Synopsis:
The company received approval to raise funds via 54EC bonds. With strong financial growth, reduced NPAs, and broad renewable energy financing, it continues driving India’s clean energy transition effectively.
The shares of the non-banking financial institution gained up to 2 percent in today’s trading session after the company received government nod to raise funds via capital gains bonds.
With a market capitalization of Rs 47,405.78 crore, the shares of Indian Renewable Energy Development Agency Ltd were trading at Rs 168.95 per share, increasing around 1.84 percent as compared to the previous closing price of Rs 165.90 apiece.
The shares of Indian Renewable Energy Development Agency Ltd have seen bullish movement after receiving government approval to raise funds through 54EC capital gains bonds, becoming the sixth PSU allowed to do so after REC, PFC, NHAI, HUDCO, and IRFC. Funds raised must be used for renewable energy projects that can independently service their debt from project revenues, without state government support.
Investors can save long-term capital gains tax under Section 54EC of the Income Tax Act by investing up to Rs.50 lakh annually in 54EC bonds. Though these bonds offer a lower interest rate of 5.25% and have a five-year lock-in, they provide significant tax-exemption benefits on property sale gains.
Also read: Top 5 Loss Making Indian Companies in FY25
Looking forward to the company’s financial performance, revenue increased by 37 percent from Rs 1,391 crore in Q4FY24 to Rs 1,904 crore in Q4FY25. Further, during the same time frame, net profit increased by 49 percent from Rs 337 crore to Rs 502 crore.
IREDA supports a wide spectrum of renewable energy sectors, including traditional technologies like solar, wind, hydro, and waste-to-energy, as well as emerging fields such as green hydrogen, EV infrastructure, and fuel cells. It offers end-to-end financial solutions from project term loans and refinancing to securitization, top-up loans, and loan syndication, ensuring project viability from planning to execution.
IREDA has shown a consistent improvement in asset quality, with Gross NPA reducing from ₹2,442 crore (8.77%) in FY21 to ₹1,866 crore (2.45%) by FY25. Similarly, Net NPA declined from ₹1,510 crore (5.61%) to ₹1,021 crore (1.35%) over the same period, reflecting effective credit risk management and strengthening of its loan portfolio.
IREDA is a government-owned enterprise operating under the Ministry of New and Renewable Energy (MNRE). IREDA specializes in promoting, developing, and offering financial assistance for new and renewable energy (RE) projects and energy efficiency and conservation (EEC) projects.
Written by Abhishek Singh
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