4FY25 Results: Buy Now for ₹184 Target?

Shares of Indian Renewable Energy Development Agency (IREDA) are expected to witness high investor interest today as the PSU reported a stellar set of Q4FY25 numbers post-market hours on Tuesday. With a 49% year-on-year (YoY) surge in net profit and significant improvement in asset quality, IREDA is making a strong case for being one of the top-performing PSU stocks in the renewable energy space.

Q4FY25 Results Snapshot: Profit Soars 49%

In the January-March quarter of FY25, IREDA posted a net profit of ₹502 crore, marking a robust 49% jump compared to ₹337 crore in the corresponding quarter last year. This strong performance reflects the company’s focused lending strategy towards the fast-growing renewable energy sector in India.

On a full-year basis, the PSU clocked a net profit of ₹1,698.60 crore in FY25, a notable increase of 36% from ₹1,252.24 crore in FY24. The consistent growth in profitability highlights IREDA’s operational efficiency and its expanding footprint in clean energy financing.

Operational Highlights: Loan Book and Disbursements at Record Highs

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, praised the company’s Q4FY25 performance, noting that the results underline strong operational momentum.

“Total income surged to ₹1,391.6 crore in Q4FY25 from ₹1,036.3 crore in Q4FY24. The loan book expanded by 26.8% to ₹59,698.1 crore, which showcases growing demand for renewable energy funding,” Jain stated.

Additionally, annual loan sanctions for the year stood at ₹37,353.7 crore, while disbursements touched ₹25,089 crore—both representing all-time highs for the organization.

A key positive from the Q4FY25 earnings was the significant improvement in asset quality. IREDA’s net non-performing assets (NPAs) declined to 0.99% from 1.66%, signaling strong credit assessment and risk management practices.

“These results highlight IREDA’s strengthening financial position and its growing role in accelerating India’s clean energy transition through focused and sustainable lending,” Jain added.

Market Buzz: Is IREDA a Stock to Buy Now?

Following the strong quarterly and annual performance, market experts anticipate renewed interest from bulls on Dalal Street. The momentum ahead of the earnings announcement, combined with favorable fundamentals, indicates potential upside for the stock in the near term.

Mahesh M Ojha, AVP – Research at Hensex Securities, emphasized that the IREDA share price is currently facing a minor resistance around ₹174. “Once this level is crossed on a closing basis, the stock may rally further to ₹184 apiece,” he said.

Ojha advised existing shareholders to hold the stock with a stop loss at ₹164 and aim for the ₹184 short-term target. For fresh investors, he suggested momentum buying at the current levels, while maintaining a strict stop loss at ₹164 to safeguard against market volatility.

Technical View: Buy on Breakout Strategy

Technical analysts also point toward a breakout opportunity. If IREDA shares manage to breach the ₹174 resistance level convincingly, the momentum could lead the stock to touch ₹184 quickly. Market participants are advised to watch price action closely during the trading day to time their entries or exits effectively.

With improved fundamentals, growing renewable sector tailwinds, and investor-friendly management, IREDA is increasingly becoming a favorite among PSU stock watchers and clean energy enthusiasts.

Should You Invest in IREDA Today?

Given the impressive Q4FY25 earnings, sharp profit growth, and cleaner loan book, IREDA presents an attractive proposition for both short-term traders and long-term investors. The stock is currently trading near key resistance levels, and a successful breakout could offer quick gains.

However, as with any equity investment, risks exist. Investors should monitor broader market trends and maintain disciplined stop losses, especially in a post-results trading environment where profit-booking may occur.

That said, IREDA’s strategic importance in India’s renewable energy mission and its consistent financial growth make it a stock worth considering, especially for those betting on the green energy wave.

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