IREDA shares dip 6% to ₹159 after Q1 PAT falls 36% YoY to ₹247 cr. Learn what’s behind the drop, key fundamentals, valuation, and whether now is a good entry point.
📉 What’s Moving IREDA Today?
- Q1FY26 Profit Falls: Standalone PAT dropped 36% YoY to ₹247 cr (from ₹384 cr), despite interest income rising 29% to ₹1,909 cr The Economic Times+7Republic World+7mint+7The Economic Times+3Zee Business+3The Economic Times+3Republic World+3HDFC Sky+3The Economic Times+3.
- Market Reaction: Shares slid 6.2%, intraday low ₹159.05 on BSE, as investors re-evaluate margins and cost pressures The Economic Times.
- Pre-Q1 Optimism: A day earlier, stock had jumped ~3% to ₹170.1 on bond tax-exemption news—a short-lived rally The Economic Times.
🔍 Key Insights & Fundamentals
- NAV Ratios: Trades at P/E ~27× and P/B ~4.5×—premium for a PSU-NBFC backed by strong loans book Zee Business+4HDFC Sky+4The Economic Times+4.
- Strong Sanctions Growth: Loans sanctioned +29%; disbursed +31%, ending with ~₹79,900 cr loan-book (+27% YoY) mint+2Business Today+2Republic World+2.
- Asset Quality: Gross/Net NPA rose to ~4.13%/
2.06%, partly from Gensol exposure (₹470 cr)—worth watching The Economic Times+3HDFC Sky+3mint+3. - Technical View: Range-bound in ₹160–170. Analysts expect a breakout only if Q2 margins recover; support at ₹158–165 The Economic Times+5mint+5Business Today+5.
⚠️ Risks & Opportunity
| Risk Factors | Opportunity |
|---|---|
| Profit drop due to cost/impairments | Loan-book expansion supports future profits |
| Slower margins if costs rise | Bond tax-exemption may lower borrowing costs |
| Volatility near recent lows | Discounts create entry point for long-term investors |
✅ Should You Buy IREDA?
- Short-term traders: Watch for support around ₹158–160. A bounce might offer quick trades if margins recover.
- Long-term investors: If you trust loan growth and bond benefits, and can tolerate volatility, this dip (~30% off 52‑week peak) could be a value entry.
❓ FAQs — IREDA Share Price
Q1. Why did IREDA drop 6% today?
The slump follows a sharp 36% YoY fall in Q1 PAT—profitable growth lagged expectations angelone.in+4Republic World+4Business Today+4Republic World+2Business Today+2The Economic Times+2.
Q2. Is the bond tax-exemption helpful?
Yes—that temporary rally (+3%) was triggered by bond interest being tax-free, improving borrowing economics .
Q3. What are the support levels?
Technical analysts suggest ₹158–160 as strong near-term support; resistance sits around ₹175–183 .
Q4. Any asset-quality concern?
Gensol exposure (~₹470 cr) increased GNPA to ~4.1%—still manageable but needs monitoring The Economic Times+3HDFC Sky+3mint+3.
⚠️ Disclaimer
This is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before making investment decisions.
IREDA’s Q1 performance highlights a mixed picture: strong loan growth but profit pressure. The recent plunge offers a possible buying opportunity for patient investors, yet margin trends and asset quality merit attention. Want peer comparisons (like REC, PFC), technical chart analysis, or real-time trade ideas? Just say the word! 😊
