IRFC
Large CapIndian Railway Finance Corporation Limited
Financial Services
IRFC is registered with RBI as a systemically important NBFC-ND-IFC, majorly owned by GoI through MoR. It is the dedicated market borrowing arm for Indian Railways, financing rolling stock, leasing railway infrastructure, and lending to other MoR entities.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 40/100Rev +9% YoY · PAT +0% YoY · +10% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,336 Cr | +9.1% | +10.1% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹1,684 Cr | +0.1% | -6.5% |
| PAT margin | 23.0% | -206 bps | -409 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
IRFC reported a 7.80% YoY increase in PAT to INR 7,009.17 Cr for FY25-26, with Revenue from Operations up 0.49% to INR 27,284.15 Cr. AUM grew 5.34% to INR 4,84,616.77 Cr, and NIM stood at 1.50%.
IRFC maintains its strategic role as the dedicated financier for Indian Railways, demonstrating consistent financial performance with strong asset quality (NIL GNPA). Diversification into non-MoR infrastructure financing presents a new growth avenue, though its impact on overall risk profile needs monitoring.
AUM Break-Up (FY 25-26)
Latest issuer-disclosed distribution across 4 reported categories.
Diversified Infrastructure Financing
Executed agreements worth ₹72,949 crore and disbursed ₹35,067 crore in non-MoR business in FY25-26, significantly scaling up diversified financing.
Strategic Diversification
Targeting critical Railway ecosystem infrastructure such as PPP projects, metros, station development, first-last mile connectivity, and ports.
Non-conventional Energy Funding
Funding renewable energy for the Railway Network is identified as an opportunity.
Non-MoR Agreements Executed
Executed agreements worth ₹72,949 crore in FY25-26 for diversified infrastructure financing.
Non-MoR Disbursements
Disbursed ₹35,067 crore in FY25-26 for non-MoR business, creating a diversified infrastructure lending portfolio pipeline.
Strategic Role
IRFC is the dedicated market borrowing arm for the Indian Railways.
Government Support
MoR is required to provide for any shortfall in funding under the Standard Lease Agreement.
Regulatory Exemptions
Exempted from RBI's asset classification, provisioning, and exposure norms for direct MoR exposure, and not required to pay MAT.
Highest Credit Rating
Enjoys highest credit rating (AAA) for an Indian issuer from ICRA, CRISIL & CARE.
Credit Risk Concentration
92.56% of AUM is exposure to MoR, though management states it has minimal credit risk due to MoR backing.
Increased Impairment on Financial Instruments
Impairment on Financial Instruments rose significantly to INR 124.03 Cr in FY25-26 from INR 0.68 Cr in FY24-25.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document provides annual financial statements and performance highlights for the year ended March 31, 2026, with comparisons to the previous fiscal year (FY24-25), indicating a focus on annual performance trends.
AUM Growth
AUM grew to INR 4,84,616.77 Cr in FY25-26 from INR 4,60,047.84 Cr in FY24-25, a 5.34% YoY increase.
Disbursements
Total disbursements for FY25-26 were INR 35,067 Cr, significantly up from INR 732 Cr in FY24-25.
Net Interest Margin (NIM)
Annualized NIM for FY25-26 was 1.50%.
Borrowing Cost
Company claims competitive cost of borrowing due to strong credit ratings and diversified funding sources.
Transformation to Diversified Financier
Management states IRFC is transforming to a diversified financier supporting broader infrastructure within the Railway ecosystem.
Strategic Collaborations
IRFC has entered into MoUs with various entities like VOCPA, SFCL, RITES, DMRC, IIFCL, REMCL, MMRDA & JNPT for strategic collaboration.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Non-MoR Disbursements | ₹35,067 Cr (FY25-26) | Continued growth and diversification of disbursements beyond MoR. |
| Impairment on Financial Instruments | INR 124.03 Cr (FY25-26) | Trend in impairment charges, especially with increasing non-MoR exposure. |
| Net Interest Margin (NIM) | 1.50% (FY25-26) | Stability or improvement in NIM amidst diversified funding and lending. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
41NeutralSMA20 -11.6% / mo · near 52W low
Technical chart
IRFCdaily · 5Y-21.1%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 41.
- SMA20 falling (~6.7% over last month) — short-term momentum negative.
- RSI(14) at 41 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 30% off 52W high · 10% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 54.8%.
- Valuation contributes 12/30 to the score.
- Growth contributes 7/25 to the score.
Main drags
- Altman Z is 0.3, in distress territory.
- Quality is weaker at 1/20; verify the latest quarterly trend.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +3 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 8th percentile of the scored universe and 16th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 84.7%. Key concern: Operating cash flow is negative at ₹-27026 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 16th pctile, median 62 · Large: 5th pctile, median 74
67 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 84.7%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-27026 Cr.
- ▸Debt/equity is 7.69.
- ▸Altman Z is 0.32.
- ▸Promoter holding fell 1.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 18.00
- P/B
- 2.22
- EV/EBITDA
- 93757.17
- Market Cap
- 126072.00Cr
Profitability
- ROE
- 12.80%
- ROCE
- 5.64%
- ROA
- 1.36%
- Dividend Y
- 2.18%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- 3.00%
Balance Sheet
- Debt/Equity
- 7.69
- Interest Coverage
- —
- Altman Z
- 0.32
- Book Value
- 43.40
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- -27026.00 Cr
- EPS TTM
- 5.36
Shareholding
- Promoter Hold
- 84.65%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 15%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.