look news india
News India Live, Digital Desk: Share Price: Indian Renewable Energy Development Agency (IREDA), a major Indian public sector company, has recently released its financial results for the first quarter of FY 2026, which has recently recorded a significant decline in profit. The net profit of the company has fallen by ₹ 295 crore to ₹ 295 crore as compared to ₹ 370 crore in the same period last year. However, despite this decline, there has been a slight increase in the company’s net interest income (NII), which has increased by 2.7% to ₹ 422 crore, compared to ₹ 411 crore last year. Analysts believe that this decrease in profits is mainly due to high tax expenditure. After this news, Ireda’s stock price was initially a decline of around 7.85%, but later it saw some improvement and was trading at about ₹ 175. Currently, the company’s market capitalization is around ₹ 47,000 crore. Despite this profit fall, brokerage firm Motilal Oswal has retained its ‘buy’ (BUY) rating on Ireda’s stock and set a target price of ₹ 275. The firm believes that Ireda is a prominent player in the renewable energy financing and is getting the benefit of strong growth and government support. According to Motilal Oswal’s report, IREDA’s asset under management (AUM) is expected to grow from 33%, 31% and 30% annual growth rate (Cagr) in FY 2025, 2026 and 2027 respectively. Similarly, the company’s net profit is also estimated to increase the compound annual growth rate of 22%, 28% and 29% in these financial years. However, the firm has also admitted that Ireda’s stock is currently looking more expensive than its historic average (4.6 times the value-to-book ratio of FY 2026), but it is justified given its strong growth possibilities. Investors have also been advised to pay attention to risks such as interest rate sensitivity and asset quality.