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Shares of state-run Indian Renewable Energy Development Agency (IREDA) rose over 2 per cent to Rs 170 in early trade on Wednesday, ahead of its June quarter results due later in the day. The uptick comes after a strong business update signalled sustained momentum in loan disbursements and sanctions, reinforcing investor optimism in India’s green financing play.

At 11:10 am, the stock was up 1.6 per cent at Rs 168.5 on the NSE. Despite the day’s gain, shares of IREDA remain down 22 per cent so far in 2025.

According to its Q1 business update, IREDA’s loan sanctions jumped 28.5 per cent year-on-year to Rs 11,740 crore for the April–June period, while disbursements climbed 31.1 per cent to Rs 6,981 crore. The company’s total loan book expanded to nearly Rs 80,000 crore, up 26.5 per cent from Rs 63,207 crore a year ago, marking one of its strongest operational quarters yet.

While the topline momentum remains strong, asset quality will be in sharp focus when the company reports its full results. IREDA has a total exposure of Rs 470 crore to Gensol Engineering, which is currently undergoing insolvency proceedings. This includes Rs 254.9 crore in term loans and Rs 215.7 crore in working capital credit.

The National Company Law Tribunal (NCLT) has admitted IREDA’s insolvency plea against the borrower, raising questions around provisioning and the potential impact on the agency’s NPA levels.

Analysts expect clarity on three fronts in the upcoming earnings report: asset quality, growth in assets under management (AUM), and the composition of the loan portfolio. Management commentary on future disbursement trends and any write-downs on stressed accounts will also be closely tracked.

Despite the overhang from Gensol, IREDA remains a key player in India’s renewable energy finance sector, and continued growth could help offset near-term pressures if risks are managed effectively.

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