IREDA Q1 results: Shares extend gain to hit fresh high; stock up 182% in 2024

IREDA shares rallied close to 15% in the previous session to hit an all-time high of ₹289.33 apiece on the NSE. On Friday, the share price jumped 7% to a new peak of ₹ 304.5 apiece in morning trade.

IREDA share price has surged over 24% in the past five trading sessions and is up over 182% year-to-date in 2024.

The recent spike in the IREDA stock price can be attributed to expectations of solid growth in its Q1 earnings based on the company's business update last month.

Here’s what’s aiding the rally in share price ahead of Q1 results

IREDA said in its Q1FY25 business update that its loan sanctions skyrocketed by almost 383% to ₹9,136 crore during the June quarter compared with the year ago period.

Loan disbursements, meanwhile, were recorded at ₹5,320 crore during the quarter, up almost 68% compared with a year ago. IREDA’s outstanding loan book at the end of Q1FY25 stood at ₹63,150 crore, up 34% year-on-year.

The IREDA stock was also in focus after the PSU earned the ‘Navratna’ status amid the government’s increasing focus on the renewable energy sector.

In another positive development, rating agency CARE Ratings had also recently upgraded various instruments of IREDA to ‘AAA (Stable)’ from ‘AA+ (Positive)’. Besides that, IREDA was also in the news in June for raising ₹1,500 crore through the issuance of bonds.

“The successful capital raising will enable us to further strengthen our efforts in financing green energy projects,” the company said in a statement.

In the previous quarter ended March 2024 (Q4FY24), IREDA’s net profit had grown 33% year-on-year to ₹337 crore.

Shares of IREDA were trading 2.2% higher at ₹290 apiece on the NSE at 12:45 pm.