Indian Railway Finance Corporation Ltd logo

Indian Railway Finance Corporation Ltd

IRFC NSE

Key Fundamentals

LargecapFinancial InstitutionFinancial Services
Market Cap
1.1L Cr
Volatility
Moderate
P/E Ratio
16.06
EBITDA
₹27,021 Cr
Return on Equity
12.35%
Debt to Equity
7.76
Book Value
₹43.42
EPS
₹4.93
52W High
₹137.17
52W Low
₹86.02

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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35 extracted metrics + investor summaries across FY15–FY26.

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Tapetide Score

Data-driven rating, 0–100. How it works →

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 34.0%

Weaknesses

6
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 11.6% over past five years.
  • Tax rate seems low
  • Company has a low return on equity of 13.0% over last 3 years.
  • Company might be capitalizing the interest cost
  • Company has high debtors of 5,136 days.

Growth Rate

Revenue Growth
0.67%
Net Income Growth
7.80%
Cash Flow Change
-428.41%
ROE
0.00%
ROCE
-5.68%
EBITDA Margin (Avg.)
-0.59%

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 5d ago
AI opinion · based on fundamentals
Risk high

IRFC is a ₹1.16 lakh crore market-cap NBFC serving as the dedicated financing arm of Indian Railways, trading at a P/E of 16.2x and P/B of 2.06x. FY25 revenue stood at ₹27,152 crore with net profit of ₹6,502 crore, while the stock has declined approximately 30% over the past year from its highs. The company operates with a high leverage model (debt-to-equity of ~7.8x) that is characteristic of its government-backed lending mandate.

Bull Case 8
  • Government of India holds ~86% stake, providing sovereign-backed credit profile and near-zero default risk on its loan book to Indian Railways
  • Consistent ROE of ~13% maintained over 3, 5, and 10-year periods despite being a low-spread lending business
  • Healthy dividend payout ratio of 34%, translating to a dividend yield of 2.35% at current prices — attractive among PSU financials
  • Net profit grew at 10% CAGR over 5 years and 24% CAGR over 10 years, demonstrating long-term earnings compounding
  • FY25 net profit of ₹6,502 crore vs ₹6,412 crore in FY24, showing continued profitability growth even in a slower revenue environment
  • India's railway capex outlay remains elevated at ₹2.5+ lakh crore annually, ensuring sustained demand for IRFC's financing services
  • Stock trades at 16.2x P/E, which is reasonable relative to its 10-year profit CAGR of 24% and stable government-backed earnings
  • Debt-to-equity ratio improved to 7.83x as of September 2024, showing gradual de-leveraging from historically higher levels
Bear Case 8
  • Extremely high debtor days of 5,136 days, indicating receivables are locked up for over 14 years — a structural cash flow concern
  • Stock has declined ~30% over the past year (1-year CAGR of -30%), significantly underperforming broader markets
  • Revenue growth has slowed to just 5% TTM and 5% 3-year CAGR, down sharply from the 14% 10-year CAGR
  • Low interest coverage ratio reflects vulnerability to any mismatch in borrowing and lending spreads
  • Debt-to-equity of ~7.8x is extremely high, meaning even small margin compression could materially impact equity returns
  • ROE of 13% is modest for a financial services company operating at nearly 8x leverage, implying very thin net interest margins
  • Potential capitalization of interest costs may overstate reported profitability and asset quality
  • Concentrated single-borrower risk — virtually entire loan book is lent to Indian Railways, offering no diversification

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 3h ago
Headwinds 1
  • Board non-compliance fine Jul 22

    Exchanges fined IRFC ₹9.55 lakh for failing to meet board composition norms for Q4FY26. Company seeking waiver citing lack of control over government-appointed directors.

Positives 5
  • Record Q1FY27 PAT ₹1,927 Cr Jul 30

    IRFC reported record Q1FY27 PAT of ₹1,927 crore and revenue of ₹8,261 crore, driven by lease income growth and zero NPAs.

  • ₹353 Cr tax demand set aside Jul 30

    Madras HC set aside a ₹353.18 crore tax demand related to unclaimed ITC, removing immediate financial liability. Matter remanded for fresh reconsideration within three months.

  • Strong BRSR disclosure, ₹56,749 Cr networth Aug 1

    IRFC disclosed FY 2025-26 BRSR reporting turnover of ₹27,284.15 Crore and net worth of ₹56,748.76 Crore, signaling robust financial position.

  • High speed rail foray planned Jul 31

    IRFC announced plans to enter high speed rail project financing in the near term, positioning itself in one of India's most capital-intensive infrastructure segments.

  • Higher loan disbursements expected FY27 Jul 31

    IRFC communicated expectations of increased loan disbursements for the remaining part of FY27, pointing to sustained railway financing activity.

Neutral 3
  • 39th AGM on August 25 Aug 2

    IRFC holds its 39th AGM on August 25, 2026. Shareholders to confirm interim dividends and approve appointment of Dr. Ranjay Choudhary as Director (Finance).

  • NIM guidance at 1.6% for FY27 Jul 31

    IRFC guided for a Net Interest Margin of 1.60% in FY27, providing a benchmark for assessing spread between borrowing costs and lending returns.

  • Q1FY27 earnings call held Jul 31 Jul 31

    IRFC held its post-results conference call on July 31, 2026 to discuss unaudited Q1FY27 financial results. Audio recording made available.

TL;DR: IRFC delivered a strong Q1FY27 with record PAT of ₹1,927 Cr, zero NPAs, and got relief from a ₹353 Cr tax demand. The company is expanding into high speed rail financing and expects higher disbursements in FY27. Risks are minimal — a small ₹9.55 lakh compliance fine is the only headwind. The trend is firmly positive with improving earnings visibility and strategic diversification into capital-intensive rail projects.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue
6,679
6,761
6,737
6,475
6,766
6,900
6,763
6,723
6,915
6,372
6,661
7,336
8,261
Expenses
29
34
35
34
33
38
39
44
47
49
104
118
42
Financing Profit
1,559
1,546
1,597
1,716
1,578
1,613
1,629
1,683
1,744
1,778
1,746
1,694
1,798
Fin. Margin %
23%
23%
24%
26%
23%
23%
24%
25%
25%
28%
26%
23%
22%
Other Income
2
1
3
3
0
1
3
1
3
0
58
-7
130
Interest
5,091
5,181
5,104
4,725
5,155
5,249
5,095
4,996
5,124
4,544
4,812
5,524
6,421
Depreciation
4
2
1
2
2
1
1
1
1
1
1
2
1
PBT
1,557
1,545
1,599
1,717
1,577
1,613
1,631
1,682
1,746
1,777
1,802
1,684
1,927
Tax %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Net Profit
1,557
1,545
1,599
1,717
1,577
1,613
1,631
1,682
1,746
1,777
1,802
1,684
1,927
EPS in Rs
1.19
1.18
1.22
1.31
1.21
1.23
1.25
1.29
1.34
1.36
1.38
1.29
1.47
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Revenue
6,939
7,507
9,047
9,267
11,134
13,421
15,771
20,299
23,892
26,650
27,153
27,285
28,630
Expenses
34
38
26
38
48
66
113
123
134
133
154
318
313
Financing Profit
1,914
1,950
2,133
2,592
2,902
3,192
4,420
6,102
6,310
6,415
6,504
6,962
7,016
Fin. Margin %
28%
26%
24%
28%
26%
24%
28%
30%
26%
24%
24%
26%
24%
Other Income
1
1
0
1
0
0
0
2
41
6
4
53
181
Interest
4,992
5,519
6,888
6,638
8,183
10,163
11,237
14,075
17,447
20,101
20,495
20,005
21,302
Depreciation
0
0
0
0
0
0
4
14
14
9
5
6
6
PBT
1,914
1,950
2,133
2,592
2,902
3,192
4,416
6,090
6,337
6,412
6,502
7,009
7,191
Tax %
60%
56%
56%
21%
22%
0%
0%
0%
0%
0%
0%
0%
Net Profit
758
849
934
2,055
2,255
3,192
4,416
6,090
6,337
6,412
6,502
7,009
7,191
EPS in Rs
212
188
143
3.15
2.4
2.69
3.38
4.66
4.85
4.91
4.98
5.36
5.5
Div. Payout %
20%
40%
40%
18%
18%
0%
31%
30%
31%
31%
32%
39%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
3,584
4,526
6,526
6,526
9,380
11,880
13,069
13,069
13,069
13,069
13,069
13,069
Reserves
5,098
6,999
5,483
7,402
15,648
18,419
22,845
27,928
32,402
36,110
39,599
43,680
Borrowing
71,270
87,503
1,06,395
1,34,006
1,73,933
2,34,377
3,23,145
3,88,440
4,18,935
4,12,039
4,12,133
4,36,471
Other Liabilities
7,696
9,372
11,245
13,534
7,642
10,828
21,423
20,544
26,742
23,865
24,034
23,457
Total Liabilities
87,647
1,08,400
1,29,650
1,61,468
2,06,604
2,75,504
3,80,482
4,49,980
4,91,147
4,85,082
4,88,835
5,16,676
Fixed Assets
12
12
12
11
11
11
45
38
19
22
18
18
CWIP
0
0
0
0
0
0
0
0
0
4
4
10
Investments
9
8
8
14
13
12
12
10
14
54
38
28
Other Assets
87,626
1,08,381
1,29,630
1,61,443
2,06,579
2,75,482
3,80,424
4,49,932
4,91,114
4,85,003
4,88,775
5,16,620
Total Assets
87,647
1,08,400
1,29,650
1,61,468
2,06,604
2,75,504
3,80,482
4,49,980
4,91,147
4,85,082
4,88,835
5,16,676
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-16,378
-19,455
-28,076
-41,748
-62,701
-89,907
-64,412
-28,584
7,914
8,230
-27,026
Investing
2
2
2
1
1
0
-5
0
-8
0
-3
Financing
17,582
18,250
28,075
41,749
62,697
90,202
64,266
28,643
-8,046
-2,572
21,560
Net Cash Flow
1,206
-1,204
0
3
-2
296
-151
60
-140
5,658
-5,469
Free Cash Flow
-16,378
-19,455
-28,076
-41,749
-62,701
-89,907
-64,419
-28,585
7,906
8,229
-27,030
CFO/OP
-213
-211
-298
-371
-465
-572
-319
-120
30
31
-100
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
9%
8%
8%
16%
12%
12%
13%
16%
15%
14%
13%
13%

Shareholding Pattern

As of Jun 2026
Promoters 82.90%
Public 11.25%
DIIs 3.97%
FIIs 1.18%
Others 0.70%
Total 100.00%
  Jan 2021Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
86.36%
84.65%
82.90%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
1.13%
1.15%
1.08%
1.11%
1.09%
1.01%
0.98%
0.93%
0.97%
0.98%
1.17%
1.18%
DIIs
3.10%
4.23%
3.75%
3.19%
3.21%
3.18%
3.26%
3.39%
2.96%
2.62%
2.03%
1.63%
1.16%
0.89%
1.07%
1.08%
1.24%
1.34%
1.46%
1.49%
1.55%
2.89%
3.97%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
6.18%
7.00%
7.92%
8.44%
8.46%
8.42%
8.44%
8.27%
8.69%
8.94%
9.52%
10.08%
10.55%
10.97%
10.80%
10.86%
10.78%
10.68%
10.59%
10.63%
10.57%
10.70%
11.25%
Others
4.35%
2.40%
1.97%
2.01%
1.97%
2.04%
1.94%
1.98%
1.98%
2.07%
2.09%
0.79%
0.78%
0.70%
0.65%
0.60%
0.61%
0.64%
0.65%
0.55%
0.53%
0.59%
0.70%
No. of Shareholders
0
8
13,52,260
14,49,110
14,77,210
15,19,490
15,15,230
14,90,300
14,59,500
16,34,920
18,05,740
27,03,000
32,51,990
45,26,340
51,08,890
55,00,050
55,40,770
56,35,780
54,51,170
53,17,980
51,69,330
51,13,570
50,86,490

Documents

Frequently Asked Questions about Indian Railway Finance Corporation Ltd

What does Indian Railway Finance Corporation Ltd do?
Incorporated in 1986, Indian Railway Finance Corporation borrows funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways as finance lease[1]
Where is Indian Railway Finance Corporation Ltd (IRFC) listed?
Indian Railway Finance Corporation Ltd is listed on the Indian stock exchanges. It is listed on NSE: IRFC and BSE: 543257. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Indian Railway Finance Corporation Ltd belong to?
Indian Railway Finance Corporation Ltd operates in the Financial Services sector within the Financial Institution industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Indian Railway Finance Corporation Ltd?
Indian Railway Finance Corporation Ltd has a market capitalisation of approximately ₹114976.72 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Indian Railway Finance Corporation Ltd?
The Price-to-Earnings (PE) ratio of Indian Railway Finance Corporation Ltd is 16.06. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Indian Railway Finance Corporation Ltd?
Over the past 52 weeks, Indian Railway Finance Corporation Ltd has traded between a low of ₹86.02 and a high of ₹137.17. This range helps investors understand the stock's price volatility and recent trading levels.
Does Indian Railway Finance Corporation Ltd pay dividends?
Yes, Indian Railway Finance Corporation Ltd has a dividend yield of 2.38%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Indian Railway Finance Corporation Ltd?
Indian Railway Finance Corporation Ltd has a Return on Equity (ROE) of 12.35%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Indian Railway Finance Corporation Ltd on Tapetide?
On Tapetide, you can view Indian Railway Finance Corporation Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 1986, Indian Railway Finance Corporation borrows funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways as finance lease[1]

Website irfc.co.in
Listed 2021-01-29
Face Value ₹ 10
Issued Size 13,06,85,06,000

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