Shares of Indian Renewable Energy Development Agency (IREDA) Ltd witnessed a strong upward move on Friday, climbing 4.80% to hit an intraday high of ₹174.80. At last check, the stock was trading at ₹174.25, up 4.47% for the day. While this rally brought some cheer to investors, it’s worth noting that the stock is still down by 21.44% on a year-to-date (YTD) basis.
On the financial front, IREDA posted a robust 48.66% year-on-year (YoY) jump in consolidated net profit for the March 2025 quarter (Q4 FY25). The company reported a profit of ₹501.55 crore, compared to ₹337.39 crore in the same quarter of the previous fiscal year (Q4 FY24). Revenue from operations also saw a healthy rise, increasing by 36.93% to ₹1,905.06 crore in Q4 FY25 from ₹1,391.26 crore in the corresponding period last year.
In terms of business growth, IREDA’s loan order book grew by an impressive 28% YoY. For the financial year 2024-25, the total loan book stood at ₹76,250 crore, up from ₹59,698 crore in FY24, underscoring strong demand for financing in the renewable energy sector.
Despite this performance, technical analysts suggest caution. Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, stated that ₹175 is a key resistance level, with support seen at ₹165. A sustained move above ₹175 could push the stock further to ₹180, but in the near term, the trading range is expected to hover between ₹165 and ₹180.
Echoing similar sentiments, Kunal Kamble, Senior Technical Analyst at Bonanza, advised a ‘sell-on-rally’ strategy near ₹170, cautioning that strong resistance may emerge around ₹185. Meanwhile, Shitij Gandhi from SMC Global Securities highlighted a broader trading range between ₹140 and ₹180.
IREDA, a ‘Navratna’ PSU under the Ministry of New and Renewable Energy, plays a pivotal role in India’s green energy transition. The government currently holds a 75% stake in the company. IREDA offers a suite of financial products and services—both fund and non-fund based—catering to renewable energy projects, including project financing, equipment manufacturing, and transmission infrastructure.
Investor Takeaway: While the company’s fundamentals remain solid and its growth trajectory in the renewable sector is promising, current market sentiment suggests a cautious approach. Investors may consider booking partial profits on rallies and re-entering on dips near the support zones.
