Indian Renewable Energy Development Agency (IREDA) has announced impressive business performance figures for the period ending September 30, showcasing substantial growth across key financial metrics.

Loan Sanctions Surge

IREDA reported a remarkable 86% increase in loan sanctions, which rose to ₹33,148.00 crore compared to ₹17,860.00 crore in the corresponding period of the previous year. This significant uptick underscores the growing demand for renewable energy financing in India.

Disbursements and Loan Book Expansion

The company's loan disbursements also saw a strong upward trend, growing by 54% to reach ₹15,043.00 crore, up from ₹9,787.00 crore in the same period last year. This increase in disbursements reflects IREDA's active role in funding renewable energy projects across the country.

IREDA's loan book outstanding expanded impressively as well, showing a 31% growth to ₹84,445.00 crore, compared to ₹64,564.00 crore in the previous year. This substantial increase in the loan book indicates the company's expanding footprint in the renewable energy financing sector.

Financial Performance Overview

Here's a summary of IREDA's key financial metrics:

It's important to note that these results are provisional and subject to audit, as stated by the company in its official communication to the stock exchanges.

Market Impact

The strong performance numbers are likely to be well-received by investors and stakeholders in the renewable energy sector. IREDA's growth trajectory aligns with India's renewable energy targets and the increasing focus on sustainable financing.

As the renewable energy sector continues to expand in India, IREDA's role as a specialized financial institution for the sector becomes increasingly crucial. The substantial growth in loan sanctions and disbursements suggests a robust pipeline of renewable energy projects in the country.

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.