The Indian Renewable Energy Development Agency (IREDA) has just released its Q4 results for FY25, and the numbers are impressive. With a substantial rise in both net profit and revenue, IREDA is showing strong growth despite challenges in the broader market.
Let’s break down the numbers and see what they mean for the future of this PSU company.
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Record profit and revenue growth in Q4
IREDA has posted a stellar 49% increase in net profit for the quarter ending March 31, 2025. The net profit reached ₹502 crore, up from ₹337 crore in the same quarter last year. This is largely due to the company’s sharp rise in revenue, which surged by 37% year-on-year, totalling ₹1,905.06 crore.
This robust performance is impressive, especially considering the PSU’s focus on financing renewable energy projects in India, a sector that’s seen increasing investment. The company’s interest income also spiked over 40% to ₹1,861.14 crore, further boosting its financial standing.
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Key performance metrics
| Metric | Q4 FY25 | YoY Change |
| Revenue from Operations | ₹1,905 crore | +37% |
| Total Expenses | ₹1,285 crore | +41% |
| Interest Income | ₹1,861 crore | +40% |
| Net Profit | ₹502 crore | +49% |
While the jump in expenses to ₹1,284.75 crore could raise some eyebrows, it’s largely tied to the expanding scale of operations and the rising interest costs associated with IREDA’s growing loan book.
Strong performance in FY25
IREDA’s annual results were equally strong. For the full financial year, the company reported its highest-ever profit after tax (PAT) of ₹1,699 crore, marking a 36% increase compared to FY24. Its operational revenue for FY25 rose by 36% to ₹6,742 crore, driven by a growing loan book and increased project financing.
At the end of FY25, IREDA’s loan book stood at ₹76,282 crore, a 28% year-on-year increase. This highlights the company’s role in driving renewable energy investments across India, helping meet the country’s ambitious green energy goals.
Full-year performance at a glance
| Metric | FY25 | YoY Change |
| Net Profit | ₹1,699 crore | +36% |
| Revenue from Operations | ₹6,742 crore | +36% |
| Loan Book | ₹76,282 crore | +28% |
NPA concerns and asset quality
Despite strong earnings, IREDA’s asset quality has shown some signs of pressure. The net NPA ratio for Q4 FY25 increased to 1.35%, up from 0.99% in Q4 FY24. While this represents a decline from the 1.5% recorded in Q3 FY25, it’s still a point of concern for the company, as it could impact its future profitability.
IREDA’s gross NPA ratio also rose to 2.45% for the quarter, compared to 2.36% in the same period last year. Although the sequential decline in NPA levels from the previous quarter is promising, it remains an issue to monitor closely.
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Share price movement: a volatile year
IREDA’s shares have had a volatile ride in 2025. Despite strong results in Q4, the stock has been on a downward trajectory for much of the year, losing over 24% year-to-date. However, the Q4 results sparked investor optimism, and shares jumped by over 8% to ₹167.10, reflecting investor confidence in the company’s growth prospects.
IREDA shares have gained 20% in the last month, but they’re still trading well below their 52-week high of ₹310, which was touched in July 2024. The current price is about 44% lower than that peak, highlighting the stock’s underperformance over the past year.
IREDA’s stock performance in FY25
| Date Range | Share Price Change |
| 1-Month | +20% |
| 1-Year | -24% |
| 6-Month | -31% |
| 52-Week High | ₹310 |
| 52-Week Low | ₹137.01 |
The outlook for IREDA
Despite the rise in NPAs, IREDA is well-positioned for the future, especially with the growing demand for renewable energy projects in India. The government’s push towards green energy and IREDA’s increasing loan book suggest continued expansion in the coming years.
For investors, the stock’s current price offers an opportunity to buy into a company with strong growth potential, but with some risk due to its volatility and asset quality concerns. The stock’s low relative strength index (RSI) of 57.32 suggests that it’s neither oversold nor overbought, offering a balanced opportunity.
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What to watch going forward
- Loan book growth: Keep an eye on IREDA’s ability to maintain its loan book growth, as it’s a crucial driver of the company’s profitability.
- NPA trends: A continued rise in NPAs could put pressure on margins, so it’s important to monitor this closely.
- Renewable energy policies: As the government ramps up its renewable energy initiatives, IREDA stands to benefit from increased financing opportunities.
Conclusion
IREDA’s strong Q4 performance and record annual profits reflect its strategic focus on financing India’s green energy transition. Despite challenges related to NPAs and volatile stock performance, the company’s growth trajectory in the renewable energy sector makes it a key player in the Indian market.
For investors, IREDA offers potential upside but comes with some risks that need to be carefully evaluated.
