IRFC gains after Q1 PAT rises 11% YoY to Rs 1,746 cr

Indian Railway Finance Corporation (IRFC) rallied 3.21% to Rs 135 after the company's standalone net profit rose by 10.70% to Rs 1,745.69 crore in Q1 FY26 as against Rs 1,576.83 crore posted in Q1 FY25.

Total revenue from operations increased by 2.21% year-on-year (YoY) to Rs 6,915.38 crore in the quarter ended 30 June 2025.

Profit before tax stood at Rs 1,745.69 crore in Q1 FY26, up 10.70% from Rs 1,576.83 crore recorded in the same period a year ago.

On the margins front, the companys net interest margin improved to 1.53% (annualized), the best in the last three years, reflecting stronger lending spreads and tighter cost management. The firm also reported a book value of Rs 41.65 per share. IRFCs net worth now stands at Rs 54,423.96 crore, marking the highest level since its inception.

Manoj Kumar Dubey, chairman and managing director of lRFC, said, "Our performance this quarter reflects the robustness of IRFC's financial strategy and its critical role in advancing the infrastructure goals of Indian Railways. As the sector undergoes unprecedented transformation, we are committed to driving financial innovation and maintaining operational excellence."

Dubey further added, "We continue to secure the very attractive cost of capital within the ecosystem of NBFC and true to our ethos we are sharing this benefit directly with our customers. The competitive edge with very low overhead cost coupled with zero NPA and stable cash flows sets us apart in the industry, not just in pricing but in creating true partnership."

Indian Railway Finance Corp.'s principal business is to borrow funds from the financial markets to finance. The Government of India held an 86.36% stake in the company as of 30 June 2025.

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