As investors awaited the results of the company’s next board meeting, shares of the Indian Renewable Energy Development Agency (IREDA) increased by about 2% during intraday trading on Monday, March 17. A proposal to improve the board’s borrowing plan for the fiscal year 2024–2025 is scheduled for discussion. “This is to inform you that the meeting of the Board of Directors of Indian Renewable Energy Development Agency Limited (IREDA) is scheduled to be held on Monday, March 17, 2025, inter-alia, to consider the proposal for enhancement of borrowing plan for FY 2024-25,” according to the regulatory filing.
IREDA recently revealed that their application for an equity investment in the 900 MW Upper Karnali Hydro Electric Power Project in Nepal was denied by the Reserve Bank of India (RBI). Established earlier this year, the project is a joint venture between the Nepal Electricity Authority, GMR Energy, GMR Power & Urban Infra, GMR Lion Energy, IREDA, and state-run SJVN Ltd. The project is still an important component of IREDA’s long-term renewable energy aspirations in spite of this regulatory setback.
Performance of Stock Prices
The PSU shares gained 1.7 percent, reaching an intraday high of ₹142.35. It has, however, fallen 54 percent from its 52-week top of ₹310 in July 2024, and is still much below that level. IREDA shares have increased 8.6 percent in the last year. The stock has, however, been under selling pressure in the short term, down 10% so far in March after falling 23% in February and 6% in January.
Technical Outlook:
“IREDA’s share price has confirmed additional declines by strongly breaking below the pivotal weekly swing low of ₹154. The next major support level, at ₹121, is still a high-probability target for IREDA shares. Interestingly, there hasn’t been much volume in the selloff, which suggests that there hasn’t been any large institutional selling. This suggests that for long-term investors, ₹121 would be a good area to accumulate.
Excellent Financial Results
IREDA has reported impressive financial success in spite of stock price swings. For the December quarter (Q3FY25), the company’s net profit increased by 27% to ₹425.38 crore from ₹335.53 crore during the same time the previous year. The total revenue from operations increased from ₹1,252.85 crore in Q3FY24 to ₹1,698.45 crore, a 35.6 percent year-over-year increase. Net profit increased by 10% sequentially from the ₹387.75 crore recorded in Q2FY25. Revenue, on the other hand, increased 4.2% from quarter to quarter from ₹1,629.56 crore in the July-September quarter. Investors are still paying attention to IREDA because of its consistent earnings growth and impending important borrowing decision. However, the future course of the stock will probably be greatly influenced by more general market trends and regulatory changes.