IREDA raises ₹453 crore through perpetual bond issuance; stock gains 3.5% in 6 months

The issue drew strong investor interest, with total bids worth ₹1,343 crore against the base size of ₹100 crore and a Green-Shoe option of ₹400 crore. State-owned Indian Renewable Energy Development Agency (IREDA) on Thursday said it has raised ₹453 crore through issuance of perpetual bonds. The issue drew strong investor interest, with total bids worth ₹1,343 crore against the base size of ₹100 crore and a Green-Shoe option of ₹400 crore, a company statement said. This resulted in oversubscription by 2.69 times, reflecting growing confidence in IREDA’s role as a leading financier of India’s renewable energy sector, it said further. According to the statement, IREDA has raised ₹453 crore at 7.70% per annum through its second issue of Perpetual Bonds, marking a significant step in strengthening its capital base for financing green energy projects. IREDA Chairman and Managing Director Pradip Kumar Das said, "These bonds will strengthen our Tier-I Capital and help scale up renewable energy financing, accelerating India’s transition to a greener and more sustainable future.” Last month, IREDA had signed a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), setting a revenue from operations target of ₹8,200 crore for the financial year 2025-26. The MoU was signed by MNRE Secretary Santosh Kumar Sarangi and IREDA Chairman and Managing Director Pradip Kumar Das at Atal Akshay Urja Bhawan in New Delhi in the presence of senior officials from both organisations. As part of the agreement, performance indicators such as return on net worth, return on capital employed, non-performing assets (NPA) to total loans, asset turnover ratio and earnings before tax, depreciation and amortisation (EBTDA) have also been included. For FY25, IREDA had exceeded its revenue from operations target, clocking ₹6,743.32 crore against the set target of ₹5,957 crore. On Thursday, shares of IREDA settled 0.39% lower at ₹146.99 apiece on the National Stock Exchange (NSE). The stock rose 0.60% to touch an intraday high of ₹148.46. The company’s market capitalisation stands at ₹41,292.89 crore. Over the past five days, IREDA shares surged nearly 1.23%. The stock has gained 1.47% over the last one month and climbed approximately 3.53% over the past six months. Shares of the firm had touched its 52-week high of ₹240 on September 11, 2024 and touched its 52 week low of ₹137.01 on March 17, 2025. IREDA Q1 earnings IREDA had reported a 36% decline in its consolidated net profit for the April-June quarter of the financial year 2025-26 at ₹247 crore. The company had reported a net profit of ₹383.7 crore in the corresponding quarter last fiscal year. The Maharatna PSUs total revenue from operations, however, saw a 29% growth in Q1 FY26 at ₹1,947.6 crore in contrast to ₹1,510.27 crore in the same quarter the previous year. IREDA’s net interest income (NII) increased 36.02% during the reporting quarter to ₹691 crore as against ₹508 crore in Q1 FY25. The company’s loan book rose 26% to ₹79,941 crore year-on-year (YoY) as compared to ₹63,207 crore in the same quarter last year. Sequentially, the renewable energy’s gross non-performing assets (NPA) stood at 4.13% as against 2.45%. The net NPA for Q1FY26 was at 2.06% versus 1.35% quarter-on-quarter (QoQ). (With PTI inputs)