IREDA Shares Rally Over 4% as Borrowing Limit Rises, Ending Six-Day Slump

!Indian Renewable Energy Development Agency ( !IREDA ) shares surged more than 4% on March 18, 2025, breaking a six-day losing streak, after the company announced a Rs 5,000 crore increase in its FY25 borrowing limit. The board-approved hike, detailed in an exchange filing post-market on March 17, raises the ceiling from Rs 24,200 crore to Rs 29,200 crore. The additional funds will be raised through diverse instruments, including taxable bonds, perpetual debt, term loans from banks, international credit lines, external commercial borrowings, and short-term bank loans. The stock’s rebound comes after a tough stretch, with IREDA hovering near its 52-week low of Rs 124—down nearly 56% from its peak in July 2024. Despite recent struggles, the company’s Q3FY25 results showed resilience, with net interest income rising 39% year-on-year and net profit growing 27% to Rs 425.4 crore. However, asset quality concerns loomed large, as gross NPAs rose 30.4% and net NPAs spiked 53.75% sequentially to Rs 1,024 crore. The increased borrowing capacity signals IREDA’s intent to fuel growth amid these challenges, lifting investor sentiment on Tuesday.