IREDA shares climb 6% as loan disbursements soar 41% in Q3

Indian Renewable Energy Development Agency (IREDA) shares jumped nearly six per cent on January 1, 2025, following the company’s provisional business update. The public sector enterprise reported an impressive thirty-six per cent growth in its loan book, which stood at Rs 69,000 crore as of December 31, 2024. This is a notable increase from Rs 50,580 crore in December 2023.

The company also highlighted strong momentum in loan sanctions, which surged by one hundred twenty-nine per cent year-on-year to Rs 31,087 crore in 2024, compared to Rs 13,558 crore in 2023. Loan disbursements during the same period grew forty-one per cent to Rs 17,236 crore, from Rs 12,220 crore the previous year.

Market reaction and stock performance
The strong financial performance propelled IREDA’s share price to Rs 227.70 in early trade on the BSE. This marks a continuation of the stock’s stellar run, having delivered a 105 per cent return in 2024. While broader market pressures and foreign investor outflows impacted several stocks, IREDA has remained resilient, rewarding long-term investors.

Despite a significant correction from its all-time high, IREDA’s track record as a wealth creator since its IPO in 2023 has positioned it as a multibagger in the renewable energy sector.

Pioneering renewable energy financing
Founded in 1987, IREDA operates under the Ministry of New and Renewable Energy (MNRE) and is a Navratna public sector company. It specialises in providing financial assistance and services for renewable energy and energy efficiency projects, reflecting India’s ambitious green energy goals.

The company’s robust loan book growth aligns with the government’s focus on transitioning to sustainable energy solutions. Analysts believe IREDA is well-poised to capitalise on the expanding renewable energy market, driven by increasing demand for clean energy financing.

Outlook remains positive
As renewable energy continues to gain prominence globally, IREDA’s strong fundamentals and strategic focus ensure it remains a key player in driving India’s energy transition. Investors and market watchers are optimistic about the company’s ability to sustain growth in 2025 and beyond.