Indian Railway Finance Corporation (IRFC) delivered its strongest-ever quarterly performance in Q1 FY2025-26, reporting a 10.7% year-on-year (YoY) rise in net profit to ₹1,745.7 crore, up from ₹1,576.8 crore. Revenue also edged up 2.2% YoY to ₹6,918.2 crore, making it the highest-ever total income reported for a quarter by the company.
This marks the first full quarter since IRFC received ‘Navratna’ status from the Government of India, giving it greater operational freedom. The company’s net interest margin improved to 1.53% (annualized), the best in three years, while its net worth climbed to ₹54,423.9 crore — the highest since inception.
Chairman and Managing Director Manoj Kumar Dubey attributed the performance to sound strategy, saying, “Our financial strength mirrors the transformation of Indian Railways. We’re committed to delivering efficiency and innovation.”
The company maintained a clean record with zero non-performing assets (NPAs) and one of the lowest overhead costs in the NBFC sector. Its debt-to-equity ratio improved further to 7.44, underscoring a healthier balance sheet.
IRFC is increasingly looking beyond its traditional lending role, aiming to support the entire railway ecosystem through strategic partnerships and project linkages. With stable cash flows and a low cost of capital, the company is positioning itself as a key player in India’s infrastructure push.
As IRFC enters its “2.0” phase, all signs point to continued momentum and deeper integration with the country’s fast-evolving railway sector.
