IREDA Shares Rise 4% Following 15% YoY Growth in Q3 PAT and 28% Revenue Surge
On January 12, 2026, shares of the Indian Renewable Energy Development Agency (IREDA) jumped about 4% on the stock market after the company released its third quarter (Q3) financial results for the period ending December 31, 2025. Investors reacted quickly to the news that IREDA’s profit after tax (PAT) grew strongly compared with the same quarter last year. At the same time, the company’s revenue climbed sharply, showing that it is selling more services and earning more money. This positive result helped lift the stock price and brought fresh focus to the renewable energy lender.
But this rise in share price is more than just a number. It shows renewed investor trust in IREDA’s role in financing green energy projects. This matters as India pushes to grow clean power and reduce pollution.
IREDA Shares: Q3 FY26 Financial Performance
In the third quarter of FY26 (ended December 31, 2025), Indian Renewable Energy Development Agency (IREDA) recorded impressive growth in key financial areas. The company’s consolidated net profit (PAT) rose about 15.4% year-on-year to ₹1,381.36 crore compared with the same quarter last year. Revenue from operations also grew strongly, climbing 28.2% to ₹6,041.82 crore, a solid sign of expanding business activity.
Over the first nine months of the fiscal year, IREDA’s revenue jumped 27% YoY to ₹6,135 crore, showing sustained momentum beyond just the quarter. Profit before tax (PBT) also increased, up 17% to ₹1,718 crore, suggesting that the company maintained healthy profitability even as it scaled operations.
These strong numbers helped push the stock higher on January 12, 2026, with IREDA shares rising around 4% during intraday trade on the BSE.
IREDA Operational Strength: Loan Book & Disbursements
One of the major drivers of IREDA’s performance is its core lending business in the renewable energy sector. In the nine months ending December 31, 2025, loan sanctions jumped 29% YoY to ₹40,100 crore, and loan disbursements surged 44% YoY to ₹24,903 crore. These trends show strong demand for project financing within India’s clean energy transition.
By the end of December 2025, the outstanding loan book expanded to nearly ₹88,000 crore, up significantly from the prior year. This growth underscores the expanding scale of IREDA’s lending activities across solar, wind, hydro, ethanol, and other green sectors.
What’s Driving IREDA’s Investor Confidence?
The positive quarterly performance and growth in lending activity have helped rebuild investor confidence in the stock. Strong revenue and profit growth reflect IREDA’s ability to maintain earnings while serving a rapidly expanding market.
The state-run lender plays a critical role in financing India’s renewable energy infrastructure, a sector that continues to grow as the country pushes toward its clean energy targets. This strategic positioning adds to the stock’s appeal among market watchers.
Analysts also point to improvements in Net Interest Income (NII), which rose in Q3, showing that IREDA is earning more from its core lending operations relative to funding costs.
Risks and Market Sentiment: A Balanced View
Despite the strong numbers, some risk factors are emerging from the detailed results. For instance, gross non-performing assets (GNPA) increased during Q3, indicating a rise in loans that may be under stress. The GNPA ratio climbed to around 3.75%, and net NPAs also showed an uptick, which could pose future challenges if not managed carefully.
Investors also keep an eye on broader market trends and valuation concerns, as PSU lenders often trade with volatility tied to interest rates, sector sentiment, and funding costs.
Overall, while the quarterly results were strong, some analysts urge caution due to asset quality dynamics and the broader macro picture that could influence future earnings.
Analyst Commentary
Brokers and market observers have noted that IREDA’s Q3 performance demonstrates consistent operational execution and healthy growth in core financial metrics. Several analysts highlight that the lending demand for renewable projects remains strong as more firms and utilities invest in solar, wind, and other clean technologies.
However, some also point out that valuation levels and market conditions should be monitored, especially as financing costs and macro factors continue to shape performance across the sector.
IDREA Shares Technical & Trading Perspective
On the market front, IREDA’s share price reaction to Q3 results was positive, but the stock still trades below its 52-week peaks, reflecting broader volatility in PSU and financial stocks. Active traders look at support and resistance levels, trading volume, and momentum indicators to assess short-term direction. Although not a pure measure of fundamental strength, these technical factors influence how investors position around earnings news and sector movements.
Conclusion & Outlook
In sum, IREDA’s Q3 FY26 earnings report showed solid growth in both revenue and profit, driven by expanding lending in the renewable energy sector and healthy operational execution. The rise in share price on January 12, 2026, highlights market confidence in these trends.
Looking ahead, continued expansion of the loan book and supportive policy tailwinds in India’s green energy transition could shape future growth. Yet, monitoring asset quality and macroeconomic risks will be important for investors tracking IREDA’s long-term trajectory.
Frequently Asked Questions (FAQs)
IREDA shares rose 4% on January 12, 2026, because the company reported strong Q3 results. Profit grew 15% and revenue rose 28%, boosting investor confidence in the stock.
In Q3 FY26, IREDA reported a profit of ₹1,381 crore, up 15% year-on-year. Revenue grew 28% to ₹6,041 crore, showing strong growth in its renewable energy lending business.
Analysts say IREDA’s growth looks promising. Loan disbursements and renewable energy demand are rising, but they also warn investors to watch asset quality and market risks closely.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
