IREDA Shares See Significant Surge
Shares of the Indian Renewable Energy Development Agency (IREDA) have experienced a notable uptrend, rising over 20% across seven consecutive trading sessions, concluding Monday's trading at Rs 119.71 on the BSE. This recent rally comes despite the stock remaining down 14.09% year-to-date, 19.82% over the past year, and 40.38% over the past two years.
Q2 Financial Performance Overview
The state-run renewable energy financier reported a net profit of Rs 552 crore for the September quarter of FY27, a marginal increase of 0.5% compared to Rs 549 crore in the same period last year. Operating profit demonstrated stronger growth, rising 16.5% year-on-year to Rs 904 crore from Rs 776 crore in Q2 FY26. Revenue from operations also saw a healthy increase of 13.9%, reaching Rs 2,344 crore, up from Rs 2,057 crore in the year-ago quarter.
IREDA's asset quality improved sequentially, with Gross Non-Performing Assets (NPAs) declining to 3.57% in Q2 FY27 from 3.76% in Q1 FY27. Net NPAs also eased to 1.08% from 1.23% over the same period. The company's outstanding loan book grew by 15.3% to Rs 97,411 crore at the end of Q2 FY27, compared to Rs 84,477 crore in the corresponding quarter of the previous fiscal year.
Analyst Recommendations for Investors
Given the recent volatility and performance trends, financial experts have offered cautionary advice for IREDA investors. Kranthi Bathini, Equity Strategist at WealthMills Securities, recommended that existing IREDA investors consider selling on rallies and advised against initiating fresh positions at current price levels. Echoing this sentiment, Vishnu Kant Upadhyay, AVP of Research at Master Capital Services, also suggested that investors currently holding the stock contemplate exiting their positions during periods of upward movement.
About IREDA
IREDA, designated as a 'Navratna' Public Sector Undertaking under India's Ministry of New and Renewable Energy (MNRE), plays a crucial role in promoting renewable energy projects by providing specialized financial products and services. As of September 2026, the Indian government holds a significant 71.76% stake in the company.