In the IPL 2025, the Punjab Kings acquired the services of Iyer in the mega auction. Leading the PBKS' pack, he guided them to the league's final, in which they suffered a loss against Royal Challengers Bengaluru (RCB) by six runs

Ahead of the IPL 2025 mega-auction, SRH retained Nitish Kumar Reddy for a significant sum of Rs 6 crore, underlining his value to the franchise. He was among just five players kept on by the team following their impressive run to the IPL 2024 final. In the 2025 season, Reddy featured in 13 matches, scoring 182 runs