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.

Indian Renewable Energy Development Agency Limited (IREDA) has successfully raised ₹453.00 crore through its second issue of perpetual bonds, demonstrating strong investor confidence in the renewable energy financing company. The bond issue, which offered a 7.70% annual rate, was met with overwhelming demand, resulting in an oversubscription of 2.69 times.

Strong Investor Demand

The perpetual bond issue, which had a base size of ₹100.00 crore with a green shoe option of ₹400.00 crore, received total bids worth ₹1,343.00 crore. This significant oversubscription reflects the growing interest in IREDA's debt instruments and the company's pivotal role in financing India's renewable energy sector.

Strengthening Capital Base

IREDA's Chairman and Managing Director, Shri Pradip Kumar Das, commented on the successful fund-raising, stating, "These bonds will strengthen our Tier-I Capital and help scale up renewable energy financing, accelerating India's transition to a greener and more sustainable future." He expressed gratitude to the investors for their overwhelming response and continued trust in IREDA.

Unique Bond Features

The perpetual bonds issued by IREDA carry distinctive characteristics:

• No maturity or redemption date
• Callable only at the company's option
• 7.70% annual coupon rate
• Step-up of 50 basis points once in the bond's lifetime if not called after 10 years
• Rank senior only to share capital

These hybrid instruments provide equity-like features while offering IREDA a stable, long-term source of capital. This capital infusion is expected to play a crucial role in supporting IREDA's mission to finance green energy projects and contribute to India's sustainable energy goals.

Implications for Renewable Energy Financing

The successful bond issue underscores the financial market's confidence in IREDA and the renewable energy sector in India. As a leading financier in the country's renewable energy landscape, IREDA's enhanced capital base is likely to accelerate the funding of various green energy initiatives, supporting India's transition towards a more sustainable energy future.

The oversubscription of IREDA's perpetual bond issue not only highlights the company's strong market position but also signals growing investor appetite for instruments supporting renewable energy development in India.