IRFC
IRFC
Financial Services F&OKey Fundamentals
MidcapFinancial InstitutionFinancial ServicesPrice-based figures as of 8 Oct 2026, 11:47 am IST · EPS basis: Standalone · TTM
Tapetide Score
Data-driven rating, 0–100. How it works →
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
AI Analysis — Bull vs Bear
As of the 2026-10-07 close, IRFC traded at ₹76.15, a market cap of about ₹99,517 crore, a P/E (TTM) of 13.85x on EPS of ₹5.50 and a P/B of 1.75x. The price sits right at the 52-week low of ₹76.04 and about 44% below the 52-week high of ₹137.17, after a 1-year stock return of -39%. Fundamentals show steady but slowing growth: TTM sales growth of 5% and profit growth of 8%, 3-year profit CAGR of 3%, ROE of 12.35% and a dividend yield of 2.72%.
- Valuation has compressed a lot. The P/E (TTM) is 13.85x and P/B is 1.75x at ₹76.15, after a 39% fall over 1 year. That lowers the earnings multiple compared with the stock's recent trading range.
- The stock is trading at ₹76.15, almost exactly at its 52-week low of ₹76.04 and about 44% below its 52-week high of ₹137.17. Much of the earlier valuation premium has already been removed.
- IRFC pays a dividend yield of 2.72% and keeps a dividend payout of about 34%. This gives shareholders a steady cash return backed by EPS of ₹5.50.
- Its main counterparty is the Ministry of Railways, and the Government of India is the majority owner. This means low credit risk compared with typical lenders, and its 5,136 debtor days mostly reflect the long-dated lease structure rather than bad loans.
- Returns have been stable. ROE was 13% over the last year, 13% over 3 years, 14% over 5 years and 13% over 10 years, which points to a predictable, low-volatility earnings model.
- Profit growth has picked up recently. TTM profit growth of 8% is ahead of TTM sales growth of 5% and well above the 3-year profit CAGR of 3%, suggesting better spreads or cost efficiency.
- The long-term record is strong. Profit compounded at 24% and sales at 14% over 10 years, and the 5-year stock CAGR is 27%, showing the business can scale with railway capex cycles.
- Growth has slowed sharply. The 3-year sales CAGR is 5% and the 3-year profit CAGR is just 3%, compared with 12% and 10% over 5 years. This suggests the high-growth phase of railway financing may be behind it.
- Price momentum is weak. The stock is down 39% over 1 year, has a 3-year CAGR of only 1%, and is trading at its 52-week low of ₹76.04, so investors who bought at higher levels have seen little return.
- Returns on capital are modest. ROE is 12.35% (13% average over 3 years), and ROCE is only 5.48%, which is typical of a thin-spread, highly leveraged lending model.
- Interest coverage is low. Most income goes to servicing borrowings, so even small shifts in funding costs or lease spreads can have a large impact on earnings per share of ₹5.50.
- Earnings quality needs scrutiny. Debtors stand at 5,136 days, interest cost may be capitalised (pre-commencement interest on project assets) and the effective tax rate looks low. Reported profit may not reflect cash generation.
- Concentration risk is high. Nearly all business comes from one counterparty, the Ministry of Railways. Any change in railway budget allocation, borrowing policy or lease terms directly affects revenue growth, which is already down to 5% TTM.
- Even at 13.85x earnings and 1.75x book, the stock trades at a premium to book value despite single-digit growth (3-year profit CAGR of 3%) and ROE of about 12%. That premium is harder to justify on growth alone.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- ₹396.91 cr GST show cause Sep 30
IRFC received a GST show cause notice for ₹396.91 crore covering April 2022 to March 2023. The company plans to file a detailed reply and pursue legal remedies, so the final liability is uncertain.
- Exchange fines for governance lapse Sep 30
The board noted fines from the stock exchanges for governance non-compliance and is seeking a waiver. It says director appointments are controlled by the government. This is a recurring PSU board-composition issue and not specific to IRFC's operations.
- ₹4,200 cr DVC renewable loan Sep 28
IRFC signed a ₹4,200 crore term loan with Damodar Valley Corporation, achieving financial closure for DVC's renewable projects up to 2030 in Jharkhand and West Bengal. The projects cover floating, ground-mounted and rooftop solar plus BESS, and will use DVC's existing land, reservoirs and transmission infrastructure.
- ₹13,527 cr Hyderabad Metro refinancing Sep 28
IRFC earlier signed a ₹13,527 crore term loan with L&T Metro Rail (Hyderabad) to refinance the Hyderabad Metro project's debt. This adds a large-ticket non-railway asset to its loan book.
- Diversification beyond railway lending Sep 28
CMD Manoj Kumar Dubey described IRFC's growing portfolio in renewable energy, power, metro rail and logistics as strategic diversification linked to the railway ecosystem. He tied it to Indian Railways' Net Zero by 2030 target. This reduces IRFC's dependence on Ministry of Railways borrowing.
- Joint statutory auditors for FY27 Sep 17
IRFC appointed GSA & Associates LLP and K G R S & Co as joint statutory auditors for FY2026-27, following a C&AG directive dated September 9, 2026. This is a routine PSU compliance step, reported on Sep 10 and Sep 17.
TL;DR: IRFC is diversifying its loan book, with ₹4,200 crore committed to DVC renewables and ₹13,527 crore to Hyderabad Metro refinancing, which reduces its reliance on Ministry of Railways lending. The risks are the ₹396.91 crore GST show cause notice, which is under contest, and repeated exchange fines over board composition that IRFC cannot fully control. The GST amount is small compared with IRFC's balance sheet, but it is a contingent liability worth tracking. The trend looks steady to improving, and the outlook depends on whether non-railway lending can scale while keeping asset quality and spreads intact.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 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 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 9% | 8% | 8% | 16% | 12% | 12% | 13% | 16% | 15% | 14% | 13% | 13% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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55 extracted metrics + investor summaries across FY15–FY27.
Documents
Frequently Asked Questions about IRFC
What does Indian Railway Finance Corporation Ltd do?
Where is Indian Railway Finance Corporation Ltd (IRFC) listed?
Which sector does Indian Railway Finance Corporation Ltd belong to?
What is the market capitalisation of Indian Railway Finance Corporation Ltd?
What is the PE ratio of Indian Railway Finance Corporation Ltd?
What is the 52-week high and low of Indian Railway Finance Corporation Ltd?
Does Indian Railway Finance Corporation Ltd pay dividends?
What is the Return on Equity (ROE) of Indian Railway Finance Corporation Ltd?
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]
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