IRFC Q4 earnings: Net profit rises marginally to ₹1,684 crore, interest income jumps 47%

Indian Railway Finance Corporation (IRFC), the state-run financial services company, on Thursday, May 14, reported a net profit of ₹1,684 crore in January-March quarter, marking a marginal increase of 0.14% from ₹1,682 crore in the same period last year. The Navratna public sector undertaking (PSU) under the Ministry of Railways said that for financial year 2025-26 its profit advanced 7.8%.

IRFC's interest income during the fourth quarter of financial year 2025-26 advanced 47% to ₹2,902 crore compared with ₹1,970 crore in the year-ago period.

"The company recorded a 7.80% rise in annual profit after tax (PAT) with positive revenue growth, net worth raising to all time high at ₹56,748 crore and assets under management (AUM) crossing an all-time high at ₹4.85 lakh crore. The diversification-led expansion resulted in improved spreads and a consistent rise in net interest margin (NIM), while lRFC maintained its pristine zero NPA status," IRFC said in a press release.

The company indicated that a steady pipeline and emerging opportunities in sectors such as metro and ports are expected to further accelerate growth in the coming financial year, following its whole-of-government approach, IRFC added.

"FY26 has been a defining year for lRFC. We have successfully built a diversified infrastructure financjng platform while remaining firmly aligned to our core mandate of supporting infrastructure within the railway ecosystem. Our diversification strategy is now translating into stronger spreads, improved margins and enhanced Shareholder value. IRFC has demonstrated its ability to compete effectively in the broader infrastructure financing market while maintaining financial prudence and its long-standing record of zero NPAs. As a Navratna CPSE, lRFC has been entrusted with a larger responsibility in supporting nation-building infrastructure, and we are well positioned to play a bigger strategic role in India’s infrastructure growth story," Manoj Kumar Dubey, Chairman & Managing Director, IRFC, said in a statement.

During the financial year 2025-26, IRFC sanctioned projects worth ₹ 72,949 crore and disbursed approximately Rs 35,067 crore, exceeding its annual guidance and demonstrating rapid scale-up of its diversified lending portfolio.

The company actively participated in competitive and bilateral financing opportunities, securing bids worth around ₹56,251 crore and building a robust pipeline of high-quality infrastructure assets, IRFC noted.

Among the key projects, lRFC refinanced a Dedicated Freight Corridor Corporation of India Limited's (DFCCIL) through a ₹9,821 crore long-term rupee facility, resulting in savings of approximately ₹2,700 crore.

The company also executed ₹12,842 crore refinancing deal for Hindustan Urvarak & Rasayan Limited (HURL), marking its entry into large-ticket refinancing in the fertilizer sector.

Its assets under management hit an all-time high of ₹4.85 lakh crore through fresh sanctions and disbursements in railway-linked segments. The company's total assets crossed the landmark milestone of ₹5 lakh crore for the first time.

lRFC has, over the past year, recalibrated its operations in response to reduced reliance on its traditional lending model. With Indian Railways not availing fresh disbursements since FY 2023-24, the company has expanded into sectors with strong forward and backward linkages to railways, including power generation, renewable energy, transmission, fertilizers and railway-linked infrastructure, the company said.

IRFC shares declined nearly 1% to ₹100 after its earnings announcement.