IREDA Share Price: After huge earnings, the share gradually became a big wealth destroyer…
highlights
- IREDA’s share price surged on Monday, January 12, following strong third quarter financial results.
- The company reported a huge 15.4% year-on-year increase in net profit at Rs 1,381.36 crore, while revenue from operations grew 28.2%.
- Should you buy the stock after the quarterly results update?
Around 12 noon, shares of the PSU company were trading in the green at Rs 138.25, up 1.17%. The stock, which earned huge profits for investors after listing, has been continuously trading at a loss for the last few weeks.
IREDA Q3 FY2026 Results: How were the company’s results?
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The company said that the company’s net profit in the third quarter increased by 37.5 percent year-on-year to Rs 584.9 crore, whereas last year it was Rs 425.4 crore. The company reported a 15.4% year-on-year (YoY) growth in its consolidated net profit at Rs 1,381.36 crore. Revenue from operations grew 28.2% year-on-year to Rs 6,041.82 crore during the quarter, compared to Rs 4,714.25 crore in the same period last year.
For the nine-month period ending December 31, 2025, IREDA reported 27% year-on-year growth in revenue from operations at Rs 6,135 crore, compared to Rs 4,838 crore in the same period last financial year. Profit before tax (PBT) for the same period stood at Rs 1,718 crore, up 17% from Rs 1,474 crore last year. If we talk about the figures of 9 months of the current financial year, then profit after tax (PAT) increased by 15% on an annual basis to Rs 1,381 crore, whereas in the same nine-month period last year it was Rs 1,197 crore.
IREDA also saw strong growth in its core lending business. Loan approvals for the nine months increased 29% year-on-year to Rs 40,100 crore, compared to Rs 31,087 crore in the same time period last year. Loan disbursements saw even faster growth, rising 44% to Rs 24,903 crore from Rs 17,236 crore last year. As of December 31, 2025, the company’s total borrowings stood at Rs 73,172 crore. Of this, Rs 63,393 crore (87%) was raised from domestic lenders, while Rs 9,779 crore (13%) was raised from foreign borrowings.
IREDA borrowed a total of Rs 32,397 crore during Q3 FY26 alone, according to its financial disclosures, according to exchange filings. Sector-wise analysis of the company’s loan book shows diverse investments in the clean energy ecosystem.
IREDA: Should you invest in stocks?
Giant is a financing company in the renewable energy sector. At the time of listing, there was tremendous enthusiasm in the market about this stock and it also earned good income for the investors in the initial days. But after this this share gradually became a big wealth destroyer for investors.
Currently the stock is trading below ₹140 and is under continuous pressure for a long time. The stock has fallen by about 30% in the last one year, due to which investors’ disappointment has increased. If we look at the latest results, the figures appear fine at first glance. There has been some improvement in the asset quality of the company and a slight improvement has been seen in gross NPA and net NPA. Profit has increased by about 37% on an annual basis, while revenue has registered a jump of about 26%. That means the results look strong on paper.
Should you invest in the stock at current levels after Q3 results?
On this stock, market expert Gaurang Shah of Geojit Investments says that there is uncertainty regarding new power generation capacity in the renewable energy sector, which may impact the growth of the company’s loan book. However, he also admitted that the latest results were better than expected.
Gaurang Shah said that there has been an increase of about 26% in income and more than 34% increase in net profit, and margins have also been better. Despite this, it is a matter of concern that there has been an increase in both gross and net NPA, which may pose a risk in the future. Going forward, it will be important to see how fast renewable energy projects are approved by the government and how the company’s loan book grows.
While advising the investors, Gaurang Shah said that if you want to remain in the power and energy sector then you have better and stronger options, like Tata Power, NTPC, JSW Energy and Torrent Power. In the transmission sector, names like KE Industries, Siemens and ABB can also be considered among power grid and equipment manufacturing companies.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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