Indian Renewable Energy Development Agency Limited (IREDA), India's largest pure-play green financing NBFC, has taken a significant step towards boosting domestic solar manufacturing capacity. The company has sanctioned a ₹1,134 crore loan to its wholly owned subsidiary, Insolation Green Energy, for the establishment of a 4.5 GW solar cell manufacturing facility in Madhya Pradesh.

Project Details

The total project cost is estimated at ₹1,512 crore, with the remaining ₹378 crore to be funded through internal accruals. The facility will be strategically located in the Manufacturing Zone for Power and Renewable in Narmadapuram district, aligning with the company's backward and forward integration strategy across the solar value chain.

Expansion Plans

IREDA's group has ambitious plans for expansion in the renewable energy sector:

• Achieve 7 GW PV module manufacturing capacity
• Establish 4.5 GW solar cell manufacturing capacity
• Set up 18,000 MTA aluminium frame production

These targets are expected to be realized within two years. Additionally, the group aims to add 3 GW of ingot and wafer manufacturing capacity by 2028, further strengthening its position in the solar energy value chain.

Market Response

The announcement has been well-received by the market:

• IREDA shares traded 1.2% higher at ₹155.80 on the National Stock Exchange (NSE)
• Insolation Energy shares rose 0.30% to ₹199.05 on the Bombay Stock Exchange (BSE)

IREDA's Financial Position

As of June 30, IREDA's financial highlights include:

Upcoming Investor Meetings

IREDA has scheduled a series of meetings with institutional investors and analysts from September 22 to 26. These meetings will take place in Singapore and Japan, conducted through both physical and virtual modes. The company has emphasized that no unpublished price-sensitive information will be discussed during these interactions.

Government Ownership

The Government of India, through the Ministry of New and Renewable Energy, remains the majority shareholder with a 71.76% stake in IREDA as of June 30. This is a slight decrease from the 75% holding reported on March 31, indicating a recent dilution of government stake.

IREDA's commitment to renewable energy financing and its expanding role in India's green energy sector is evident through this latest loan sanction. The move aligns with the country's ambitious targets for renewable energy capacity and domestic manufacturing capabilities in the solar sector.

Indian Renewable Energy Development Agency (IREDA), India's largest pure-play green financing NBFC, has announced plans to meet with institutional investors and analysts in Singapore and Japan from September 22 to 26, 2025. The meetings, scheduled to take place in both physical and virtual formats, will focus on publicly available information about the company's operations and performance.

Q1 Financial Performance

IREDA recently reported its financial results for the quarter ended June 30, revealing a mixed performance:

• Revenue from operations increased by 29% year-over-year to ₹1,949.00 crore ($229.00 million).
• Profit after tax (PAT) declined by 36% to ₹247.00 crore ($29.00 million).
• The outstanding loan book grew by 26% to ₹79,943.00 crore ($9.40 billion).

Asset Quality Concerns

The company's asset quality showed signs of stress during the quarter:

• Gross Non-Performing Assets (NPAs) rose to 4.13% from 2.19% in the previous year.
• Net NPAs increased to 2.06% from 0.95% year-over-year.

Credit Ratings and Government Ownership

IREDA maintains strong credit ratings:

• Domestic credit ratings: AAA/Stable from multiple agencies
• International rating: BBB- long-term and A-3 short-term with a stable outlook from S&P Global

The Government of India's shareholding in IREDA decreased to 71.76% as of June 30, 2025, down from 75% previously.

Operational Highlights

IREDA's lending profile remains diverse, with a presence across 23 states and 4 union territories in India. Key sectors in its loan portfolio include:

Recent Developments

In a significant move, the Government of India has granted Section 54EC Tax Benefit status to IREDA bonds. This allows investors to save on long-term capital gains tax by investing in IREDA bonds, potentially lowering the company's borrowing costs and boosting renewable energy development in India.

Outlook

As IREDA prepares for its upcoming investor meetings, the company faces both opportunities and challenges. While its revenue and loan book have shown strong growth, the decline in profitability and increase in NPAs may be areas of concern for investors. The company's strategic role in India's renewable energy sector and its recent inclusion in the 54EC bonds list could provide avenues for future growth and improved financial performance.

Investors and analysts will likely seek more information on IREDA's strategies to address asset quality issues and capitalize on the growing renewable energy market in India during the upcoming meetings in Singapore and Japan.

Note: All financial figures have been converted from Indian Rupees to US Dollars using an exchange rate of 1 USD = 85.1 INR for consistency.