IREDA Share Price Rises After 86% Growth in Loan Sanctions in Q2 FY26

Written by: Aayushi ChaubeyUpdated on: 1 Oct 2025, 4:38 pm IST

IREDA share price gained over 3% as its Q2 business update showed strong loan growth, though rising costs continued to weigh on profits.

IREDA share price rose over 3% on Wednesday, and hit an intra-day high of ₹154.35 on the BSE. At 10:54 AM, the stock was trading 3.34% higher at ₹153.66. In comparison, the BSE Sensex inched up just 0.31% to 80,515.04.

IREDA’s market capitalisation stood at ₹41.29K crore. The stock has seen a 52-week high of ₹239.95 and a 52-week low of ₹137.

Why Are Investors Buying IREDA Shares?

The buying interest was sparked by the company’s September quarter (Q2FY26) business update, which showed a sharp jump in loan activity.

Loans sanctioned: ₹33,148 crore in Q2FY26 vs ₹17,860 crore a year ago, up 86%
Loan disbursements: ₹15,043 crore vs ₹9,787 crore last year, up 54%
Loan book outstanding: ₹84,445 crore vs ₹64,564 crore a year ago, up 31%

These strong numbers showed continued demand for renewable energy financing, boosting investor confidence.

Profit Pressure Continues

Despite the business growth, IREDA’s earnings have been under stress. In the June quarter (Q1FY26), net profit dropped 35.6% year-on-year to ₹246.88 crore from ₹383.7 crore in Q1FY25. Sequentially, profit plunged over 50% from ₹501.79 crore in Q4FY25.

Revenue from operations rose 29% year-on-year to ₹1,947.60 crore and grew 2.3% quarter-on-quarter. However, rising financing costs—which increased to ₹1,218 crore from ₹975 crore a year ago—hurt margins and profits.

About IREDA

Founded in 1987, IREDA is a public limited company under the Ministry of New and Renewable Energy (MNRE). It is India’s largest pure-play green financing NBFC, dedicated to funding renewable energy and energy efficiency projects.

Its services include:

Financing and support for renewable energy projects
Assistance for equipment manufacturing
Post-commissioning and transmission support

Operating with the motto “Energy for Ever”, IREDA has played a central role in supporting India’s clean energy goals.

Conclusion

IREDA’s Q2 update showed strong loan growth and a healthy pipeline of renewable energy projects, which lifted its stock price. However, rising costs and shrinking profits remain challenges for the company. Investors will be watching its upcoming quarterly results closely to gauge whether business growth can offset margin pressures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Oct 1, 2025, 11:03 AM IST

Aayushi Chaubey

Aayushi Chaubey is a finance enthusiast with a year of experience in the market research industry. She loves to decipher the impact of real-world developments on stock markets and how investors can make smart investment decisions to meet their long-term goals.

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