Indian Railway Finance Corporation (IRFC) has set an ambitious target of crossing the ₹1 trillion milestone in loan sanctions during FY27, marking a significant escalation from its previous ₹1 lakh crore target. According to reports from PTI, the company aims for loan sanction of ₹1 trillion and disbursement of about ₹40,000 crore during the ongoing financial year. The public sector undertaking is looking to raise ₹70,000 crore, including from overseas, to fund its business growth strategy. As Chairman and Managing Director Manoj Kumar Dubey told PTI, "We are aiming for a loan sanction of ₹1 trillion and disbursement of about ₹40,000 crore during the ongoing financial year, as the pipeline of high-quality infrastructure projects looks strong."
IRFC demonstrated robust performance in FY26, with the company sanctioning projects worth ₹72,949 crore and disbursing approximately ₹35,067 crore, which exceeded its annual guidance. As reported by PTI, the company achieved its highest-ever profit of ₹7,009 crore for FY26, compared to ₹6,502 crore in 2024-25, registering a growth of 7.8%. The company's total income rose to ₹7,329 crore in Q4 FY26, up 9% year-on-year from ₹6,724 crore in the same period of FY25. The company's total assets crossed the landmark milestone of ₹5 trillion for the first time in FY26, marking a significant achievement in its operational scale.
IRFC achieved several milestone financial metrics during FY26, with net worth rising to an all-time high at ₹56,748 crore and Assets Under Management (AUM) crossing a record high at ₹4.85 trillion. According to regulatory filings, the company's interest income increased to ₹2,902 crore as against ₹1,970 crore a year ago, while total expenses stood at ₹5,644 crore compared to ₹5,042 crore in the corresponding quarter of the previous year. The company maintained its zero NPA status throughout the period. Dubey noted that "Our diversification strategy is now translating into stronger spreads, improved margins and enhanced shareholder value."
IRFC has undergone a structural shift from a traditional railway financier to a diversified infrastructure financing institution, keeping railways at its centre. As reported by PTI, the company has expanded into sectors with strong forward and backward linkages to railways, including power generation, renewable energy, transmission, fertilizers, and railway-linked infrastructure. With Indian Railways not availing fresh disbursements since 2023-24, this diversification strategy has resulted in improved spreads and consistent rise in net interest margin (NIM). Dubey emphasized that "With Indian Railways not availing fresh disbursements since 2023-24, the company has expanded into sectors with strong forward and backward linkages to railways, including power generation, renewable energy, transmission, fertilizers and railway-linked infrastructure."
Looking ahead, Dubey expressed optimism about the company's growth trajectory, stating that the pipeline of high-quality infrastructure projects looks strong and that a steady pipeline and emerging opportunities in sectors such as metros and ports are expected to further accelerate growth in the coming financial year, following its whole-of-government approach. According to PTI reports, the company's NIM should further improve to 1.65% in FY27 as against 1.5% recorded in FY26, with the diversification strategy now translating into stronger spreads and enhanced shareholder value. IRFC actively participated in competitive and bilateral financing opportunities, securing bids worth around ₹56,251 crore and building a robust pipeline of high-quality infrastructure assets.
