IREDA Declares ₹0.60 Dividend, Stock Slips Despite 37.5% Profit Jump

Indian Renewable Energy Development Agency Ltd (IREDA) shares slipped 2.6% to ₹116.10 at 12:55 PM on Friday after the company announced an interim dividend of ₹0.60 per share for FY26. The dividend equals 6% of the ₹10 face value.

IREDA’s share decline came alongside strong quarterly numbers, with net profit rising 37.5% year-on-year and revenue from operations up 38%.

What Does The Dividend Announcement Mean For Shareholders?

IREDA has set 2 April 2026 as the record date. Investors holding shares in their Demat accounts on that day will qualify for the payout. The company said the dividend will be credited within 30 days.

Dividend income will be taxed in the hands of investors. TDS will be deducted before payment. Those eligible for a lower deduction need to submit documents before the record date.

IREDA has also made it clear that payments will be processed only through electronic transfer. Investors who have not updated their bank details with their depository participants may face delays.

Why Did The Stock Fall Despite Strong Performance?

The drop in the share price comes at a time when the company has been recording steady growth in all its key performance indicators.

Net profit for the December quarter stood at ₹584.9 crore, up from ₹425.4 crore a year ago. Revenue from operations rose 38% to ₹2,140 crore from ₹1,699 crore. Net interest income grew 34.8% to ₹897.5 crore.

The loan book increased to ₹87,975 crore. Disbursements during the quarter were ₹9,860 crore, showing a 32% rise from last year.

Over a longer period, the stock has seen pressure. It is slightly higher over the past five days but down more than 5% in one month and around 22% over six months. The recent fall suggests short-term selling after recent gains.

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What Is Next For IREDA’s Growth Plans?

To fund its expanding loan book, the company has raised its borrowing plan for FY26 to ₹35,800 crore from ₹30,800 crore announced earlier.

The company plans to raise capital through bank loans, bonds, and international credit. For the next financial year (FY27), the borrowing goal is set at ₹40,000 crore amidst a strong financial position with net worth rising to ₹13,537 crore.

Even though the business is growing steadily, the stock price is still struggling, in line with the market. The next few months will reveal if the stock finally starts to catch up with the company’s actual performance.

Sources

The Economic Times

CNBC TV18