IREDA share price has managed to recovered nearly 20 percent from recent lows and the stock is currently trading sideways. IREDA has strong support around Rs 150 and with positive news, this stock could reach Rs 180 in the coming sessions. IREDA has announced strong loan growth and this could lead to strong activity in the counter on Tuesday.

India’s state-run renewable energy financier, IREDA (Indian Renewable Energy Development Agency Limited), has recorded a significant uptick in loan activity for FY2024–25. With loan sanctions rising 27% year-over-year to Rs. 47,453 crore and disbursements climbing 20% to Rs. 30,168 crore, the non-banking financial institution is reinforcing its central role in India’s clean energy transformation. The company’s outstanding loan book has expanded to Rs. 76,250 crore as of March 31, 2025, showcasing a structurally robust and growth-oriented lending portfolio, aligned with the country’s ambitious renewable energy targets.

Robust Growth in Loan Sanctions Reflects Strong Sectoral Momentum

IREDA sanctioned loans worth Rs. 47,453 crore in FY25, marking a sharp 27% increase compared to Rs. 37,354 crore in the previous year. This surge in sanctioned credit reflects both rising demand for clean energy project funding and the organization’s expanding reach across India’s renewable energy ecosystem.

As India scales its renewable capacity toward 500 GW by 2030, the need for timely and strategic capital allocation has never been more pressing. IREDA’s consistent credit growth illustrates its importance as a financial enabler of India’s energy transition.

Loan Disbursements Cross Rs. 30,000 Crore, Underlining Execution Strength

While sanctions represent future commitments, loan disbursements are a better reflection of execution readiness—and IREDA has delivered here as well. Disbursements rose 20% year-over-year to Rs. 30,168 crore, up from Rs. 25,089 crore in FY24.

This scale of lending has enabled a wide variety of clean energy ventures, including solar parks, wind farms, bioenergy projects, and energy efficiency upgrades. By ensuring that sanctioned funds are swiftly translated into deployed capital, IREDA continues to play a catalytic role in accelerating renewable installations across the country.

Outstanding Loan Book Grows 28% to Rs. 76,250 Crore

The agency’s outstanding loan portfolio now stands at Rs. 76,250 crore, a 28% jump from the previous year’s figure of Rs. 59,698 crore. This trajectory positions IREDA among India’s most aggressively scaling public sector financiers in the energy space.

A growing loan book signals sustained pipeline strength, improved repayment behavior, and disciplined asset management. It also implies a healthy blend of sanctioned but not yet disbursed loans and active long-term clean energy financing, especially in underserved regions.

Leadership Vision Anchored in Climate Finance

Chairman and Managing Director Pradip Kumar Das commented on the strong FY25 performance, stating:

“Our consistent growth in loan sanctions, disbursements, and the loan book reflects our strong dedication to financing renewable energy projects.”

He further added that the organization remains committed to providing innovative and accessible financial products to ensure inclusivity and sustainability in India’s clean energy growth story.

Das’s leadership has focused on expanding IREDA’s footprint while preserving credit discipline—traits that are increasingly important as India eyes decarbonization across sectors.

IREDA’s Strategic Role Within India’s Energy Policy Framework

As a non-banking financial company (NBFC) operating under the Ministry of New and Renewable Energy, IREDA holds a unique position. It acts not only as a lender but also as a policy instrument for the government’s renewable energy agenda.

The agency is often the first line of credit support for emerging green technologies and has played a key role in:

Financing large-scale solar and wind parks

Supporting rooftop solar programs in semi-urban and rural areas

Enabling battery storage and grid modernization initiatives

Promoting bio-energy and waste-to-energy projects

Its strategic financing toolkit includes interest rate subvention, partial risk guarantees, and other blended finance models—tools that are essential to de-risk renewable investments in a fast-changing economic environment.

Macro Backdrop: India's Renewable Financing Needs Are Expanding

India’s ambitious net-zero target by 2070 and the interim goal of achieving 50% of power capacity from non-fossil fuel sources by 2030 necessitate a massive infusion of green capital.

IREDA is expected to remain at the center of this financing matrix, alongside institutions like SECI (Solar Energy Corporation of India), REC Ltd, and PFC. The company’s ability to absorb risk, disburse timely funds, and finance first-of-its-kind technologies makes it indispensable to India’s decarbonization roadmap.

Looking Ahead: Diversification and Digital Innovation

While FY25’s performance has cemented IREDA’s credibility, the focus is now shifting to:

Expanding lending into green hydrogen and energy storage

Adopting digital loan processing for faster turnaround

Tapping capital markets through bonds and green instruments

Enhancing risk assessment models using AI and advanced analytics

As India’s renewable energy sector grows more complex and competitive, IREDA will need to evolve into a more agile, tech-savvy, and capital-efficient organization.

Bottomline: A Pivotal Green Financier With Strong Fundamentals

In an era where green finance is not a choice but a necessity, IREDA’s FY25 performance is both reassuring and aspirational. With loan sanctions nearing Rs. 50,000 crore and a steadily growing disbursement pipeline, the agency has proven its role as a reliable engine behind India’s renewable energy ambitions.

Backed by government policy, a visionary leadership team, and strong sectoral momentum, IREDA is poised to remain one of India’s most important institutional anchors for sustainable infrastructure finance.