Indian Renewable Energy Development Agency Ltd.
NSE: IREDAIndian Renewable Energy Development Agency Ltd.: A 30-second snapshot
IREDA (Indian Renewable Energy Development Agency) is a government-backed NBFC lender financing renewable energy projects, trading at ₹128.25 with a PE of 18.8x and forward PE of 15.5x. The stock sits 6.7% below its 200-DMA and is down 17.6% over the trailing year, having drawn down 30.9% from its 52-week high. Five-year revenue CAGR of 40.8% and earnings CAGR of 32.5% reflect rapid loan-book expansion, while a D/E of 554.1 with a rising debt trend and zero FCF-positive years characterise the leverage profile typical of development-finance lenders.
P/E
18.8
Forward P/E
15.5
ROE
—
Debt / Equity
554.12
Profit Margin
+46.0%
Div. Yield
+0.9%
5Y ROE > 15%
1/5
5Y FCF > 0
0/5
Quality
48/100
News
8 headlines · 1 positive · 0 negative
IREDA's Rs.200 Crore Deal: CMS IndusLaw Advises on Uttar Pradesh Solar Power Project Sanction - LawChakra
LawChakra
Number of shareholders of Indian Renewable Energy Development Agency Ltd. – NSE:IREDA - TradingView
TradingView
IREDA CMD highlights India's renewable energy growth at ICMAI conference - PSU Watch
PSU Watch
CMD, IREDA Inspires CMAs at ICMAI's Eastern India Regional Students' Conference 'Gyanothhan 2026' - PSU Connect
PSU Connect
CMD IREDA Unveils 3C Mantra - Tathya
Tathya
Recent context
- ·IREDA CMD highlighted India's renewable energy growth trajectory at the ICMAI Eastern India conference (May 2026) and unveiled a 3C Mantra framework — recent news flow is dominated by promotional and conference activity rather than operational or financial developments.
- ·A ₹200 crore loan sanction for a Uttar Pradesh solar power project (April 2026, advised by CMS IndusLaw) represents incremental disbursement activity consistent with the company's mandate, though individual project-level announcements are routine for a development lender of this scale.
- ·RSI at 46.9 is in neutral territory; the 3-month price change is near flat at +0.09%, with the stock consolidating between identified support at ₹121–124 and resistance at ₹134–143 — a range of roughly 10% width around current levels.
Strengths
- +5-year revenue growth of 40.8% and earnings growth of 32.5% reflect sustained loan-book expansion in line with India's renewable energy buildout.
- +Profit margin of 45.95% is consistent with government-backed NBFC lenders that carry sovereign-adjacent funding advantages and low credit-loss provisioning history.
- +Forward PE of 15.5x represents a compression of 3.3 points from the trailing PE of 18.8x, suggesting the market is pricing in near-term earnings normalisation.
- +Dividend yield of 0.94% provides a small income component; quality score of 59 ranks IREDA first of 6 in its sector peer group as constructed.
Weaknesses
- −D/E ratio of 554.1 with a rising debt trend and zero FCF-positive years across available history signals that capital generation is entirely dependent on external borrowings and disbursement cycles — any increase in borrowing costs or NPA formation directly pressures the balance sheet.
- −Stock has declined 17.6% over the trailing 12 months and sits 30.9% below its 52-week high, trading below the 200-DMA (₹137.51) for a sustained period, with the 50-DMA (₹123.65) offering the nearest identified support zone.
- −ROE data is unavailable; only 1 year in recorded history shows ROE above 15%, and the consistency score of 42 of 100 reflects irregular earnings quality relative to the multi-year growth headline.
- −Analyst coverage consists of a single data point with no mean rating, providing minimal third-party analytical depth; peer comparisons are structurally compromised by grouping with large diversified banks and insurance companies.
Open questions
- ?Given that IREDA's 5-year growth rates (revenue +40.8%, earnings +32.5%) reflect rapid loan-book expansion, what assumptions about credit quality, NPA formation, and provisioning underpin the sustainability of that growth in a higher-for-longer interest rate environment?
- ?The D/E of 554.1 is a structural feature of development-finance NBFCs, but how does IREDA's funding mix (government borrowings vs. bond markets vs. ECB) and the maturity profile of liabilities compare to the tenor of its renewable energy loans?
- ?With the stock 30.9% below its 52-week high and 17.6% lower over 12 months, what specific catalysts — policy announcements, Q-o-Q loan sanctions, NPA disclosures, or fundraising news — have historically moved the price materially in either direction?
- ?IREDA's mandate is renewable energy finance, yet it is classified in a Banking sector peer group alongside HDFC Bank and Bajaj Finance — how meaningful is a PE or quality-score comparison across entities with such different risk profiles, and which comparable NBFC peers would provide a more relevant benchmark?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IREDA | Indian Renewable Energy Development Agency Ltd.You're viewing | 18.8 | — | 59 |
| Industry avg | across 5 peers | 32.0 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.8 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.1 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.1 | +11.3% | 20 |
Technical state
Current price
₹128.25
SMA 50
₹123.65
SMA 200
₹137.51
RSI (14)
46.9 (neutral)
From 52w high
-30.9%
1Y return
-17.6%
3M return
+0.1%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highD/E ratio of 554.1 (rising trend) is structurally very high; IREDA is an NBFC lender so leverage is expected, but at this level any deterioration in asset quality or funding costs flows directly into solvency metrics. FCF-positive years: 0 of available history, and consistency score is 42 of 100.
- highPrice at ₹128.25 is 6.7% below the 200-DMA (₹137.51) and has declined 17.6% over the trailing 12 months. Drawdown from 52-week high is 30.9%, indicating sustained and material price erosion.
- mediumROE data is unavailable; only 1 of available history years recorded ROE above 15%. Quality score of 59 places IREDA ranked 1st of 6 in the peer set (the peer set is heterogeneous banking/NBFC names, limiting comparability).
- mediumSector peer group (HDFC Bank, Axis Bank, Bajaj Finance, HDFCLIFE, BAJAJFINSV) consists of structurally different businesses. PE rank of 3rd of 6 at 18.8x vs. peers ranging 14.8x–69.1x reflects peer heterogeneity rather than a clean valuation signal.
- lowNews sample of 8 headlines is thin; 7 of 8 are neutral, dominated by CMD conference appearances and a ₹200 crore UP solar project sanction. Sentiment distribution may not capture full market reaction to recent earnings.
- lowAnalyst coverage is sparse: only 1 analyst in dataset with no mean rating reported. Single-analyst data is not a statistically reliable consensus signal.
Cross-section contradictions
- 5-year revenue growth of 40.8% and earnings growth of 32.5% are strong multi-year compounders, yet the stock has declined 17.6% over the trailing 12 months and 30.9% from its 52-week high — recent price action has diverged sharply from the longer-term fundamental growth trend.
- Profit margin of 45.95% is high and typical of a government-backed lender, yet FCF-positive years stands at 0 across available history and consistency score is 42 of 100 — the reported margin and capital-generation quality metrics point in opposing directions.
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 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days