Indian Railway Finance Corporation (IRFC) shares surged over 2% in early trade after the company posted its strongest-ever quarterly results for Q1 FY2025-26. As of 9:16 AM, the shares were trading 2.32% higher at Rs 133.80.
The railway PSU reported a 10.7% year-on-year (YoY) jump in net profit to ₹1,745.7 crore, up from ₹1,576.8 crore in the same quarter last year. Revenue also rose 2.2% YoY to ₹6,918.2 crore — the highest quarterly income ever recorded by the company.
This was IRFC’s first full quarter since it received the coveted ‘Navratna’ status from the Government of India, a move that has given the company greater operational autonomy. The improved status seems to be translating into performance, with the company’s net interest margin (NIM) touching 1.53% (annualized) — its best in three years.
Net worth also hit an all-time high of ₹54,423.9 crore, signaling a strong and growing financial base. In a sector often weighed down by bad loans and inefficiencies, IRFC stood out by maintaining zero non-performing assets (NPAs) and keeping one of the lowest overhead cost structures among non-banking financial companies (NBFCs).
Manoj Kumar Dubey, IRFC’s Chairman and Managing Director, credited the record performance to a focused strategy and disciplined execution. “Our financial strength mirrors the transformation of Indian Railways. We’re committed to delivering efficiency and innovation,” he said.
Another positive highlight was the company’s improving balance sheet. Its debt-to-equity ratio improved to 7.44, reflecting better capital management and reduced risk exposure.
Looking ahead, IRFC is slowly expanding beyond its traditional lending business. The company has expressed plans to play a more integrated role in India’s infrastructure story by supporting railway-linked projects and forming strategic partnerships. With stable cash flows and access to low-cost capital, IRFC appears well-positioned to back India’s growing infrastructure push.
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