Why Are IREDA Shares Falling Today After Q1 Result Announcement?

IREDA Share Price Today: Indian Renewable Energy Development Agency Limited (IREDA) shares declined nearly 5.6% on Friday, a day after the energy public sector undertaking (PSU) announced its first quarter result for financial year 2025-26.

The green energy stock opened lower at Rs 159.05 per share on BSE on Friday, but the stock recovered in the first thirty minutes of the stock market opening. However, it later dipped further. IREDA shares were trading 5.69% lower at Rs 160 per share on BSE at 10:33 am.

IREDA Q1 Result

The Navratna PSU announced a 35.6% decline in its consolidated net profit to Rs 246.88 crore in the June quarter from Rs 383.7 crore reported in the year ago period. The renewable energy firm had reported a net consolidated profit of Rs 501.79 crore in March quarter of financial year 2024-25.

During the June quarter, IREDA's gross NPA declined significantly to 4.13% from 2.45% reported in the previous quarter.

Exposure to Gensol Engineering

The company had also some exposure to Gensol engineering which is currently at the verge of insolvency. IREDA's Rs 470 crore worth of exposure to Gensol Engineering consisted of a term loan worth Rs 254.9 crore, and an additional working capital facilities worth Rs 215.7 crore. IREDA's insolvency petition against Gensol was approved by the National Company Law Tribunal (NCLT).

"We were the first lender to approach NCLT and seek approval for the appointment of an Interim Resolution Professional (IRP) and go ahead with the proceedings. It is a purely promoter related issue and once we take back control of the assets," Pradip Kumar Das, CMD IREDA told CNBC TV-18 while addressing the Gensol matter.

The company's revenue growth for the quarter under review increased by 28.89% to Rs 1,947 crore. The company, in June, had already disclosed itws business momentum update for previous quarter.

IREDA had disbursed around 28.5% year-on-year (YoY) higher loans amounting to Rs 11,740 crore against Rs 6.981 crore disbursed in the same quarter of financial year.

IREDA's loan book stood near to Rs 80,000 crore, which increased by 26.5% during the June quarter against Rs 63,207 crore reported in the year-ago period.

IREDA Share Price Trend

IREDA shares were trading 4.7% lower on Monday. The stock touched its 52-week high mark of Rs 310 per share on BSE on 15 July, 2024. The Navratna PSU stock dipped to its 52-week lowest mark of Rs 137 per share on 17 March, 2025. IREDA stock has a return on equity (RoE) of 16% on BSE.

The Navratna PSU stock's value has declined by 12.12% in one month and by 27.77% since the beginning of the year 2025. The stock valuation has declined by a whopping 45% in one year.

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