IREDA shares jump over 11% after company logs highest-ever net profit in FY24

IREDA is India’s largest RE financing non-bank financial company (NBFC). An increase in its share price can be attributed to favourable investor perceptions after it managed to concurrently lower its non-performing assets (NPAs), increase profit after tax (PAT), and record an all-time high loan disbursement in FY24, among other things. IREDA’s superior financial performance is also an endorsement of the credit quality of clean energy assets, which bodes well for India’s energy transition.

Will IREDA be able to maintain its present level of NPAs if it continues to grow its loan book as India pursues its 500 GW non-fossil-fuel-based capacity target?