IREDA shares rise over 2% ahead of Q1 results; Gensol exposure puts spotlight on asset quality

IREDA shares are down 22 percent since the beginning of the year.

Shares of Indian Renewable Energy Development Agency (IREDA) rose over 2 percent to Rs 170 on July 10 ahead of its June quarter earnings announcement due later in the day. The state-run lender had earlier shared a business update, offering a glimpse into its operational performance for the first quarter of FY26.

Loan sanctions during the April–June period rose 28.5 percent year-on-year to Rs 11,740 crore, while disbursements grew 31.1 percent to Rs 6,981 crore, signalling continued momentum in the renewable energy financing space.

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The company’s loan book expanded to nearly Rs 80,000 crore, up 26.5 percent from the Rs 63,207 crore recorded in the same quarter last year.

As IREDA prepares to release its full financials, key metrics to watch include growth in assets under management (AUM), loan mix, and most notably, asset quality—a metric that has attracted scrutiny due to its exposure to Gensol Engineering, a firm now undergoing insolvency proceedings.

IREDA has a total exposure of Rs 470 crore to Gensol, comprising a term loan of Rs 254.9 crore and working capital facilities worth Rs 215.7 crore. The National Company Law Tribunal (NCLT) has admitted IREDA’s insolvency plea against the borrower.

At about 11:10 am, shares of the company were trading at Rs 168.5, higher by 1.6 percent from the last close on the NSE. IREDA shares are down 22 percent since the beginning of the year.

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