The share price of Indian Renewable Energy Development Agency (IREDA) witnessed a sharp intraday rise of nearly 2% during trading on Thursday, January 1. This upward movement was triggered by the state-owned green financier announcing a powerful business performance update for the third quarter of the financial year 2025-26.
Market Reaction and Share Price Movement
In early morning trades on Thursday, the public sector undertaking (PSU) stock climbed as much as 1.7% to reach ₹142.30 per share. However, the initial enthusiasm was partially tempered later in the session. The stock retreated from its peak and touched an intraday low of ₹138.80. This was compared to its previous closing price of ₹139.90 on the Bombay Stock Exchange (BSE).
Robust Q3 FY26 Operational Performance
In a regulatory filing submitted on Wednesday, IREDA revealed impressive growth metrics for the quarter ended December. The company's loan sanctions surged by 29% year-on-year, reaching a substantial ₹40,100 crore. This marks a significant increase from the ₹31,087 crore sanctioned in the same quarter of the previous financial year.
More importantly, the actual disbursement of loans also displayed remarkable strength. Disbursements grew at an even faster pace, jumping 44% year-on-year to ₹24,903 crore. This figure stood at ₹17,236 crore during the corresponding period last year.
Consequently, the company's total outstanding loan book expanded considerably. By the end of the December quarter, it had grown to ₹87,975 crore, registering a 28% increase from ₹68,960 crore a year earlier. The business update, however, did not include specific details on the asset quality for Q3 FY26.
Building on a Strong Foundation from Q2 FY26
The latest quarterly update follows a period of robust financial health demonstrated by IREDA in the preceding quarter. For the September quarter (Q2 FY26), the company had reported a consolidated net profit of ₹549.33 crore. This represented a sharp 41.5% year-on-year increase from ₹388 crore in Q2 FY25.
Its revenue from operations also saw vigorous growth, rising 26.2% year-on-year to ₹2,057 crore. Furthermore, the asset quality had shown sequential improvement in that quarter. Gross non-performing assets (NPAs) eased to 3.97% from 4.13% in the June quarter, while net NPAs declined to 1.97% from 2.06%.
IREDA's Market Journey and Outlook
As India's principal green finance institution, IREDA plays a critical role in funding domestic renewable energy projects. Its portfolio includes solar, wind, hydro, biomass, ethanol production, and energy efficiency initiatives.
The stock's journey since its listing in December 2023 has been volatile. Despite gaining strong momentum initially, it has faced pressure in recent times. IREDA share price has declined over 18% in the last six months and 37% in the past one year. Nevertheless, viewed from a longer-term perspective since its market debut, the stock has delivered multibagger returns of 122.28%.
IREDA shares trade on both the National Stock Exchange (NSE) and the BSE. The stock achieved its 52-week high of ₹234.35 on January 3, 2025, and hit a 52-week low of ₹129.10 on December 9, 2025.
Disclaimer: This news article is for informational and educational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
