Indian Renewable Energy Development Agency Limited

Financial Services — Credit Services · NSE

₹108.80+₹0.54 (+0.50%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Indian Renewable Energy Development Agency Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indian Renewable Energy Development Agency Limited, a non-banking financial company, provides financial products and services in the renewable energy and energy efficiency sectors in India.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹8,126 Cr

How does it make money?

Turns over ₹8,126 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹70 left at the operating level before interest, tax and depreciation.

EBITDA margin69.8%

Net margin23.1%

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE5.3%

ROE13.6%

Peer median ROE16.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 19.4% and earnings to grow about 20.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.4%

Est. earnings growth+20.1%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +143% while net margin moved -11% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+143%

Margin effect-11%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.05 — historically steadier than the index
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

76/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.5x

3Y Median

30.2x

37 monthly readings · mean 32.8x · range 16.2x–81.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 49% below its 3y median of 30.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Cheap

30.2x median over 37 months · -49%

vs. sector peers

Fair

17.0x median of 4 peers · -9%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.5x

P/B

2.22x

EV/EBITDA

19.1x

PEG

0.53

Dividend Yield

1.38%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 62.6% to 69.8% over 3 years.
Valuation below its historical average
At 15.5x the stock trades 49% below its own median of 30.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 62.6% to 69.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 49% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 26% a year✓ 34.5% CAGR
Latest reported year was 23.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 68%✓ 69.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 12%✓ 13.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 30.2x✓ 15.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹30,564 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

15.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.22x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.03

Profitable

Profitable on a per-share basis

ROE

13.6%

Moderate

Moderate capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

5.66x

High

High leverage

Revenue Growth (YoY)

23.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

33.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.38%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹14,492 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹108.8

P/E (Forward)

11.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

85.4%

Good

Healthy core-business profitability

Net Margin

69.3%

Good

Strong bottom-line conversion

Current Ratio

72.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.05

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

109.5 / 112.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,343 Cr	₹4,838 Cr	₹6,618 Cr	₹8,126 Cr	+34.5%
EBITDA	₹2,091 Cr	₹2,732 Cr	₹4,246 Cr	₹5,674 Cr	+39.5%
EBITDA Margin	62.6%	56.5%	64.2%	69.8%	—
PAT (Net Profit)	₹865 Cr	₹1,252 Cr	₹1,698 Cr	₹1,874 Cr	+29.4%
EPS	₹3.22	₹5.16	₹6.32	₹6.73	+27.9%
ROE	14.6%	14.6%	16.5%	13.6%	—
ROCE	5.0%	5.3%	5.3%	5.3%	—
Total Debt	₹40,165 Cr	₹49,687 Cr	₹64,758 Cr	₹77,863 Cr	+24.7%
Free Cash Flow	-₹12,360 Cr	-₹11,123 Cr	-₹14,487 Cr	-₹14,492 Cr	—

🟢 Revenue has grown at 34.5% a year over 3 years.

🟢 EBITDA has grown at 39.5% a year over 3 years.

🟢 EBITDA Margin has risen from 62.6% to 69.8% over 3 years (+7.3 pts).

🟢 PAT (Net Profit) has grown at 29.4% a year over 3 years.

🟢 EPS has grown at 27.9% a year over 3 years.

🟡 ROE has held roughly flat at 13.6% over 3 years.

🟡 ROCE has held roughly flat at 5.3% over 3 years.

🔴 Total Debt has grown at 24.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹93,808 Cr

Total Liabilities

₹80,022 Cr

Total Debt

₹77,863 Cr

Cash & Equivalents

₹48 Cr

Operating Cash Flow

-₹14,477 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

71.8%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹145

+33.3% vs CMP

Target Range

₹140 – ₹150

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

5 mixed1 general

Indian Renewable Energy Development Agency Share Price Rise

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

IREDA vs Inox Wind: Renewable Energy Stocks Down 7%, Buy The Dip Or Stay Away?

Goodreturns, 17 Oct

IREDA share price falls from Rs.310 to Rs.111 | Govt decision on top management; what exchange filing said

TradingView, 02 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

IREDA share price falls from ₹310 to ₹111 | Govt decision on top management; what exchange filing said

Livemint, 02 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

IREDA Shares Fall 2% Despite Strong Q1 Profit Growth

HDFC Sky, 04 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Indian Renewable Energy Development Agency shares gain 2.12% in today's session

Moneycontrol.com, 03 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟡GrowthModest12.9/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive10.7/15

🟡RiskModerate5.8/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 26% a year34.5% CAGR
✓EBITDA margin holds above 68%69.8%
✓Return on equity stays above 12%13.6%
✗Interest cover stays above 3x1.9x
✓Valuation vs its own median of 30.2x15.5x today