IREDA Share Price Tanks 40% From Peak: Could This Be the Reason?

IREDA, once a stock market star with a rally that saw its shares triple within a year, is now facing headwinds. In 2025, IREDA share price lost over 40% from its peak, with the stock declining 28% year-to-date. A key reason behind the sell-off? Mounting concerns over asset quality — particularly its exposure to the Gensol Group.

What Should Investors Know About IREDA Share Price? 

IREDA share price has performed poorly in recent times. This is due to increasing investor anxiety over rising NPAs and future earnings pressure. Since its all-time high of ₹283 in July 2024, the stock has corrected by nearly 43.6%.

However, investors should note that IREDA’s exposure to the Gensol Group is just a small fraction of its total loan book.

IREDA’s Loan Portfolio Has Sparked Risk Management Concerns

IREDA has an exposure of ₹470 crore to the Gensol Group, including a term loan of ₹254.9 crore and working capital loans of ₹215.7 crore. In a major development, the National Company Law Tribunal (NCLT) admitted IREDA’s insolvency petition against Gensol — confirming the borrower's financial distress.

This case has brought IREDA’s risk management under scrutiny, especially as it aims to position itself as a key driver of India’s green energy push.

What Does IREDA Q1 FY26 Earnings Results Indicate? 

Despite concerns over bad loans, IREDA’s core business performance remains robust. Its Q1 FY26 update highlights continued growth momentum in the green energy sector:

• Loan sanctions rose 29% year-on-year to ₹11,740 crore
• Disbursements increased 31% to ₹6,981 crore
• Total loan book expanded 27% to ₹79,960 crore

These numbers underscore strong demand across renewable energy, green hydrogen, energy efficiency, and EV infrastructure — reaffirming IREDA’s position as a key driver of India’s clean energy transition, even amid near-term asset quality concerns. 

Read more: IREDA Bonds Get Tax-Saving Status Under Section 54EC: A Boost for Green Investments.

Conclusion

IREDA’s exposure to Gensol is a test of both its resilience and market confidence. While the fundamentals of clean energy financing remain solid, the near-term outlook is clouded by asset quality concerns. For long-term investors tracking the stock through their demat account, this could be a wait-and-watch phase rather than a time of taking action.

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.

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