IREDA shares gain on strong Q2 earnings report; multibagger stock zooms 125% YTD

Since its listing in November last year, IREDA stock has risen around 293 percent, nearly quadrupling investors' capital. In comparison, Nifty rose 26 percent during this period.

Shares of the Indian Renewable Energy Development Agency (IREDA) edged higher even amid a weaker market as investors cheered the PSU's fiscal second-quarter earnings. The company's net profit surged 36 percent on-year (YoY) to Rs 387.75 crore on the back of higher revenues.

IREDA is the largest pure-play green financing NBFC in the country. The state-owned firm's total income from operations jumped 38 percent YoY to Rs 1,630.38 crore in the reporting period. The company's NII rose 52 percent YoY to Rs 546.8 crore.

At 9:39 am, IREDA stock was trading over a percent higher at Rs 236.43 on the National Stock Exchange (NSE) in the previous session. The stock has zoomed around 125 percent so far this year, outperforming Nifty's returns of 14 percent.

IREDA's loan book increased by 35.88 percent YoY to Rs 64,564 crore in the July-September quarter.

"Q2 results reflect our unwavering dedication to advancing India's renewable energy goals. The substantial growth in loan sanctions and disbursements underscores the company's commitment to supporting green projects across the nation," CMD Pradip Kumar Das told PTI.

IREDA's asset quality remained stable in comparison to the June quarter. Gross NPA remained unchanged at 2.19 percent, while its Net NPA stood at 1.04 percent. The renewable energy financier's debt-equity ratio stood at 5.85x from 5.83x in the previous quarter.

The company on October 10 informed that it has received approval from DIPAM and the Ministry of New and Renewable Energy to establish a wholly-owned subsidiary for its retail business.

This will include PM KUSUM, rooftop solar, and other consumer-focused segments in renewable energy, such as electric vehicles, energy storage, green technologies, and energy efficiency, the company stated in a filing.

Also Read | Govt set to roll out unified Securities Markets Code; Bill at drafting stage

Since its listing in November last year, IREDA stock has risen around 293 percent, nearly quadrupling investors' capital. In comparison, Nifty rose 26 percent during this period.