IREDA’s wild stock ride: 632% rally crashes into 38% plunge
Shares of Indian Renewable Energy Development Agency (IREDA) have seen sharp swings in recent months. After a stunning 632% rally over 13 months on the stock market, the stock has dropped 38% from its peak. Analysts now warn of further declines if key support levels fail to hold.
IREDA’s stock price surged from its IPO level of Rs 32, reaching a high that placed it 352% above the issue price. However, the rally lost steam, and the share tumbled 42% in just 50 trading sessions, hitting a 52-week low. The decline has formed a clear downtrend, with the stock consistently making lower highs and lower lows.
The company’s financials remain strong, with Q2FY26 results showing a 42% jump in standalone net profit and a 26% rise in revenue. Since its listing, IREDA has also delivered steady year-on-year and quarter-on-quarter growth in both profit and revenue. Yet, market sentiment has shifted as investors reassess its high valuation multiples, including price-to-book (P/B) and price-to-earnings (P/E) ratios.
External pressures are adding to the challenge. Rising funding costs and persistent high interest rates are squeezing margins. The broader power sector is also struggling with sluggish demand and delays in transmission projects. These factors have contributed to the stock’s recent weakness.
Currently, IREDA’s share price hovers near a critical support level of Rs 140. A breakdown below this mark could trigger further losses. Despite the downturn, Nitin Jain, Senior Research Analyst at Bonanza, advises existing shareholders to hold their positions for now.
IREDA’s stock has retreated sharply after a prolonged rally, weighed down by valuation adjustments and sectoral headwinds. While the company’s financial performance stays robust, the risk of deeper losses remains if support at Rs 140 fails. Investors are watching closely as the market balances growth potential against rising challenges.
