Investment Thesis:
• Mandated Growth: IREDA is the primary dedicated financier for India’s 500 GW non-fossil fuel target by 2030, ensuring a sustained high-growth trajectory for its loan book.
• Accelerating Business Momentum: Q2 FY26 saw loan sanctions surge 145% YoY, translating national RE ambitions directly into exceptional business execution.
• Superior Asset Quality Trajectory: Despite high growth, asset quality has seen sequential improvement with GNPA dropping to 3.97% (Q2 FY26) from a prior high.
• Structural Cost Advantage: As a government PSU under MNRE, IREDA benefits from sovereign backing, which provides access to cheaper domestic and multilateral funding sources, ensuring competitive Net Interest Margins (NIMs).
• Emerging Market Leadership: The company holds a first-mover advantage in financing new-age green technologies like Green Hydrogen, Battery Energy Storage Systems (BESS), and e-mobility infrastructure.
Buy Call on IREDA_16 Oct 2025
BUY : IREDA-EQ( IREDA ) [20261]
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