The market loves IREDA right now. Shares of the renewable energy financier shot up by 12% in just two days after the company dropped its year-end numbers. Yesterday (April 16th), the stock opened with a solid 5% gap-up as investors piled in on the good news.
The Numbers Behind IREDA's Share Price Rally
The company managed to squeeze better returns from its loan book—pushing its yield to 10.03% while actually reducing what it pays on borrowed money to 7.61%. That's widened its interest spread to 2.42%, up from 2.16% last year. Anyone in banking knows that's where the money's made.
Record-Breaking Quarterly Performance
Their quarterly performance tells the real story. Revenue hit ₹1,904 crore, jumping 12% from last quarter and nearly 37% from last year. Operating profit looks even better at ₹770 crore, up 18% quarter-on-quarter. Bottom line? They're making serious money with a profit after tax of ₹502 crore – which is 49% higher than last year's Q4.
Efficiency Metrics That Matter
What’s eye catching is - their productivity numbers. Revenue per employee is now ₹40.37 crore, up from ₹28.53 crore.
Asset Quality: The One Thing to Watch
The only minor wrinkle is their NPA ratio, which increased slightly to 2.45% from 2.36% year-on-year. But even that's improving compared to the last quarter when it was 2.68%. They're getting their loan book in order.
Growth Strategy Paying Off
IREDA's leveraged up a bit more, with its debt-equity ratio now at 6.31, but that's honestly expected for a growing lender focused on the renewable sector. With EPS climbing to ₹6.32, it's delivering where it counts.
Outlook: Why IREDA Share Price Could Continue Rising
For anyone watching renewable energy stocks, IREDA is turning into one of the standout performers. With India pushing hard into green energy, they're in the right place at the right time—and the share price is starting to reflect that reality.
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