The Indian Renewable Energy Development Agency (IREDA) is making headlines with its recent announcement regarding a significant borrowing initiative. On March 25, 2025, the state-backed organization disclosed that its board has greenlit a borrowing plan for the upcoming financial year 2025-26, amounting to an impressive ₹30,800 crore. This strategic move aims to bolster IREDA’s financial capabilities as it continues to support India’s renewable energy ambitions.
IREDA’s Robust Borrowing Strategy
In an official exchange filing released after market hours, IREDA confirmed that its Board of Directors had convened to approve this substantial borrowing program. The funds will be raised through various channels, including:
- Bonds
- Credit lines from international institutions
- External commercial borrowings
- Diverse loan types
This diverse approach to raising capital showcases IREDA’s commitment to expanding its financial resources to further its mission in the renewable energy sector.
Recent Developments and Stock Performance
Earlier this month, IREDA had already increased its borrowing limit for the current fiscal year 2024-25 by ₹5,000 crore, raising the total to ₹29,200 crore, up from ₹24,200 crore. This proactive financial management has sparked interest among investors, especially as IREDA’s stock has shown a notable performance, including a 13% rally over the past few trading sessions.
As of the latest trading session, IREDA shares closed at ₹169.85 on the BSE, reflecting a slight decline after recent gains. Despite this dip, the stock has appreciated over 8% this month amid an overall recovery in the Indian stock market.
Positive Outlook from Analysts
Analysts at Geojit Financial Services remain bullish on IREDA’s stock. They attribute the anticipated growth to strong fundamentals and positive technical indicators. Notably, IREDA’s loan portfolio has surged by 36% to ₹68,960 crore in the first nine months of FY25, leading to a 30.82% year-on-year increase in profit after tax, which now stands at ₹1,197 crore.
Moreover, improvements in asset quality are evident, with the Gross NPA ratio decreasing from 2.90% in 9MFY24 to 2.68% in the current fiscal year. This upward trajectory aligns with the Indian government’s ambitious target of achieving 500 GW of non-fossil fuel energy capacity by 2030, indicating a robust opportunity for further expansion and financing.
Technical Analysis and Future Projections
From a technical standpoint, Geojit Financial Services predicts a potential short-term rebound for IREDA shares. Despite experiencing a 45% decline from its peak, indicators such as the RSI have shown signs of recovery, currently positioned at 42, while the MACD has turned positive. This suggests a re-emerging momentum that could drive prices higher in the near future.
The brokerage anticipates IREDA shares may target the ₹196 mark within the next 3-6 months, provided it maintains a buying range of ₹153-156. A stop-loss recommendation has been set at ₹139, ensuring investors can manage their risks effectively.
In summary, IREDA’s recent financial maneuvers and the positive sentiment among analysts present a compelling narrative for stakeholders interested in the renewable energy sector. As the agency continues to expand its capabilities, it remains a key player in India’s journey towards sustainable energy solutions.
