IREDA and Tata Technologies Shares Gain Nearly 2% After Inclusion in March F&O Series
The shares of Indian Renewable Energy Development Agency (IREDA) and Tata Technologies surged over 2% on Thursday, February 20, following an announcement by the National Stock Exchange (NSE) regarding the inclusion of these stocks in the March Futures & Options (F&O) series. The addition of these stocks to the derivatives segment indicates growing investor interest and increased trading activity in these companies.
IREDA & Tata Technologies Added to NSE Derivatives Contracts
The National Stock Exchange (NSE), in its latest update, confirmed that futures and options (F&O) contracts for IREDA and Tata Technologies will be available for trading from February 28, 2025. This decision follows a comprehensive assessment based on the Quarter Sigma computation cycle of February 2025 to ensure eligibility criteria are met.
NSE’s Official Statement on the Inclusion
In its circular, NSE stated:
“The futures and options contracts on the following securities would be available for trading w.e.f. February 28, 2025, subject to fulfillment of eligibility criteria of the Quarter Sigma computation cycle of February 2025.”
Additionally, NSE clarified that details regarding the market lot and scheme of strikes for the newly added securities will be released separately on February 27, 2025. The applicable quantity freeze details will also be available in the contract file applicable from February 28, 2025.
IREDA & Tata Technologies Stock Movement Post Announcement
Following the F&O inclusion news, both IREDA and Tata Technologies witnessed an uptrend in their stock prices.
- IREDA Stock Performance:
- Gained 1.7%, reaching ₹173.1 per share on the Bombay Stock Exchange (BSE) during intraday trading.
- Tata Technologies Stock Performance:
- Surged 2.2%, trading at ₹745.8 per share on the NSE Nifty 50 index at 11:10 AM.
This positive movement reflects growing market optimism and increased investor participation ahead of the F&O contracts launch.
Understanding the Impact of F&O Inclusion
What Does F&O Inclusion Mean for a Stock?
When a stock is added to the Futures & Options segment, it brings multiple benefits, including:
- Higher Liquidity – Increased participation from institutional investors and traders.
- Greater Price Discovery – More efficient and transparent stock pricing.
- Increased Volatility – Due to higher trading volumes in the derivatives market.
- Better Risk Management – Investors can hedge their positions using derivatives.
With the derivatives market playing a crucial role in overall trading activities, stocks included in the F&O list generally witness increased interest from traders and long-term investors.
Financial Performance of IREDA and Tata Technologies (Q3 FY25)
IREDA: Strong Q3 Performance with 26.8% Profit Growth
The state-run Indian Renewable Energy Development Agency (IREDA) delivered a strong financial performance in Q3 FY25, with significant growth in profitability and revenue.
- Net Profit: Surged 26.8% year-on-year (YoY) to ₹425.4 crore, compared to ₹335.5 crore in the same quarter last year.
- Net Interest Income (NII): Increased 39% YoY, reaching ₹622.3 crore, up from ₹448.1 crore in Q3 FY24.
The impressive earnings growth was driven by higher loan disbursements, strong asset quality, and a robust renewable energy financing pipeline.
Tata Technologies: Marginal Decline in Profit Despite Revenue Growth
Unlike IREDA, Tata Technologies faced a 1% drop in net profit in Q3 FY25, primarily due to higher expenses.
- Net Profit: Declined 1% YoY to ₹168.6 crore, compared to ₹170.2 crore in the year-ago quarter.
- Revenue from Operations: Increased 2.2% YoY, reaching ₹1,317.4 crore, up from ₹1,289.5 crore.
- Total Expenses: Rose 3.15%, totaling ₹1,119.31 crore, compared to ₹1,085.14 crore in Q3 FY24.
- EBITDA: Fell 1.1% to ₹234.1 crore, with an EBITDA margin contraction from 18.4% to 17.8%.
Despite the profit decline, Tata Technologies continues to expand its operations, particularly in the automotive, aerospace, and digital engineering sectors.
Market Reaction & Investor Sentiment
The inclusion of IREDA and Tata Technologies in the F&O segment has significantly boosted investor sentiment.
Why Are Investors Bullish on These Stocks?
- IREDA’s Strong Renewable Energy Focus
- As a government-backed financial institution, IREDA plays a key role in India’s green energy transition.
- The rising demand for renewable energy financing positions IREDA for long-term growth.
- Tata Technologies’ Engineering Excellence
- With its strong automotive and aerospace engineering capabilities, Tata Technologies is well-positioned for expansion.
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