IREDA shares surged 4% following the release of strong Q3 FY26 financial results that demonstrated robust growth across multiple performance indicators. The Navratna PSU, which specializes in financing renewable energy projects, reached an intraday high of ₹142.30 compared to the previous day's closing price of ₹136.65.

Financial Performance Highlights

The company delivered impressive financial results for Q3 FY26, showcasing strong operational performance across revenue and profitability metrics.

The revenue growth underlines sustained credit demand across solar, wind, and other clean energy segments, reinforcing IREDA's position as a key financing backbone for India's energy transition. On a quarter-on-quarter basis, revenue grew 3.50% from ₹2,057.00 crore in Q2 FY26, while profit after tax increased 7.00% from ₹549.00 crore.

Market Performance and Valuation

With a market capitalization of ₹38,823.00 crore, IREDA shares are currently trading at a price-to-earnings ratio of 20.70, compared to the industry average of 20.40. The stock has delivered exceptional returns of 122% since its listing in December 2023, reflecting strong investor confidence in the renewable energy financing sector.

Diversified Loan Portfolio

IREDA's sector-wise loan book exposure as of December 31, 2025, demonstrates a well-diversified portfolio focused on renewable energy segments:

Solar thermal/SPV contributes the maximum share due to IREDA's significant presence in India's largest renewable energy sector and growing demand for solar thermal systems in industrial and commercial applications. The substantial allocation to state utilities provides stability through PSU-related counterparties, while the distribution across wind, hydro, and ethanol energy ensures sectoral diversification.

Asset Quality Concerns

Despite strong revenue and profit growth, the company faces challenges in asset quality management. Net NPAs increased 41% year-on-year to ₹1,448.00 crore, representing 1.68% of the loan book compared to 1.50% in the previous year. This uptick signals potential concerns in the company's recovery segment that warrant monitoring.

Indian Renewable Energy Development Agency ( ireda ) delivered impressive third-quarter results, with shares trading at ₹138.94, up ₹2.33 or 1.71% from the previous close of ₹136.61 as of 12:38 pm on Monday. The stock opened higher at ₹139.99 and touched an intraday high of ₹142.30, though it dipped to ₹137.46 during the session.

Strong Financial Performance in Q3 FY25

The state-owned renewable energy financier reported robust earnings growth across key metrics during the third quarter.

The company's net profit surged 38% year-on-year to ₹584.90 crore in Q3 FY25, up from ₹425.40 crore in the same quarter last year. Net interest income climbed 34.8% to ₹897.50 crore from ₹665.80 crore, driven by expansion in its loan book and improved interest spreads.

Loan Book Expansion and Asset Quality

IREDA demonstrated strong business growth with its outstanding loan book expanding significantly during the quarter.

The company's outstanding loan book grew 28% to ₹87,975.00 crore as of December 31, 2025, compared to ₹68,960.00 crore a year earlier. The company maintained its net NPA ratio at 1.68%, though marginally higher than 1.50% in Q3 FY24.

Nine-Month Operational Highlights

During the nine months ending December 2025, IREDA demonstrated strong operational momentum across its lending activities.

The company sanctioned ₹40,100.00 crore in loans, up 29% year-on-year, with disbursements rising 44% to ₹24,903.00 crore. IREDA raised ₹32,397.00 crore in borrowings during the quarter, including a JPY 26 billion facility from SBI Tokyo.

Market Performance and Shareholding

Market sentiment remained active with 62.70% of traded volume on the sell side against 37.30% on the buy side. The stock has declined 31.06% over the past year but gained 1.84% in the last month. IREDA's market capitalization stood at ₹39,565.21 crore, with the government holding a 71.76% stake in the renewable energy financier.