IREDA Share Price Target Today From 2025 to 2030: A Detailed Analysis
The Indian Renewable Energy Development Agency Ltd (IREDA), a pioneer in financing renewable energy projects, has been a key player in India’s transition towards green energy. Established as a government-owned enterprise under the Ministry of New and Renewable Energy (MNRE), IREDA’s role in developing renewable energy infrastructure has earned it a reputation as the largest green financing Non-Banking Financial Company (NBFC) in the country.
The company’s performance, strategic initiatives, and future prospects are crucial factors influencing its stock price trajectory. In this blog, we will explore IREDA’s financial performance, its growth strategy, and a future share price prediction for the years 2025 to 2030.
IREDA: An Overview
IREDA stands as a cornerstone of India’s renewable energy ambitions. With a diversified portfolio spanning across solar, wind, hydro, biomass, ethanol, and green mobility projects, the company has demonstrated its commitment to sustainable growth. As of H1FY25, IREDA boasts a loan book of ₹64,564 crores and a geographical presence across 23 states and 4 union territories. The recent Initial Public Offering (IPO) in November 2023, which raised ₹2,150.21 crores, marked a significant milestone in its journey.
Key Takeaways
Key Drivers of IREDA’s Share Price
- Strong Financial Performance
Revenue Growth: Revenue surged by 43% in FY24, driven largely by interest income (97% of total revenue).
Profit Growth: The company has delivered an impressive compounded annual growth rate (CAGR) of 33.9% in profit over the last five years.
Asset Quality: With a Gross Non-Performing Asset (GNPA) ratio improving from 2.36% in FY24 to 2.19% in H1FY25, IREDA is ensuring sustainable growth.
- Strategic Initiatives
Expansion into Emerging Sectors: Incorporating IREDA Global Green Energy Finance IFSC Ltd. as a subsidiary shows its intent to capture emerging renewable energy markets like electric vehicles (EVs) and energy storage.
Geographic Diversification: The company’s projects span states like Andhra Pradesh, Rajasthan, and Karnataka, among others, ensuring balanced regional growth.
- Market Leadership
IREDA’s status as the largest pure-play green financing NBFC in India strengthens its market position.
With 75% ownership by the Government of India, the company enjoys significant credibility and financial backing.
- Favorable Macro Environment
The global push for renewable energy investments aligns perfectly with Company’s business model.
Government initiatives like PM-KUSUM and tax incentives for renewable energy adoption are likely to fuel further growth.
IREDA’s Challenges
While the company is on a growth trajectory, certain risks and challenges persist:
Stock Valuation: Trading at 5.91 times its book value, Company’s stock appears overvalued compared to its peers.
Interest Coverage: The low interest coverage ratio suggests the company may be facing pressure from interest obligations.
Dividend Payout: Despite consistent profitability, company has not paid dividends, which might discourage dividend-seeking investors.
IREDA Share Price Forecast (2025-2030)
- 2025: Sustained Growth Amid Favorable Policies
By 2025, company is expected to benefit from its diversified loan book and rising investments in renewable energy. The company’s plans to raise ₹24,200 crores for FY25 through bonds and loans should further augment its capacity to fund large-scale projects.
Predicted Price Target for 2025: ₹200-₹230 per share
- 2026: Expansion into New Markets
With the subsidiary IREDA Global Green Energy Finance IFSC Ltd. focusing on retail and emerging renewable energy sectors, company could tap into high-growth opportunities in EVs and green technology. This expansion, coupled with improving financial ratios like Net Interest Margin (NIM), will bolster investor confidence.
Predicted Price Target for 2026: ₹280-₹300 per share
- 2027: Consolidation and Leadership
By 2027, Company’s geographic and sectoral diversification will translate into steady revenue streams. The company’s GNPA and NNPA levels are expected to decline further, improving its overall financial health.
Predicted Price Target for 2027: ₹350-₹380 per share
- 2028: Rising Renewable Energy Demand
As renewable energy becomes mainstream, Company is poised to capitalize on this trend. Its continued investment in solar, wind, and green mobility projects will ensure long-term growth. The push for green bonds globally could also reduce borrowing costs.
Predicted Price Target for 2028: ₹420-₹450 per share
- 2029: Technological Innovation and Market Expansion
Company’s investment in innovative green technologies and sustainability projects, coupled with international partnerships, could drive exponential growth. The company’s financial metrics, including Return on Equity (RoE), are expected to improve significantly.
Predicted Price Target for 2029: ₹500-₹550 per share
- 2030: A Renewable Energy Powerhouse
By 2030, Company is likely to solidify its position as a renewable energy financing leader. The global emphasis on achieving net-zero emissions will further boost its market valuation.
Predicted Price Target for 2030: ₹600-₹650 per share
5-Year Stock Price Prediction for IREDA
| Years | Low Target (₹) | High Target (₹) |
| 2025 | 200 | 230 |
| 2026 | 280 | 300 |
| 2027 | 350 | 380 |
| 2028 | 420 | 450 |
| 2029 | 500 | 550 |
| 2030 | 600 | 650 |
Reasons to Be Optimistic About IREDA’s Future
Government Backing: The ‘Navaratna’ status and ownership by the Government of India add credibility and stability.
Green Financing Leadership: As a pure-play green NBFC, company is uniquely positioned to benefit from the green energy revolution.
Strong Growth Metrics: With revenue growing at 43% in FY24 and profit growing at 34% CAGR over five years, Company’s fundamentals are solid.
Improved Borrowing Profile: The reduction in foreign borrowings from 19% in FY24 to 16% in H1FY25 lowers forex risks.
Potential Risks to Consider
- Economic Downturns: A slowdown in global or domestic economies could affect project funding and loan repayments.
- Competition: Increasing competition from other NBFCs and banks entering the green financing space could pressure margins.
- Policy Dependence: Company’s growth is heavily dependent on favorable government policies and incentives.
Final Decisions
IREDA is at the forefront of India’s green energy transformation. Its robust financial performance, strategic initiatives, and market leadership make it an attractive investment for long-term investors. However, challenges like stock valuation and dividend payout policies must be considered.
The company’s focus on sustainable and diversified growth positions it well for the future. If you are an investor looking to bet on India’s renewable energy story, IREDA could be a compelling choice. With a predicted share price range of ₹600-₹650 by 2030, the potential for significant returns is undeniable.
Investing in this company is not just about financial growth; it is a step towards a greener and more sustainable future.
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Disclaimer: The above analysis is for informational purposes only and should not be considered financial advice. Investors are advised to perform their due diligence or consult financial advisors before making investment decisions.
