Indian Railway Finance Corporation Limited is an India-based financing arm of the Indian railways. The Company operates through the Leasing and Finance segment. The company was founded on December 12, 1986 and is headquartered in New Delhi, India. IRFC is a Navratna and Schedule 'A' Public Sector Enterprise under the administrative control of the Ministry of Railways, Government of India. It is also registered as a Systemically Important Non-Deposit Taking NBFC and Infrastructure Finance Company.
The Company's principal business is to borrow funds from the financial markets to finance the acquisition / creation of assets, which are then leased out to the Indian Railways as finance lease. The Company's main business is to finance the acquisition of rolling stock assets, leasing of railway infrastructure assets, and lending to other entities under the Ministry of Railways (MoR). It also provides loans to Rail Vikas Nigam Limited (RVNL) and IRCON.
IRFC has a market capitalization of ₹1,81,966 crore as of recent data, making it one of the significant players in the infrastructure financing sector. The promoter holding stands at 86.4%, indicating strong government backing and control. The market capitalization has decreased by 4.27% over the last week, reflecting market volatility.
The company is well-represented across various indices, being part of BSE 500, BSE 200, BSE PSU, Nifty Next 50, Nifty 500, Nifty 100, Nifty PSE, Nifty 200, and several other major indices. This broad inclusion demonstrates its importance in the Indian equity market ecosystem.
For the full year, net profit rose 1.40% to Rs 6,502 crore in the year ended March 2025 as against Rs 6,412.11 crore during the previous year ended March 2024. Net profit of Indian Railway Finance Corporation declined 2.06% to Rs 1,681.87 crore in the quarter ended March 2025 as against Rs 1,717.32 crore during the previous quarter ended March 2024. Sales rose 3.87% to Rs 6,723.90 crore in the quarter ended March 2025 as against Rs 6,473.56 crore during the previous quarter ended March 2024.
- **Revenue (FY2025):** ₹27,153 crore
- **Net Profit (FY2025):** ₹6,502 crore
- **Assets Under Management:** ₹4.60 lakh crore
- **Net Interest Income (FY2025):** ₹6,568.9 crore
IRFC's Q1 results for the financial year 2024-25 showed a 1.64% rise in net profit and a 1.37% increase in revenue. In Q3 FY24-25, net profit was ₹1,630.66 crores, up from ₹1,598.93 crores in Q3 FY23-24 (+2.0% YoY), with earnings per share at ₹1.25 per share compared to ₹1.22 in Q3 FY23-24 (+2.5% YoY).
The Board of Indian Railway Finance Corporation at its meeting held on 28 April 2025 has approved raising of resources for the financial year 2025-26 up to Rs 60,000 crore from both domestic and international market on private placement or public issue basis. This demonstrates the company's aggressive growth strategy and capital expansion plans.
Indian Railway Finance Corporation Ltd (IRFC) has signed a ₹5,000 crore loan agreement with NTPC Ltd to support capacity expansion, marking a shift towards broader infrastructure financing beyond traditional railway projects. This deal signifies IRFC's strategy to diversify its funding focus and mobilize cheaper funds for infrastructure development.
IRFC aims to diversify funding by refinancing high-cost loans in the rail ecosystem, targeting a ₹30,000 crore disbursement this financial year. Indian Railway Finance Corporation (IRFC) is set to finance metro rolling stock projects, aiming for higher net interest margins.
The stock is trading at 3.45 times its book value, which indicates investor confidence in the company's asset quality. However, the company has low interest coverage ratio, which investors should monitor carefully.
The debt equity ratio improved to 7.81 in Q3 FY24-25 from 8.69 in Q3 FY23-24, showing better financial leverage management. The PE ratio of IRFC is 28.46 as of July 1, 2025.
The operating margin remains exceptionally strong, near 99%, underscoring IRFC's position as a low-cost, high-efficiency financial institution serving the Indian Railways. As of March 2025, IRFC generated a net cash flow from operating activities of ₹8,230 crore, up from ₹7,914 crore in March 2024.
IRFC appointed new CFO and secretarial auditor for 5 years, and approved key governance policies on 25 June 2025. Shwet Ketu Mishra (IRSS) has joined as Group General Manager (GGM) /Tech on 5 June 2025. The company also appointed Vallabhbhai Maneklal Patel as an Additional Director designated as Non official Independent Director on the Board w.e.f. 16 April 2025.
The company is experiencing a positive financial trajectory, marked by improvements in profit after tax, net worth, and earnings per share, while strategically diversifying beyond its traditional reliance on Indian Railways. With a substantial market opportunity valued at approximately INR 2.5 lakh crores, management has secured INR 14,000 crores through bids and anticipates rapid loan disbursements, enhancing operational performance.
The focus on high-quality A-plus rated assets is expected to yield margins significantly higher than previous earnings, supported by a robust pipeline of refinancing opportunities. Additionally, the company's competitive advantages, including low operating costs and a high capital adequacy ratio, position it favorably for future growth, reflecting strong market sentiment and operational execution.
Indian Railway Finance Corporation Limited continues to demonstrate resilience in its core business while actively pursuing diversification opportunities. The company's strong operational efficiency, government backing, and strategic expansion into broader infrastructure financing position it well for sustained growth in India's expanding infrastructure sector.
