IREDA (Indian Renewable Energy Development Agency) stock price jumped in today's session as the company reported strong quarterly numbers. IREDA stock is currently looking bullish on technical charts as it has witnessed a strong surge from lower levels. With positive results, even the stock is looking fundamentally strong. Both these factors can offer good returns to investors in IREDA.

On both technical and fundamental fronts, the stock now appears positioned for a sustained upward trajectory, provided it can overcome certain market resistances and sectoral risks.

Strong Financials Anchor Market Optimism

IREDA’s net profit rose by 49% YoY to Rs 502 crore in Q4 FY25, up from Rs 337 crore in the same period last year. This growth was largely driven by a 37% increase in revenue from operations to Rs 1,905 crore, showcasing the company’s ability to scale its lending business in the renewable sector.

Also notable was a 40% surge in interest income, which crossed Rs 1,861 crore, indicating that disbursements and project financing remain on an upward curve. Operating profit climbed 55% to Rs 770 crore during the quarter, while the full-year PAT touched an all-time high of Rs 1,699 crore.

Stock Performance Reflects Investor Confidence

Following the earnings report, IREDA shares jumped over 6.5% intraday to Rs 177.80 on the NSE, eventually settling at Rs 168.16 with a day’s gain of around 9%. This reflects strong investor appetite for renewable energy stocks, especially those with proven financial track records.

Although the stock remains well below its 52-week high of Rs 310, it has surged over 26% in the past month and approximately 16% in the last week, signaling a return of bullish sentiment. However, IREDA still trails its yearly peak, offering room for further upside if fundamentals hold steady.

Technical Indicators Suggest Upward Potential

From a technical standpoint, the stock currently trades with a P/E ratio of 27.91 and a price-to-book of 14.98, reasonable given the rapid revenue and profit growth. The Relative Strength Index (RSI) stands at 57.32, suggesting neutral territory—neither overbought nor oversold.

Chartists note that the stock has cleared its recent resistance around Rs 166, and if momentum continues, next resistance is expected around Rs 185–190. Support is likely to emerge in the Rs 152–158 range in case of profit-booking or broader market weakness.

Tailwinds from Renewable Energy Policy

IREDA stands to benefit significantly from India’s clean energy ambitions. The government has outlined a goal of 500 GW of non-fossil fuel capacity by 2030, which will require sustained financing. As a PSU under the Ministry of New and Renewable Energy (MNRE), IREDA is at the epicenter of green energy financing in India.

The company’s loan book expanded 28% YoY to Rs 76,282 crore, reflecting its growing reach and importance in enabling project execution. The approval for a borrowing program of Rs 30,800 crore for FY26 further underlines its strategic role in the renewable financing ecosystem.

Analyst Sentiment Remains Largely Bullish

Market analysts maintain a positive stance on IREDA, buoyed by its earnings visibility and structural positioning. According to Trendlyne, the average 12-month price target stands at Rs 209, which offers a potential upside of over 25% from current levels.

Analyst Highlights:

Gaurang Shah (Geojit Financial): Projects near-term targets of Rs 200–220, citing the company’s robust growth metrics and leadership in green financing.

Rajesh Sinha (Bonanza Group): Sees continued growth supported by an expanding loan book and sector tailwinds.

Jatin Gedia (Mirae Asset Sharekhan): Cautions about resistance at Rs 166 but acknowledges that sustained trading above this level can unlock further gains.

Osho Krishan (Angel One): Highlights Rs 130–140 as strong support zones, but calls attention to potential resistance around Rs 155–162.

Arun Kejriwal: Urges caution due to past overextension (stock rose from Rs 32 to Rs 320), suggesting that some consolidation may be required.

Asset Quality Remains a Monitorable Risk

While the earnings were strong, IREDA’s asset quality showed slight deterioration. Gross NPAs stood at 2.45% and net NPAs at 1.35% in Q4 FY25, up from previous levels. Though not alarming, it’s a development that warrants attention, especially if economic conditions tighten or if renewable project execution faces delays.

Moreover, the stock’s volatility profile remains elevated. With a sharp drop of 24% earlier in 2025, followed by a steep recovery, IREDA remains a high-beta stock. Investors should be aware of potential swings due to both internal and external factors.

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