Indian Renewable Energy Development Agency Ltd.
NSE: IREDAIndian Renewable Energy Development Agency Ltd.: A 30-second snapshot
IREDA trades at a trailing PE of 17.77x (11.72x forward) with a profit margin of 45.95% and a debt-to-equity ratio of roughly 5.66x that is on a rising trend, a leverage profile broadly typical for an NBFC lender. The stock is priced at ₹119.59, below both its 50-day (₹124.55) and 200-day (₹130.93) moving averages, down 20.11% over the past year. In July 2026 the company classified Gensol Engineering and its EV-leasing subsidiary as fraud accounts and reported the matter to the RBI.
P/E
17.8
Forward P/E
11.7
ROE
—
Debt / Equity
565.67
Profit Margin
+46.0%
Div. Yield
+1.0%
5Y ROE > 15%
1/5
5Y FCF > 0
0/5
Quality
41/100
News
8 headlines · 1 positive · 2 negative
Luthra and Luthra advises IREDA on securing ¥28 billion loan from SMBC GIFT City - Bar and Bench
Bar and Bench
IREDA classifies Gensol Engineering, subsidiary as fraud accounts - BusinessLine
BusinessLine
IREDA declares Gensol Engineering, Gensol EV Lease accounts as fraud; reports to RBI - CNBC TV18
CNBC TV18
IREDA appoints J.V.N Subramanyam as Government Nominee Director - scanx.trade
scanx.trade
Dr Bijay Kumar Mohanty Takes Additional Charge as CMD of IREDA - Elets eGov
Elets eGov
Recent context
- ·Jul 10-11, 2026: IREDA classified Gensol Engineering and its EV-leasing subsidiary as fraud accounts and reported the matter to the RBI.
- ·Jul 14, 2026: IREDA secured a ¥28 billion loan from SMBC via GIFT City, per Bar and Bench reporting.
- ·Late July 2026: Leadership updates — J.V.N. Subramanyam appointed Government Nominee Director (Jul 23) and Dr. Bijay Kumar Mohanty took additional charge as CMD (Jul 2).
Strengths
- +Profit margin of 45.95%, consistent with the operating profile of a government-backed lender.
- +Forward PE of 11.72x sits below the trailing PE of 17.77x, reflecting market-implied near-term earnings growth (based on a dataset of only 2 analysts).
- +Secured a ¥28 billion loan facility from SMBC via GIFT City, reported July 14, 2026, diversifying its funding base.
- +Trailing PE of 17.77x ranks 3rd-lowest of 6 in its sector peer set (range 13.84x-59.88x), though the group spans banks, an NBFC and an insurer and comparability is limited.
Weaknesses
- −In July 2026, IREDA classified Gensol Engineering and its EV-leasing subsidiary as fraud accounts and reported the matter to the RBI — a company-specific asset-quality and governance event.
- −Debt-to-equity of approximately 5.66x is on a rising trend; combined with 5-year earnings growth of -5.9%, only 1 year of ROE above 15% in available history, and a consistency score of 42/100, this points to below-average earnings consistency even allowing for normal NBFC leverage levels.
- −Priced below both the 50-day (₹124.55) and 200-day (₹130.93) moving averages, down 20.11% over 12 months, down 12.33% over 3 months, and 26.4% below the 52-week high.
- −Analyst coverage is thin — 2 analysts in the dataset with no aggregated mean rating reported, limiting the reliability of any consensus read.
Open questions
- ?How large is IREDA's credit exposure to Gensol Engineering and its EV-leasing subsidiary relative to the total loan book, and what provisioning has been taken against the fraud-classified accounts?
- ?Does the rising debt-to-equity trend reflect planned balance-sheet growth aligned with IREDA's renewable-lending mandate, or a shift in funding mix or cost?
- ?What specific near-term catalyst underlies the gap between the 11.72x forward PE and the -5.9% trailing 5-year earnings growth?
- ?Given the heterogeneous sector peer set (banks, a diversified NBFC, an insurer), how would valuation and asset-quality metrics compare against a set of pure-play renewable-financing NBFCs instead?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IREDA | Indian Renewable Energy Development Agency Ltd.You're viewing | 17.8 | — | 33 |
| Industry avg | across 5 peers | 31.7 | +13.1% | 48 |
| AXISBANK | Axis Bank Ltd. | 13.8 | +13.3% | 70 |
| HDFCBANK | HDFC Bank Ltd. | 16.3 | +13.8% | 66 |
| BAJFINANCE | Bajaj Finance Ltd. | 35.1 | — | 47 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 59.9 | +10.8% | 33 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 33.3 | +14.6% | 23 |
Technical state
Current price
₹119.59
SMA 50
₹124.55
SMA 200
₹130.93
RSI (14)
38.9 (neutral)
From 52w high
-26.4%
1Y return
-20.1%
3M return
-12.3%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highIn July 2026 (headlines dated Jul 10-11) IREDA classified renewable-energy developer Gensol Engineering and its EV-leasing subsidiary as fraud accounts and reported the matter to the RBI. This is a company-specific asset-quality and governance event tied to a discrete credit exposure, distinct from generic renewable-sector news flow.
- mediumDebt-to-equity is approximately 5.66x (raw Yahoo field of 565.671 is percent-scaled and divides to an x-multiple) on a rising trend. Leverage of this magnitude is structurally normal for an NBFC lender that borrows to fund its loan book, but the rising trend combined with 5-year earnings growth of -5.9%, only 1 year of ROE above 15% in available history, and a consistency score of 42/100 (quality score 33/100) point to below-average earnings and capital-generation consistency.
- mediumPrice of ₹119.59 sits below both the 50-DMA (₹124.55) and 200-DMA (₹130.93). The stock is down 20.11% over the trailing 12 months, down 12.33% over 3 months, and 26.4% below its 52-week high.
- lowThe peer set used for sector comparison (Axis Bank, HDFC Bank, Bajaj Finance, Bajaj Finserv, HDFC Life) spans banks, a diversified NBFC and an insurer rather than pure-play renewable-financing NBFCs, which limits comparability. IREDA's quality score ranks 4th of 6 in this set.
- lowAnalyst coverage in the dataset is limited to 2 analysts with no aggregated mean rating reported, and the ROE field in key metrics is null (persistence data shows only 1 year with ROE above 15%). Both limit the reliability of consensus and profitability reads.
Cross-section contradictions
- Forward PE of 11.72x is well below the trailing PE of 17.77x, implying market-expected near-term earnings acceleration, yet 5-year earnings growth has been -5.9% — the forward multiple embeds an acceleration the trailing 5-year record does not show.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Aug 2026 · rotates through NIFTY 500 every ~5 days