Shares of Indian Renewable Energy Development Agency (IREDA) surged more than 4 per cent during the trading session on Wednesday after the state-run financial institution reported a strong set of provisional numbers in its business update for the quarter ended September 30, 2025.
IREDA reported a 86 per cent YoY rise in the loan sanctioned to Rs 33,148 crore, while loan disbursements rose 54 per cent YoY to Rs 15,043 crore. The state-run NBFC said that is its loan book outstanding stood at Rs 84,445 crore at the end of September 30, 2025, up 31 per cent YoY.
IREDA signed a performance-based MoU with the ministry of new and renewable energy to set up strategic targets for the entire financial year on August 25. The center has set a revenue target of Rs 8,200 crore for the financial year 2025-26, implying a target growth of 22 per cent YoY.
Following the Q2 business update, shares of IREDA surged 4.45 per cent to Rs 155.30 on Wednesday, with its market capitalization close to Rs 44,000 crore. The stock has plunged nearly 38 per cent from its 52-week high at Rs 239.95, hit in October 2024. The stock tested its 52-week low at Rs 137 in March 2025.
IREDA had launched its IPO in November 2023, when the company raised a total of Rs 2,150.21 crore by selling its shares for Rs 32 apiece. The stock is currently trading 5 times above its issue price but has crashed more than 45 per cent from its all-time high around Rs 285 apiece. However, analysts continue to remain positive on the stock.
IREDA is uniquely positioned to capitalize on India’s multi-decade clean energy transformation. As the largest dedicated green-focused NBFC-IFC with over 38 years of sectoral experience, IREDA plays a pivotal role in financing India’s renewable ambitions, including emerging sectors such as hybrid RE, battery storage, EV infrastructure, and green hydrogen, said BP Equities.
The planned launch of a retail lending subsidiary for rooftop solar, PM-KUSUM, and energy access will help de-risk the loan book and support margin resilience. With AUM expected to grow at 25-30 per cent CAGR over FY25-30, IREDA offers a strong mix of growth, earnings visibility, and balance sheet strength. We initiate a Buy rating on IREDA stock, setting a target price of Rs 198,” it added.
Even the technical analysts are positive on its momentum indicators, which are showing signs of improvement. The RSI is indicating potential for further upside, strengthening bullish momentum. A sustained breakout beyond Rs 160 levels would reinforce the uptrend and open the possibility of extended gains in the medium term, they say.
Commenting on IREDA on a technical basis, Choice Broking said that the stock has shown signs of a strong recovery after a prolonged consolidation phase near the bottom. It is now consolidating above the crucial R 150 support zone, suggesting that selling pressure has eased and fresh accumulation is emerging at lower levels.
IREDA is facing immediate resistance near the Rs 166 mark, which aligns with the 200-day EMA on the daily chart. A decisive move above this level would confirm a bullish reversal and open the path for further gains. The stock is trading above its 20-day, 50-day, and 100-day moving averages, reflecting underlying strength in the short to medium term, said the brokerage firm.
“Based on this technical structure, we recommend initiating a buy position in the stock. On the downside, Rs 145 would act as a strong support zone, and a breach of this level could temporarily challenge the positive structure, warranting a cautious approach,” Choice Broking added with a target price of Rs 186-200, picking IREDA as its Navratri pick.