The IREDA share price target 2040 has become an important point of analysis for investors watching India’s long-term renewable energy revolution. Indian Renewable Energy Development Agency (IREDA), a government-backed PSU under the Ministry of New and Renewable Energy (MNRE), plays a vital role in funding India’s renewable energy growth.
As India goes beyond capacity addition toward grid stability, energy storage, green hydrogen, and decarbonisation targets, IREDA’s relevance as a specialist renewable financing agency is projected to expand further. This places the corporation as a structural beneficiary of policy consistency rather than short-term market cycles.
This paper gives a forward-looking evaluation of the IREDA share price target 2040, based by past performance, revenue scaling, ownership structure, and long-term growth projections.
IREDA Share Price Target 2040
Based on steady loan book expansion, predictable financing demand, and gradual improvement in profitability, the IREDA share price target 2040 is projected as follows:
IREDA Share Price Target 2040
-
Conservative Case: ₹1,000
-
Base Case: ₹1,100
-
Optimistic Case: ₹1,200
These projections assume long-term compounding rather than aggressive valuation re-rating. By 2040, IREDA is expected to operate as a mature renewable finance PSU with stable earnings visibility and manageable asset quality.
Business Position & Renewable Energy Outlook
IREDA’s business model is fully matched with India’s renewable energy policy framework. Unlike power producers or EPC businesses, IREDA profits from expansion throughout the whole clean energy ecosystem by funding solar, wind, hydro, storage, biomass, and developing green technologies.
By 2040, renewable energy is predicted to dominate India’s electrical generating mix. This structural transformation increases long-duration financing visibility and supports the long-term argument for the IREDA share price target 2040.
Current Market Overview
IREDA Fundamentals
| Fundamental Metric | Value |
|---|---|
| Market Capitalisation | ₹38,262 Cr |
| P/E Ratio (TTM) | 22.22 |
| P/B Ratio | 2.96 |
| Industry P/E | 21.16 |
| Debt to Equity | 5.41 |
| Return on Equity (ROE) | 13.34% |
| EPS (TTM) | ₹6.13 |
| Dividend Yield | 0.00% |
| Book Value | ₹46.00 |
| Face Value | ₹10 |
How IREDA’s Projected Growth From 2026 to 2040 Shapes Long-Term Outlook
The IREDA share price target 2040 is not based on individual assumptions but on a systematic development trajectory that rises gradually from the post-listing period. Starting from 2026, IREDA is predicted to benefit from rising renewable finance demand, balance sheet growth, and steady profitability improvement.
Projected Growth Path (2026–2040)
| Metric | FY2021 | FY2025 | Trend |
|---|---|---|---|
| Revenue (₹ Cr) | ~3,200 | ~6,600 | Strong expansion |
| Net Profit (₹ Cr) | ~760 | ~1,700 | More than doubled |
| EPS (₹) | 3.3 | 6.9 | Consistent improvement |
| Net NPA (%) | 1.61% | 1.97% | Largely under control |
What This Projection Indicates
- Share price estimates reflect step-by-step compounding, not instantaneous re-rating
- Revenue growth is projected to reflect renewable capacity increases and financing demand
- Each step indicates rising balance sheet size and earnings scale
- By 2040, IREDA is predicted to function as a mature renewable finance PSU with stable cash flows
This phased growth trajectory provides the financial and operational basis for the IREDA share price target 2040, linking near-term execution with long-term outcomes.
Key Growth Drivers Supporting IREDA
Several long-term trends are expected to drive IREDA’s performance over the next two decades:
- India’s large-scale renewable and storage capacity increase
- Financing requirements for green hydrogen and hybrid energy projects
- Growing importance of international climate financing
- Policy-backed demand for long-duration infrastructure financing
- Rising relevance of sustainable financing in capital markets
These drivers strengthen IREDA’s position as a long-term renewable finance enabler.
Risks to Consider Over the Long Term
While the outlook remains constructive, investors should be mindful of:
- Margin pressure during lengthy high interest rate cycles
- Asset quality stress if project execution slows
- PSU stocks failing amid extended poor market sentiment
These risks may affect interim valuations but do not necessarily undermine the long-term thesis if managed prudently.
Conclusion: IREDA Share Price Target 2040
The IREDA share price target 2040 of ₹1,000–₹1,200 represents a balanced, fundamentals-driven forecast matched with India’s clean energy revolution. Supported by government support, scalable funding demand, and proven execution, IREDA is positioned as a solid long-term compounder rather than a speculative high-growth company.
For investors wanting a larger, multi-decade view, look to our thorough analysis on IREDA share price target 2026 to 2050, which covers extended possibilities across different time horizons.
FAQs
1. What is the IREDA share price target 2040?
The IREDA share price target 2040 is projected in the range of ₹1,000 to ₹1,200, based on long-term renewable financing demand and steady earnings growth.
2. What assumptions are used to estimate the IREDA share price target 2040?
The projections assume continued government support, rising renewable energy capacity, controlled asset quality, and gradual improvement in profitability.
3. Can IREDA sustain growth for such a long period?
IREDA’s growth is supported by India’s long-term renewable energy commitments, which provide multi-decade financing visibility rather than short-term growth spurts.
4. How important is renewable energy policy for IREDA’s 2040 outlook?
Renewable energy policy is critical, as IREDA’s lending activity is directly linked to government-led clean energy targets and incentives.
5. Does IREDA’s high debt pose a risk by 2040?
High leverage is structural to IREDA’s financing model and is supported by asset-backed lending and government backing, reducing long-term risk.
6. How does IREDA compare with other PSU financiers for long-term investment?
Compared to general PSU lenders, IREDA benefits from sector-specific exposure to renewable energy, which offers better long-term growth visibility.
7. Will institutional investors play a bigger role in IREDA by 2040?
Institutional participation may increase over time as IREDA’s earnings scale and visibility improves, potentially supporting valuation expansion.
8. Can IREDA become a multibagger by 2040?
IREDA is more likely to deliver steady compounding rather than sharp multibagger returns, making it suitable for patient investors.
9. What risks could affect the IREDA share price target 2040?
Key risks include interest rate volatility, asset quality stress, and PSU stock underperformance during weak market cycles.
10. Is IREDA suitable for very long-term investors beyond 2040?
Yes, IREDA’s role in financing India’s clean energy transition makes it relevant for investors with a multi-decade investment horizon.
Disclaimer
The information provided in this blog is for educational purposes only and does not constitute financial advice. Investors should research and consult with a financial advisor before making investment decisions.
Call to Action
Stay updated with the latest trends and forecasts by visiting sharesprediction regularly. Our comprehensive analyses and insights can help you make informed investment decisions.
