Indian Renewable Energy Development Agency (IREDA), the state‑owned non‑banking financial company that finances renewable energy projects, has been in the spotlight since its listing last year. On 19 August 2025 the stock was trading around ₹148.03 per share in morning trade, up roughly 0.43 % from the previous close. That price is about 44 % below its 52‑week high of ₹265.80 and only about 8 % above the 52‑week low of ₹137.01, highlighting the sharp correction it has seen over the past few months. Over the last year the stock has delivered a negative return of almost 39.5 %, and it is down about 31 % in the current calendar year, reflecting investors’ concerns about high valuations, rising interest rates and the pace of project disbursements.
Yet the company’s underlying business remains tied to one of India’s fastest‑growing sectors. IREDA provides loans and other financing to solar, wind, hydropower and bio‑energy projects across the country. With the government targeting 500 gigawatts of renewable energy capacity by 2030 and encouraging domestic manufacturing through production‑linked incentives, the pipeline for green projects is robust. IREDA’s management has indicated that its order book continues to grow and that it plans to diversify into emerging areas such as green hydrogen and energy storage.
Market analysts tracking the stock note that while the recent decline has eroded near‑term returns, it has also made valuations more reasonable. Research houses estimate a fair value of around ₹196 per share over the next 12 months, implying upside potential of roughly 32 %. However, most recommend a ‘hold’ stance rather than an aggressive buy because of lingering concerns about asset quality, high leverage and the possibility of further market volatility. They point out that IREDA’s net non‑performing assets remain higher than some peers and that sustained earnings growth will depend on timely repayments from renewable energy developers.
For retail investors, the takeaway is that IREDA offers exposure to India’s renewable energy growth story but comes with its own set of risks. Those who already hold the stock may consider staying put to benefit from the anticipated sectoral tailwinds, while new investors should weigh their risk appetite and time horizon before committing funds.
