IREDA share jumps up to 7% after reporting a Net Profit growth of 49% YoY & QIP Plans

On Wednesday, the shares of Indian Renewable Energy Development Agency (IREDA) rose by 7 percent on the NSE after reporting its financial results for the Q4FY25 quarter, showcasing a net profit growth of 49% year over year.

Q4FY25 Results Update

The Q4FY25 revenue from operations reported a 36.93 percent increase from Rs. 1,391.26 crore to Rs. 1,905.06 crore on a year-on-year basis. Quarterly, it grew by 12.16 percent from Rs. 1,698.45 crore.

The Profit After Tax (PAT) rose from Rs. 337.39 crore in Q4FY24 to Rs. 501.55 crore in Q4FY25, a 48.65 percent increase. It increased by 17.90 percent from Rs. 425.38 crore on a quarterly basis.

Annual Financial Performance and Key Ratios 

The consolidated revenue from operations increased by 36 percent to Rs. 6,755.69 crore from Rs. 4,965.29 crore on a year-on-year basis. The consolidated Profit After Tax (PAT) surged by 36 percent year-on-year to Rs. 1,698.34 crore, up from Rs. 1,252.24 crore in the same period last year.

The major component of IREDA’s growth is measured in net interest margin, which expanded to 3.27 percent in FY25 from 2.85 percent in FY24.  The cost of borrowings declined from 7.81 percent in FY24 to 7.61 percent in FY25. Further, the Revenue per employee costs rose to Rs. 40.37 crore in FY25 from Rs. 28.53 crore in FY24.

Additionally, IREDA’s net worth improved by 20 percent to Rs. 10,266 crore, strengthening its financial foundation and capacity to support future growth.

Loan Book Update and Sector Exposure

As on 31st March 2025, the IREDA’s Loan Book stood at Rs. 76,282 crore, comprising 73 percent exposure to the private sector and the remaining 27 percent to the public sector. The Loan Book grew by 28 percent year on year from Rs. 59,698 crore.

The Outstanding Loan exposure to Solar Thermal or Special Purpose Vehicle (SPV) is 24 percent, followed by 20 percent to State Utilities, 14 percent to Wind, 11 percent to Hydro Power, 8 percent to Ethanol, 6 percent to Manufacturing, 4 percent to Hybrid & Solar, 3 percent to Transmission or Emerging Technology (Smart Meters, Green Hydrogen, Energy Access) and remaining 10 percent to others.

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Shareholding Pattern

Under the President of India, the government shareholding in IREDA remained steady at 75 percent, with retail investors holding over 20 percent. The Foreign Institutional Investors decreased holdings to 1.74 percent in the March 2025 quarter from 1.85 percent in the December 2025 quarter. While domestic institutional investors (DII) held a 0.51 percent stake, respectively.

Recent Developments

To fuel its expansion, the IREDA’s board approved a Qualified Institutional Placement (QIP) to raise Rs. 5,000 crore, subject to a maximum dilution of 7 percent of the paid-up equity, and has approved a borrowing plan of Rs. 30,800 crore for FY26.

Company Overview

Indian Renewable Energy Development Agency (IREDA), a Navratna company, operates as a government-owned financial institution under the Ministry of New and Renewable Energy (MNRE). It provides financial assistance for renewable energy projects, energy efficiency, and conservation initiatives. The business model focuses on financing schemes, supporting solar, wind, hydro, biomass, and emerging green technologies.