Despite a 29% jump in revenue and strong loan book growth, IREDA shares slid as profit dropped 36% in Q1 and analysts flagged rising expenses, asset quality concerns, and weak technicals.

Indian Renewable Energy Development Agency (IREDA) shares declined following a sharp fall in quarterly profit, even as the company secured approval from the Central Board of Direct Taxes (CBDT) to issue tax-exempt bonds.

At the time of writing, shares of IREDA were trading at ₹161.33, down 4.9% on the day.

SEBI-registered analysts Saurabh Sahu, Varunkumar Patel, and Prabhat Mittal weighed in on the stock and outlook, following its weak performance in the first quarter (Q1 FY26).

Varunkumar Patel believes that the profit drop in Q1 is a short-term setback, as its loan book expansion and income growth show resilience. 

He pointed to a 36% year-on-year drop in net profit to ₹247 crore in the first quarter (Q1), driven by a steep 60% jump in expenses, including finance costs and forex losses. 

However, he noted strong topline momentum: revenue rose 29% to ₹1,948 crore, the loan book grew 26.5% year-on-year to ₹79,941 crore, and net worth improved to ₹12,042 crore.

Loan sanctions and disbursements also grew at 28.5% and 31.1% year-on-year, respectively. 

Patel acknowledged the asset quality concern with exposure to Gensol but maintained a broadly positive long-term view backed by strong execution and loan growth.

In the short-term, he added that ₹157 is a crucial near-term support, and a breakdown below that may extend losses toward ₹137.

Meanwhile, Sahu highlighted the government’s July 9 approval allowing IREDA to issue 5-year tax-saving bonds, providing investors a capital gains exemption route while supporting clean energy projects.

SEBI RA Prabhat Mittal flagged a more cautious technical view, stating that IREDA “looks weak on the chart” with a pattern of lower highs and lower lows. 

He noted that the stock is trading below all key moving averages, sees ₹120 as a possible near-term level, and identified ₹187 as a major resistance.

On Stocktwits, retail sentiment was ‘bearish’ amid ‘high’ message volume.

The stock has declined 27.3% so far in 2025.

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