IREDA share price suffered a major setback after quarterly results as the stock ended trading session on Friday with 5.6 percent decline. IREDA has managed to recover from yearly lows during the last couple of months but quarterly results have been disappointing for the markets. IREDA has strong support in Rs 148 - 150 range. The Indian Renewable Energy Development Agency (IREDA) stock recently faced a period of increased volatility, marked by a steep decline in its stock price, disappointing quarterly results, and mounting concerns over asset quality. TopNews Team has reviewed the latest developments, financial performance, analyst perspectives, and the evolving sentiment around IREDA. Despite its setbacks, the company’s central role in India’s renewable energy ambitions and government backing offer a nuanced outlook for investors and sector observers.

Recent Stock Performance and Market Sentiment

IREDA’s share price has plummeted nearly 46% from its July 2024 peak of ₹310 to approximately ₹160 as of July 11, 2025. The stock’s trajectory has been sharply negative, with a single-day drop of 5.69% on July 11, and cumulative declines of 12.25% over the past month, 20.46% over six months, and a staggering 43.6% over the past year. In stark contrast, the Sensex has posted a 3.83% gain during the same period, underscoring IREDA’s underperformance.

Technically, IREDA is trading below all major moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—signaling a persistent bearish trend. The stock is consolidating within the ₹160–175 range, with support at ₹158–160 and resistance at ₹175. A decisive close below ₹165 could accelerate selling pressure, potentially dragging the price down to ₹155.

Financial Results and Key Developments

Q1 FY26 proved to be a challenging quarter for IREDA. Net profit plunged 36% year-over-year to ₹247 crore, down from ₹387 crore, despite a robust 29% increase in revenue to ₹1,950 crore. However, surging expenses and financing costs eroded margins, causing profit margin to collapse from 72% to 33%, and earnings per share (EPS) to fall from ₹1.43 to ₹0.91.

Asset quality has come under particular scrutiny. Gross non-performing assets (NPA) surged to 4.1% from 2.5%, while net NPA rose to 2.1% from 1.4%. The spike in NPAs is largely attributed to IREDA’s exposure to Gensol Engineering, which is currently facing insolvency proceedings. Financing costs ballooned to ₹1,220 crore, up from ₹970 crore a year earlier, further compressing profitability.

In June 2025, IREDA executed a Qualified Institutional Placement (QIP), raising ₹2,000 crore by issuing 12.14 crore shares at ₹155.14 each. This move diluted the government’s stake from 75% to 71.76% and was priced at a discount exceeding 4.5% to the floor price—an indicator of subdued investor appetite.

Despite these headwinds, IREDA’s loan book expanded 27% year-over-year to ₹79,960 crore, with loan sanctions rising 29% and disbursements up 31%. The company remains a pivotal financier for India’s renewable energy sector.

Analyst Perspectives and Recommendations

The analyst community remains divided. The consensus ranges from “Hold” to “Outperform,” with an average target price of ₹173 and a low estimate of ₹150. While some analysts highlight asset quality and earnings volatility as key risks, others point to IREDA’s government backing and sectoral growth prospects as reasons for optimism.

• Kranthi Bathini, WealthMills Securities: The stock’s nearly 50% correction and consolidation phase suggest that only long-term, risk-tolerant investors should consider holding.
• Shiju Koothupalakkal, Prabhudas Lilladher: The technical setup is weak; a breakout above ₹175 is needed for a positive trend reversal.
• Ravi Singh, Religare Broking: The stock is likely to remain range-bound unless a significant catalyst emerges; immediate resistance is at ₹175, support at ₹158.
• Drumil Vithlani, Bonanza: The broader trend stays negative below ₹175, with further downside risk if the stock closes below ₹165.
• Anand Rathi Research: In contrast to the consensus, recommends a “BUY” with a target of ₹265, citing long-term growth potential and government support.
• TradingView Consensus: The sole analyst rating in the last three months is “Hold” with a ₹150 target, reflecting prevailing uncertainty.

Broader Sector and Market Context

The renewable energy finance sector has been buffeted by rising interest rates, asset quality concerns, and market volatility. IREDA’s peers—Power Finance Corp. and REC—have outperformed both in stock returns and operational metrics over the past year.

IREDA remains central to India’s ambition of achieving 500 GW of non-fossil fuel capacity by 2030. As the nodal agency for several renewable energy initiatives, it benefits from policy incentives and regulatory support. The loan portfolio is expected to further expand as demand for financing in emerging areas such as green hydrogen and battery storage grows.

Risks and Challenges

Asset quality deterioration stands out as the foremost risk. The sharp rise in NPAs, especially due to Gensol Engineering’s troubles, threatens to erode investor confidence and exert further downward pressure on the share price.

Other challenges include:

• Earnings volatility: Escalating financing costs and operational expenses have made earnings unpredictable, with sustained margin pressure limiting near-term upside.
• Technical weakness: Persistent trading below key moving averages and inability to break resistance levels reinforce a bearish outlook.
• Sectoral headwinds: Macroeconomic pressures, including interest rate trends and global market uncertainty, continue to weigh on the broader finance sector.

Opportunities and Strengths

Despite the turbulence, IREDA possesses several strengths:

• Rapid loan book growth: The company’s expanding loan portfolio positions it well for future growth as renewable energy demand accelerates.
• Government backing: As a Navratna PSU under the Ministry of New and Renewable Energy, IREDA enjoys robust support, aiding its resilience and access to capital.
• Policy tailwinds: India’s ambitious clean energy targets and policy incentives are expected to sustain long-term demand for IREDA’s financing products.

Peer Comparison

Outlook and Strategic Takeaways

Short-term prospects for IREDA remain clouded by caution. Weak earnings, asset quality concerns, and technical fragility suggest continued pressure on the stock, particularly if support at ₹158–160 fails to hold. Most analysts advocate a wait-and-watch approach, with only high-risk investors advised to consider holding at current levels.

Over the longer term, IREDA’s pivotal role in India’s renewable energy transition, coupled with strong government backing and a growing loan book, provide reasons for optimism. If the company can stabilize asset quality and restore profitability, a recovery is plausible—especially as policy support for renewables intensifies.

The prevailing analyst consensus is “Hold/Neutral,” with a few outliers recommending “Buy” for patient, risk-tolerant investors. The average target price of ₹173 suggests modest upside, but downside risks persist if asset quality deteriorates further.

Key Takeaways for Investors

• Volatility is high: Recent earnings disappointments and asset quality issues have led to sharp stock declines.
• Support at ₹158–160: These levels are critical; a break below could trigger further downside.
• Long-term prospects: Dependent on asset quality stabilization and continued policy support.
• Government and sector tailwinds: Could drive recovery if near-term challenges are addressed.