IREDA shares continued their upward momentum, trading nearly 6% higher at ₹147.60 per share following the company's provisional third-quarter business update for FY26. This marks the third consecutive session of gains for the renewable energy financier.

Strong Q3 FY26 Business Performance

In an exchange filing released post-market on December 31, IREDA reported robust growth across key business metrics for Q3 FY26:

The company emphasized that these figures are provisional and subject to audit, with final numbers to be released following board approval.

Previous Quarter Highlights

IREDA's Q2 FY26 performance demonstrated strong financial metrics and improved asset quality:

Financial Performance

• Net Profit: ₹549.33 crore, representing a 41.50% year-on-year increase from ₹388.00 crore
• Revenue: ₹2,057.00 crore, marking a 26.20% year-on-year rise

Asset Quality Improvements

• Gross NPA: Improved to 3.97% from 4.13% in Q1
• Net NPA: Reduced to 1.97% from 2.06%

Stock Performance and Analyst Coverage

Despite the recent positive momentum, IREDA shares have faced headwinds over longer timeframes. The stock is down nearly 2% in the past month, over 17% in six months, and 37% in 2025, though it has delivered stellar returns of 133% over five years.

Analyst sentiment remains mixed, with two analysts covering the stock—one maintaining a 'buy' rating while the other holds a neutral stance.

Company Profile

IREDA operates as a 'Navratna' public sector enterprise under the Ministry of New and Renewable Energy (MNRE). Founded in 1987, the company functions as a Non-Banking Financial Institution dedicated to advancing and financing ventures in renewable energy and energy efficiency. Guided by its vision of 'Energy for Ever', IREDA plays a crucial role in supporting sustainable energy initiatives across India.

The Indian Renewable Energy Development Agency ( IREDA ) is reportedly considering the introduction of a new solar pump storage scheme specifically targeted at North Eastern states, with the possibility of this initiative being announced in the upcoming budget.

Potential Regional Focus

The proposed scheme would represent a geographically targeted approach to renewable energy development, focusing specifically on the northeastern region of India. This regional emphasis suggests recognition of the unique energy needs and potential of these states in the solar energy sector.

Solar Pump Storage Initiative

The scheme under consideration would center on solar pump storage technology, which combines solar energy generation with pumped storage capabilities. This technology can provide both immediate solar power generation and energy storage solutions, addressing intermittency challenges commonly associated with renewable energy sources.

Budget Announcement Possibility

The timing of this potential announcement aligns with the budget cycle, indicating that the scheme could receive formal recognition and funding allocation through the budgetary process. Such inclusion would provide the necessary financial framework for implementation across the targeted northeastern states.

Strategic Implications

This initiative, if implemented, would contribute to India's renewable energy expansion while addressing regional energy requirements. The focus on northeastern states suggests a strategic approach to ensuring equitable distribution of renewable energy infrastructure development across different geographical regions of the country.