IREDA Posts 27% Profit Surge in Q3 FY25

IREDA Reports Robust Q3 FY25 Results with 27% Net Profit Growth

Indian Renewable Energy Development Agency Ltd (IREDA), a leading state-run financier in the renewable energy sector, announced impressive financial results for the third quarter of FY25. The company reported a significant 27% year-on-year (YoY) increase in net profit, amounting to ₹425.38 crore, driven by strong growth across its key operational metrics.

 Strong Financial Performance

IREDA's total revenue from operations surged by 35.6% YoY to ₹1,698.45 crore for Q3FY25, compared to ₹1,208.10 crore in the same period last year. The net interest income (NII) also saw a remarkable increase of 39% YoY, reaching ₹622.3 crore, up from ₹448.1 crore in Q3FY24.

In terms of loan operations, IREDA sanctioned loans worth ₹31,087 crore during the quarter, marking a substantial 129% growth from ₹13,558 crore a year ago. The company’s loan disbursements also rose by 41% YoY to ₹17,236 crore. The outstanding loan book stood at ₹69,000 crore, reflecting a 36% YoY increase.

 Operating Margins and Asset Quality

Despite the impressive revenue growth, IREDA’s operating margins experienced a slight decline. The operating margin for the quarter dropped to 30.42%, down from 33.72% in the corresponding period last year, indicating a decrease of 3.3%. However, the company’s asset quality showed improvement, with the gross non-performing assets (NPA) ratio reducing to 2.68% from 2.90% a year ago.

 Balance Sheet and Stock Performance

IREDA’s net worth grew by 21% YoY to ₹9,842.07 crore, compared to ₹8,134.56 crore in the same period of the previous year. The debt-equity ratio also increased to 5.89 times from 5.13 times in Q3FY24, indicating a higher leverage to support future growth.

The company’s stock performance has been noteworthy over the past year. After setting its IPO price at ₹32 in late 2023, the stock soared to a record high of ₹310. Although it has since traded about 30% below this peak, it has still provided substantial returns, with the stock closing at ₹215.90 apiece, down 3.31% after the results were announced.

Future Outlook

IREDA remains optimistic about its future prospects. The company’s focus on the renewable energy sector and its foray into the retail segment are expected to drive business growth and improve margins. Additionally, the recent capital raising approval of ₹4,500 crore will further strengthen its balance sheet, positioning the company for sustained growth.

In recognition of its achievements, IREDA received multiple awards at the 14th PSE Excellence Awards, including Gold Awards for Corporate Governance and Corporate Social Responsibility & Sustainability, and a Silver Award for Operational Performance Excellence.

Conclusion

IREDA’s robust Q3FY25 performance underscores its strong position in the renewable energy sector. With a solid financial foundation and strategic initiatives in place, the company is well-poised to continue its growth trajectory and deliver value to stakeholders.