IREDA shares are set to be in focus on January 9, 2025, as the renewable energy financing company prepares to announce its third quarter results. The company has already provided key business metrics in an update shared on January 1, 2025, offering investors a preview of its operational performance.

Loan Book Growth Shows Moderation

The company's loan portfolio demonstrated continued expansion, though at a moderated pace compared to earlier periods. Key growth metrics for the nine-month period reveal a mixed performance across different business parameters.

The loan book growth of 27.6% represents a deceleration from the 31% growth rate achieved in the first half of the fiscal year. Similarly, while nine-month disbursements grew by 44.5%, this marks a slowdown from the 54% growth recorded in H1 FY25.

Quarterly Performance Reflects Challenges

The third quarter specifically showed more subdued performance indicators. Disbursements declined by 5.5% during the quarter, while sanctions nearly halved compared to the same period last year. This contrasts sharply with the robust growth seen in earlier quarters, where sanctions had grown by 86% in the first half.

Investors will particularly focus on core income growth during the quarter, which had surged nearly 50% year-on-year during the September quarter.

Asset Quality Under Scrutiny

Asset quality metrics have gained increased attention following the Gensol issue, making NPA levels a key focus area for the upcoming results. The September quarter showed improvement in both gross and net NPA ratios.

The sequential improvement in asset quality indicators provides some reassurance, though investors will seek further clarity on the sustainability of this trend.

QIP Plans Await Clarity

Market participants are also awaiting updates on the company's proposed Qualified Institutional Placement (QIP) to raise up to ₹3,000 crore. The fundraising initiative, first reported exclusively by CNBC-TV18 on November 18, represents a significant capital expansion plan that could support the company's growth trajectory.

Stock Performance Reflects Market Concerns

IREDA shares closed 3.5% lower on Thursday at ₹140.95, reflecting ongoing market concerns about the company's performance. The stock has faced significant pressure over the past year, declining over 35% in the last 12 months and falling 55% from its record high of ₹310.

The upcoming Q3 results will be crucial in determining whether the company can address investor concerns about asset quality, business momentum, and capital raising plans.

Source: https://www.cnbctv18.com/market/ireda-q3-results-core-income-gross-net-npa-asset-quality-qip-share-price-reaction-ws-e-19817355.htm

Shares of Indian Renewable Energy Development Agency are set to be in focus on Friday, January 9, as the public sector undertaking announces its December quarter (Q3 FY26) results. The stock closed 3.30% lower at ₹141.18 on the NSE on Thursday, January 8, reflecting recent profit booking activity.

Stock Performance and Market Context

The PSU stock has experienced significant volatility in recent periods. On a weekly scale, IREDA shares declined nearly 4.00%, positioning to end its two-week winning streak. The year 2025 has been particularly challenging for the stock, which suffered a substantial loss of 35.00% compared to the benchmark Nifty 50's gain of 10.50%.

Technical Analysis Reveals Bullish Signals

Despite recent underperformance, technical indicators suggest potential recovery ahead. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, identified several encouraging technical developments:

Patel noted that the stock's price action confirmed strength with a close above the previous swing high, improving the probability of further upside. Based on this technical structure, he suggested traders may consider buying on dips in the ₹145.00-142.00 zone, with upside potential toward ₹160.00. A strict stop loss should be maintained at ₹134.00 on a daily closing basis to manage risk.

Q3 FY26 Results Expectations

Analysts maintain optimistic expectations for IREDA's upcoming quarterly results, driven by India's accelerating renewable energy push. Seema Srivastava, Senior Research Analyst at SMC Global Securities, expects positive results supported by continued strong loan growth and stable earnings.

Key Performance Metrics Expected

Srivastava highlighted that loan disbursements are likely to rise in double digits, while loan sanctions are expected to show modest increases, reflecting sustained demand for renewable project financing across solar, wind, and other clean energy segments. Net interest margins and asset quality are also anticipated to improve during the quarter.

Key parameters to monitor include:

• Net interest income (NII)
• Profit after tax (PAT)
• Asset quality indicators
• NPA ratios
• Capital adequacy

Analyst Perspectives on Fundamentals

Khushi Mistry, Research Analyst at Bonanza, emphasized that IREDA exhibits strong fundamentals driven by robust loan book growth and renewable energy sector tailwinds, though the stock has underperformed amid market volatility. Q3 FY26 earnings are expected to reflect continued operational strength based on provisional updates showing 29.00% year-over-year loan sanctions growth and 28.00% loan book expansion.

However, Mistry cautioned about potential risks, noting that high leverage exposes the company to interest rate hikes and policy shifts. Additionally, potential NPAs may rise if the renewable energy sector faces execution delays.

Market Outlook

Previous comparable quarters demonstrated healthy profitability and steady expansion in net worth, supported by strong growth in interest income. The renewable energy financing sector continues to benefit from government policy support and increasing private sector investment in clean energy projects, providing a favorable operating environment for IREDA's business model.