IREDA share price edge higher ahead of the board meeting. Here’s why | Stock Market News

Shares of Indian Renewable Energy Development Agency (IREDA) climbed nearly 2 percent in intra-day trading on Monday, March 17, as investors anticipated the outcome of the company’s upcoming board meeting. The board is set to discuss a proposal for the enhancement of its borrowing plan for the financial year 2024-25.

“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,” it said in the regulatory filing.

Recently, IREDA disclosed that the Reserve Bank of India (RBI) did not approve its request to make an equity investment in the 900 MW Upper Karnali Hydro Electric Power Project in Nepal. The project, which is a joint venture between IREDA, GMR Energy, GMR Power & Urban Infra, GMR Lion Energy, Nepal Electricity Authority, and state-run SJVN Ltd, was established earlier this year. Despite this regulatory setback, the project remains a key part of IREDA’s long-term renewable energy initiatives.

Stock Price Performance

The PSU stock touched an intra-day high of ₹142.35, marking a 1.7 percent gain. However, it remains significantly below its 52-week peak of ₹310, recorded in July 2024, reflecting a 54 percent decline from those levels. On the other hand, the stock has rebounded by approximately 18 percent from its 52-week low of ₹121.00, which was hit in March 2024.

Over the past year, IREDA shares have gained 8.6 percent. However, in the near term, the stock has faced selling pressure, slipping 10 percent so far in March, following a 23 percent decline in February and a 6 percent drop in January.

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“IREDA’s share price has decisively broken below the crucial weekly swing low of ₹154, confirming further downside. IREDA shares are now headed toward the next key support at ₹121, which remains a high-probability target. Notably, the selloff has lacked significant volume, suggesting an absence of major institutional selling. This indicates that ₹121 could serve as a strong accumulation zone for long-term investors. Watch for signs of stabilization and potential reversal opportunities as the stock approaches this level,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

Strong Financial Performance in Q3FY25

Despite stock price fluctuations, IREDA has posted strong financial results. The company reported a 27 percent increase in net profit for the December quarter (Q3FY25), reaching ₹425.38 crore, compared to ₹335.53 crore in the same period last year.

Total revenue from operations grew 35.6 percent year-on-year to ₹1,698.45 crore, up from ₹1,252.85 crore in Q3FY24. Sequentially, net profit rose 10 percent from ₹387.75 crore reported in Q2FY25. Meanwhile, revenue saw a quarter-on-quarter increase of 4.2 percent, compared to ₹1,629.56 crore in the July-September quarter.

With a key borrowing decision on the horizon and steady earnings growth, IREDA remains in focus among investors. However, broader market trends and regulatory developments will likely play a crucial role in shaping the stock’s future trajectory.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.