IREDA share price jumps over 5% on strong guidance, ₹4,500-crore QIP buzz

IREDA share price jumped over 5% on Monday, despite the stock market crash today. IREDA stock price rallied as much as 5.51% to ₹212.30 apiece on the BSE.

The gains in shares of Indian Renewable Energy Development Agency Ltd (IREDA) came on the back of strong guidance from the company and its management sharing a tentative timeline for its ₹4,500-crore worth Qualified Institutional Placement (QIP), analysts said.

“IREDA share price is rising despite weakness in the Indian stock market today. This rise in IREDA shares can be attributed to two major reasons: strong guidance by the company post-strong Q3 results 2025 and management highlighting the timeline for ₹4,500 crore QIP,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

In September last year, the ‘Navratna’ PSU company, IREDA, received government approval for raising ₹4,500 crore through fresh equity issue. The Department of Investment and Public Asset Management (DIPAM) gave its approval to the company on September 18, 2024, to raise up to ₹4,500 crore in fresh equity issue through a QIP.

The government is likely to dilute up to 7% stake in IREDA through this QIP.

“The fund-raising exercise aims to strengthen IREDA’s capital base, enabling the organization to scale its financing for renewable energy projects and further accelerate India’s transition to clean energy,” IREDA had said in a regulatory filing.

IREDA Q3 Results

IREDA reported a net profit of ₹425.38 crore in the third quarter of FY25, registering a growth of 27% from ₹335.5 crore in the same period last fiscal year. The company’s total revenue from operations in Q3FY25 increased by 35.6% to ₹1,698.45 crore from ₹1,208.10 crore, year-on-year (YoY).

Net interest income (NII) in the quarter ended December 2024 was up 39% to ₹622.3 crore from ₹448.1 crore, YoY. However, operating margins fell by 330 basis points (bps) to 30.42% from 33.72%, YoY.

The state-owned NBFC’s asset quality improved as the gross non-performing assets (NPAs) dropped to 2.68% in the December quarter, compared to 2.90% in the same period a year ago.

IREDA Stock Price Outlook

IREDA share price has fallen nearly 9% in three months and 27% in six months. The PSU stock has delivered over 87% returns in one year.

“IREDA share price is on an uptrend. The PSU stock has made a strong base at ₹190 but is facing a hurdle at ₹230 to ₹240. Those with IREDA shares in the portfolio are advised to hold the scrip, maintaining a stop loss at ₹190 for the near-term target of ₹230 to ₹240 apiece,” said Sumeet Bagadia, Executive Director at Choice Broking.

For fresh investors, Bagadia advises to initiate momentum buying at the current price for targets mentioned above, maintaining a stop loss at ₹190 per share. 

At 11:20 AM, IREDA shares were trading 2.73% higher at ₹206.70 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.