Introduction

India’s renewable energy sector is booming, and at its heart is the Indian Renewable Energy Development Agency (IREDA), a government-backed financier of clean energy projects. As the nation aims for 500 GW of renewable energy capacity by 2030, IREDA’s role is critical. This article explores the IREDA share price target 2025, 2030, 2040, and  2050, offering a detailed analysis for investors. We’ll cover IREDA’s financial performance, the renewable energy landscape, technical and fundamental insights, and key market trends. With projections based on expert analyses, this guide aims to provide a clear picture of IREDA’s potential.

Overview of IREDA

IREDA, established in 1987, is a Mini Ratna (Category – I) Government of India Enterprise under the Ministry of New and Renewable Energy (MNRE). As a Non-Banking Financial Company (NBFC), IREDA provides loans and financial services for renewable energy projects, including solar, wind, hydro, and energy efficiency initiatives. Its mission is to promote sustainable energy investments, aligning with India’s clean energy goals.

With a market capitalization of approximately ₹47,216 crore as of April 2025, IREDA has delivered multibagger returns of over 290% since its IPO in November 2023 at ₹32 per share (Moneycontrol). Its “Navratna” status, granted in 2024, enhances its operational autonomy, positioning it for growth.

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Renewable Energy Landscape in India

India is a global leader in renewable energy, ranking third in installed capacity with 198.75 GW as of November 2024, or 45% of total energy capacity (Invest India). The government’s target of 500 GW by 2030 drives massive investments in solar, wind, and hydro projects.

The BP Energy Outlook 2024 projects India’s primary energy growing by 90% in a Current Trajectory scenario or 21% in a Net Zero scenario by 2050 (BP Energy Outlook). Solar power is expected to match coal’s share in electricity generation within two decades, per the International Energy Agency (IEA India Outlook). Policies like the National Solar Mission and incentives for renewable projects create a favorable environment for IREDA’s financing activities.

IREDA’s Financial Performance

IREDA’s financials reflect its growing importance. For Q2 2024 (ended September 30), the company reported:

• Net Profit: ₹387.74 crore, up 36% year-over-year.

• Total Income: ₹1,630 crore, a 38.5% increase.

• Net Interest Income: ₹546.9 crore, up 52% (Live Mint).

Loan sanctions surged 303% to ₹17,860 crore in H1 2024-25, compared to ₹4,437 crore the previous year. Gross Non-Performing Assets (NPAs) remained stable at 2.19%, indicating strong asset quality. IREDA’s revenue for FY 2024-25 reached ₹6,742 crore, with profits at ₹1,699 crore (Screener). These metrics underscore IREDA’s robust growth and operational efficiency.

IREDA Share Price Targets for 2025, 2030, 2040, and 2050

Analyst projections for IREDA’s share price vary due to differing assumptions about renewable energy growth, policy stability, and economic conditions. Below are the estimated targets based on multiple sources:

IREDA Share Price Target 2025

The IREDA share price target 2025 is projected to range from ₹300 to ₹500. Key sources include:

• Equitytime.in and Trademint.in: ₹485 (Equitytime).

• Dateupdatego.com: ₹550 (Dateupdatego).

• Figw.in: ₹192.74–₹252.10 (Figw).

This range reflects IREDA’s strong financials and India’s renewable energy momentum. The higher end assumes continued loan growth and policy support.

IREDA Share Price Target 2030

For IREDA share price target 2030, estimates range from ₹1,000 to ₹1,200. Sources include:

• Equitytime.in and Trademint.in: ₹1,110.

• Dateupdatego.com: Extrapolated to ~₹1,200 based on 2029 estimates of ₹1,050.

These projections align with India’s 500 GW target by 2030, which will likely boost IREDA’s loan portfolio and profitability.

IREDA Share Price Target 2040

The IREDA share price target 2040 is estimated at ₹2,500–₹3,000. Sources include:

• Equitytime.in and Trademint.in: ₹2,785.

• Financeinsightful.com: ₹1,000–₹1,050 (Financeinsightful).

• Dateupdatego.com: ~₹2,500–₹3,000 based on 2035 (₹2,054) and 2045 (₹3,450) estimates.

The higher estimates assume sustained renewable energy growth and IREDA’s market dominance, while lower figures reflect conservative scenarios.

IREDA Share Price Target 2050

For IREDA share price target 2050, projections range from ₹3,500 to ₹4,500. Sources include:

• Equitytime.in and Trademint.in: ₹4,570.

• Financeinsightful.com: ₹1,500–₹1,600.

• Shareprice-target.com: ₹3,089–₹3,491 (Shareprice-target).

These figures are highly speculative, depending on global clean energy trends and India’s net-zero goals by 2070.

Share Price Prediction Table

Year	Low Target (₹)	High Target (₹)
2025	300	500
2030	1,000	1,200
2040	2,500	3,000
2050	3,500	4,500

Note: These targets are estimates based on analyst projections and should not be considered guaranteed outcomes.

Technical and Fundamental Analysis

Fundamental Analysis

IREDA’s fundamentals are strong, driven by its unique role as India’s leading green financing NBFC. Key strengths include:

• Government Backing: As a Navratna PSU, IREDA enjoys policy support and operational flexibility.

• Financial Health: High ROE, stable NPAs (2.19%), and 38% net income CAGR over five years (Alpha Spread).

• Growth Potential: Loan sanctions grew 303% in H1 2024-25, reflecting demand for renewable financing.

However, risks like policy changes or competition could impact growth. IREDA’s focus on renewables mitigates some market risks, but macroeconomic factors like interest rates remain a concern.

Technical Analysis

Long-term technical analysis is less precise, but sector trends provide context. The renewable energy sector’s 8.2% CAGR in India supports IREDA’s stock (Hartek). Since its IPO, IREDA’s stock has risen over 290%, reflecting strong investor confidence. As of April 2025, it trades at ₹173.25, with a 12-month median target of ₹215 (Economic Times). Short-term bearish signals (e.g., trading below 200-day moving average) are outweighed by long-term sector optimism.

Market and Sector Statistics

India’s renewable energy sector is projected to grow at a CAGR of 8.2% through 2050, driven by:

• Capacity Growth: From 198.75 GW in 2024 to 500 GW by 2030.

• Solar Dominance: Solar power is India’s fastest-growing energy source, supported by abundant sunshine (IBEF).

• Global Trends: Global renewable capacity is expected to triple by 2030 (IEA Commentary).

India’s GDP is projected to grow at over 5% annually until 2050, increasing energy demand and renewable investments (EIA Analysis). IREDA’s role as a financier positions it to capitalize on these trends.

Potential Risks

While IREDA’s outlook is positive, investors should consider:

• Policy Risks: Changes in subsidies or regulations could impact renewable projects.

• Competition: New financiers may enter the green energy space.

• Economic Factors: Interest rate hikes or global slowdowns could affect loan demand.

• Technological Disruptions: Advances in energy storage or alternative technologies may shift market dynamics.

IREDA’s government backing and sector focus mitigate some risks, but thorough research is essential.

Frequently Asked Questions (FAQs)

1. What is IREDA’s role in India’s renewable energy sector?

IREDA finances renewable energy projects, supporting India’s 500 GW target by 2030. It provides loans for solar, wind, and hydro initiatives, driving clean energy growth.

2. How does IREDA’s share price compare to other financial institutions?

IREDA’s 290% return since its 2023 IPO outperforms many NBFCs, driven by its renewable energy focus and government support (Business Today).

3. What factors could influence IREDA’s share price in the long term?

Government policies, renewable energy demand, global clean energy trends, and IREDA’s financial performance are key drivers. Risks include policy shifts and economic volatility.

4. Is IREDA a good investment for long-term growth?

IREDA’s alignment with India’s renewable goals makes it a strong candidate for growth. The IREDA share price target 2025 and beyond suggests significant upside, but risks must be weighed.

5. What are the risks associated with investing in IREDA?

Policy changes, competition, and economic factors pose risks. However, IREDA’s stable financials and sector focus reduce some uncertainties.

Conclusion

IREDA is a cornerstone of India’s renewable energy transition, with strong financials and a pivotal role in financing clean energy projects. The IREDA share price target 2025 ranges from ₹300 to ₹500, with long-term projections for 2030, 2040, and 2050 reaching up to ₹1,200, ₹3,000, and ₹4,500, respectively. These estimates reflect optimism about India’s renewable energy growth and IREDA’s market position. However, investors should remain cautious of risks like policy changes and market volatility. With thorough research, IREDA offers a compelling opportunity for those betting on India’s clean energy future.