IRFC shares rally 5% on posting strongest-ever quarterly performance in Q1

IRFC shares rose in today's trade after the company posted its strongest-ever quarterly performance for the June quarter of FY26, backed by robust earnings growth and operational improvements.

IRFC share price: State-owned Indian Railway Finance Corporation (lRFC) shares were buzzing in trade on Wednesday, July 23, 2025, with the scrip rising up to 4.66 per cent to an intraday high of ₹136.90 per share. 

 

Around 1:30 PM, IRFC share price was trading 2.87 per cent higher at ₹134.55 per share. By comparison, BSE Sensex was trading 0.45 per cent higher at 82,553.46 levels.

 

Why did IRFC share price rise in trade today?

 

IRFC shares rose in today’s trade after the company posted its strongest-ever quarterly performance for the June quarter of FY26 (Q1FY26), backed by robust earnings growth and operational improvements.

 

IRFC, on Tuesday, reported double-digit growth in profit and a steady rise in revenue compared to the year-ago period. The company’s total income rose to ₹6,918.24 crore in Q1FY26, up from ₹6,766.03 crore in Q1FY25 – marking the highest-ever quarterly revenue in its history.

 

Profit After Tax (PAT) for the quarter grew 10.71 per cent year-on-year (Y-o-Y) to ₹1,745.69 crore, compared to ₹1,576.83 crore in the same period last year. This also represents IRFC’s highest-ever quarterly PAT. 

 

Net interest margin (annualised) improved to 1.53 per cent, the best in the past three years, driven by better lending spreads and tighter cost management.

 

IRFC's net worth now stands at ₹54,423.96 crore, a record high, with a book value of ₹41.65 per share.

 

Additionally, the company's debt-to-equity ratio improved further to 7.44, highlighting a healthier balance sheet. It also retained the lowest overhead cost in the industry, reinforcing its reputation for operational efficiency. Notably, lRFC reported a continued streak of zero non-performing assets (NFIA), maintaining a clean loan book. 

 

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." 

 

"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," Dubey added.

 

This also marks the first full quarter since IRFC was accorded ‘Navratna’ status by the Government of India, which has given the company greater operational and investment autonomy. 

 

The status upgrade, along with record results, signals a strong strategic shift as IRFC expands its role beyond financing Indian Railways to a wider ecosystem of railway-linked infrastructure projects.

 

“In lRFC 2.0, the company is well on the growth path with proliferation of assets in the whole railway ecosystem with backward and forward linkage to railway centric projects,” IRFC said in a statement.  Catch Stock Market LIVE Updates

About IRFC 

 

IRFC, established in December 1986, is the dedicated funding arm of Indian Railways. Its primary objective is to mobilise funds from domestic and international markets to support the Extra Budgetary Resources required for the expansion and operation of Indian Railways. 

 

By borrowing from financial markets, IRFC acquires assets that are then leased to Indian Railways, ensuring a steady flow of resources for infrastructure development.

 

Governed by the Ministry of Railways, IRFC is predominantly owned by the Government of India. It raises capital through a variety of sources, including term loans and bonds, enabling it to fulfil the financial needs of one of the largest railway networks in the world.