IRFC slapped with ₹397 crore show-cause notice from GST authority; stock falls 37% year-to-date

The show cause notice, amounting to ₹396.91 crore is inclusive of applicable interest and penalty for the period from April 2022 to March 2023, according to a regulatory filing.

The company received the show-cause notice on September 29, 2026, under Section 73 of the BGST/CGST Act, 2017.

“As the case is at show cause notice stage only and order has not yet been issued, so expected financial implications cannot be quantified at this stage,” IRFC stated, adding that only after the issuance of the orer, can the penalty be quantified.

It further said that the issues raised are generic and the company is in the process of filing a reply to the show cause notice.

IRFC Q1 results

Indian Railways' fund arm reported a 10.40% year-on-year (YoY) increase in its net profit to ₹1,927 crore in the April-June quarter of the 2026-27 financial year (Q1 FY27), compared with ₹1,745.69 crore in the corresponding period of the previous fiscal year.

Its revenue from operations climbed 19.46% YoY to ₹8,261.11 crore for the quarter under review, against ₹6,915 crore in the June quarter of the 2025-26 fiscal year (Q1 FY26).

IRFC stock performance

Shares of IRFC closed 1.22% lower at ₹79.28 apiece on the National Stock Exchange (NSE) on Wednesday, September 30. However, the development was announced after the market closed.

The scrip has fallen 2% in the past week and 5% over the month. It has declined 37% on a year-to-date (YTD) basis.

While the stock hit a 52-week high of ₹137.17 per equity share on December 29, 2025, it touched a year’s low of ₹77.07 per unit on September 29, 2026.

IRFC has a total market capitalisation of ₹1.04 lakh crore as of September 30, 2026, according to data on the NSE.