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IRFC
SectorFinancial Services
Indian Railway Finance Corporation Limited (IRFC) is a Schedule A Public Sector Enterprise under the Ministry of Railways, Government of India. Established in 1986, IRFC's primary function is to borrow funds from financial markets to finance the acquisition and creation of assets for Indian Railways. The company leases rolling stock assets, railway infrastructure assets, and provides financing for national projects. IRFC operates on a financial leasing model, typically with 30-year lease periods for rolling stock assets. As of March 31, 2023, 86.36% of IRFC's equity was held by the President of India through the Ministry of Railways, with the remaining 13.64% held by the public. In the fiscal year 2020-21, IRFC's disbursement constituted 67.43% of the total capital outlay for Indian Railways.
In the news
IRFC Q2 FY27: Growth, Margins and the Diversification Push
IRFC Q2 profit up 10% YoY to ₹1,958 cr, declares record dividend
Corporate Developments: Strategic Moves Shaping India Inc
IRFC gets ₹397 cr GST show-cause notice from Bihar
IRFC hits 52-week low at ₹77.10 despite ₹4,200 cr DVC renewable deal
IRFC Stock Falls 35% Despite Record Q1 Profit Amid Growth Concerns
IRFC OFS Raises ₹2,100 Crore with Strong Retail Demand, 41.39% Subscription
Government's ₹16,000 Crore PSU Disinvestment Drive: Strategy, Market Dynamics & IRFC's Comeback Bid
Stocks to Watch Today: IRFC OFS, Airtel, Vedanta, Swiggy Leadership Changes
IRFC OFS Opens for Retail Today, Oversubscribed 1.86x
IRFC's Hyderabad Metro Gamble: Beyond Railways
IRFC Shares Jump 4% on ₹13,527 Cr Hyderabad Metro Refinancing Deal
IRFC targets ₹1 trillion loan sanction milestone in FY27
IRFC Targets ₹1 Lakh Crore Loan Sanctions in FY27 Amid Record Growth
IRFC Q4 profit rises marginally to ₹1,684 cr, FY26 PAT hits record ₹7,009 cr
IRFC sanctions ₹1,000 cr loan to Maharashtra power utility
IRFC, RailTel dividend record date March 13. IRFC OFS opens
IRFC Declares ₹1.05 Second Interim Dividend, Record Date March 13
IRFC OFS closes with tepid retail participation, government opts out
Railway stocks crash after Budget 2026 allocation announcement
The Quarter story
The two most recent quarterly results, compared side-by-side.
IRFC expands its asset base and diversifies funding, though rising debt and narrowing margins require attention.
Assets Under Management grew from ₹4,59,802 Cr to ₹4,79,282 Cr from Q1 FY26 to Q1 FY27 — steady portfolio expansion
Net Interest Margin fell from 1.53% to 1.48% from Q1 FY26 to Q1 FY27 — squeezed core lending profitability
Lease Receivables Project Assets rose from 29.15% to 51.75% from Q1 FY26 to Q1 FY27 — clear shift toward infrastructure projects
Total Debt climbed from ₹4,04,810 Cr to ₹4,37,028 Cr from Q1 FY26 to Q1 FY27 — increased leverage to fund growth
AUM Exposure to MoR declined from 98.46% to 92.43% from Q1 FY26 to Q1 FY27 — reduced reliance on railway funding
Agreements Executed dropped from ₹50,632 Cr to ₹14,600 Cr from Q2 FY26 to Q1 FY27 — uneven deal pipeline
Return on Equity rebounded from 12.81% to 13.34% from Q4 FY26 to Q1 FY27 — maintained shareholder returns
Borrowing Mix [Bonds] slipped from 58.88% to 53.15% from Q1 FY26 to Q1 FY27 — reduced dependence on traditional bond markets
Company insights, generated from the most recent coverage.
Management targets NIM expansion of only ~10 bps a year to reach 2% by 2030, from 1.48% in Q1 FY27. Even if mix shift works exactly as planned, this is a slow-burn re-rating story with no near-term margin step-up.
The 'Fund in India' model redirects money that previously arrived from bilateral and multilateral lenders through IRFC instead of the government budget. The first proof point is a >₹10,000 Cr World Bank-linked DFC loan refinanced onto IRFC's books — a structural, recurring flow rather than one-off deal wins.
Hyderabad Metro Phase 1 is agreed for refinancing and Phase 2 (~125 km, ~₹40,000 Cr) is progressing. Metro is the most credible next non-railway vertical because it is being won as refinancing from banks before IRFC takes any construction-stage risk.