Indian Renewable Energy Development Agency Limited (IREDA) has signed a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), Government of India, outlining ambitious strategic targets for the fiscal year 2025-26. The agreement was signed on 25th August 2025 at Atal Akshay Urja Bhawan in New Delhi by Shri Santosh Kumar Sarangi, Secretary of MNRE, and Shri Pradip Kumar Das, Chairman and Managing Director of IREDA, in the presence of senior officials from both MNRE and IREDA.
Under this MoU, the Government of India has set a Revenue from Operations target of ₹8,200 crores for IREDA in FY 2025-26. This target comes on the back of IREDA’s strong performance in FY 2024-25, where the company exceeded its assigned target. Against a revenue target of ₹5,957 crores, IREDA achieved ₹6,743.32 crores, showcasing robust growth and efficient operations in the renewable energy financing space.
The MoU signed for FY 2025-26 also goes beyond revenue goals, focusing on key financial performance parameters that are vital for long-term sustainability and growth. These include Return on Net Worth, Return on Capital Employed, NPA to Total Loans ratio, Asset Turnover Ratio, and EBITDA, among other targets. By incorporating such comprehensive financial metrics, the government and IREDA are ensuring a balanced approach that emphasizes both revenue expansion and financial health.
Expressing confidence in the company’s growth trajectory, Shri Pradip Kumar Das, CMD of IREDA, said that with the hope of continuing excellent performance for the current year, the company remains committed to sustaining its track record of excellence. He highlighted IREDA’s consistent delivery over the past few years, which has earned it an "Excellent" rating in MoU performance for four consecutive fiscal years, starting from FY 2020-21.
For FY 2023-24, IREDA stood out as the top performer in the NBFC and Power sector categories, and also ranked among the top four Central Public Sector Enterprises (CPSEs) across all sectors. This recognition came as part of a list of 84 CPSEs issued by the Department of Public Enterprises. Such a performance underscores IREDA’s role as a vital institution in financing India’s renewable energy ambitions, especially at a time when the country is pushing aggressively towards energy transition and net-zero targets.
The financial achievements of IREDA are closely tied to India’s broader renewable energy growth story. As the government continues to set ambitious targets for solar, wind, hydro, and bioenergy, institutions like IREDA play a crucial role in providing the financial backbone to projects across the nation. The agency’s ability to consistently outperform set targets not only reflects efficient management but also showcases the growing demand for clean energy financing in the country.
Following this announcement, IREDA’s shares were trading at Rs 149 per share on the National Stock Exchange (NSE), reflecting investor confidence in the company’s strong fundamentals and its future growth prospects. The market response also indicates that stakeholders view IREDA’s partnership with MNRE and its ambitious targets as a positive step in strengthening the renewable energy financing ecosystem.
With the ₹8,200 crore revenue target for FY 2025-26, IREDA is set to play a pivotal role in accelerating India’s clean energy momentum. The focus on both operational revenue and financial parameters ensures a holistic approach that balances growth with financial prudence. As India charts its path towards a greener and more sustainable future, IREDA’s performance and its ability to meet these targets will be critical in achieving national renewable energy goals.
At a time when renewable energy is becoming central to India’s development strategy, IREDA’s consistent success provides a strong signal of the sector’s resilience and potential. If the company continues on its current trajectory, it is likely to remain one of the top-performing CPSEs in the years to come, further cementing its reputation as the country’s renewable energy financing leader.
