IREDA Q1 Results: Loan Book Expands, Asset Quality in Focus Amid Gensol Exposure

Market Performance

Shares of IREDA traded higher on July 10, ahead of the company's Q1 FY25 results announcement.

• Stock Price Movement: The stock gained 1.7%, trading at ₹168.7.
• 52-Week Trend: The current stock price is still 45% below its all-time high of ₹310.

Main News

IREDA has released a business update for the April–June 2025 quarter, highlighting strong growth in loan activity.

Key updates from the company include:

• Loan Sanctions: ₹11,740 Crore sanctioned in Q1, up 28.5% YoY.
• Loan Disbursements: ₹6,981 Crore disbursed, marking a 31.1% increase YoY.
• Loan Book Size: Now nearing ₹80,000 Crore, growing 26.5% YoY from ₹63,207 Crore.

The quarterly report will further elaborate on the growth in Assets Under Management and the loan mix. However, what continues to attract significant attention is the asset quality, especially given recent developments.

Company Details

IREDA's financial stability is being closely observed due to its loan exposure to Gensol Engineering, which is currently under insolvency proceedings.

Key financial exposure details:

• Total Exposure: ₹470 Crore
  • Term Loan: ₹254.9 Crore
  • Working Capital Facilities: ₹215.7 Crore

The National Company Law Tribunal (NCLT) has approved IREDA's insolvency petition against Gensol Engineering.

In the previous quarter (Q4 FY24):

• Gross NPA: Improved to 2.45%, down from 2.68% in Q3
• Net NPA: Improved to 1.35%, down from 1.5%

The focus in this quarter remains on whether IREDA can maintain or further improve these metrics amid the Gensol case.

Financial Snapshot

While the official Q1 FY25 results are awaited, here's a quick recap of operational performance as disclosed:

Loans & Sanctions

• ₹11,740 Crore loans sanctioned (+28.5% YoY)
• ₹6,981 Crore loans disbursed (+31.1% YoY)

Loan Book

• Total Loan Book: ₹80,000 Crore
• Previous Year Same Quarter: ₹63,207 Crore
• YoY Growth: +26.5%

Asset Quality

• Exposure to Gensol Engineering: ₹470 Crore
• Gross NPA (Q4 FY24): 2.45%
• Net NPA (Q4 FY24): 1.35%

Summary of the Article

IREDA continues to exhibit robust operational growth, marked by a significant increase in both loan sanctions and disbursements for the first quarter of FY25—the loan book expansion to ₹80,000 Crore highlights strong sectoral momentum.

However, the spotlight remains on the company's asset quality, mainly due to the ₹470 Crore exposure to the now-insolvent Gensol Engineering. As the Q1 financial results are expected soon, all eyes are on how IREDA addresses this critical issue in its balance sheet.

The market has responded moderately, with IREDA shares trading slightly higher ahead of the full results disclosure.