IRFC
IRFC
Financial Services F&OKey Fundamentals
MidcapFinancial InstitutionFinancial ServicesTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 34.0%
Weaknesses
6- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 11.6% over past five years.
- Tax rate seems low
- Company has a low return on equity of 13.0% over last 3 years.
- Company might be capitalizing the interest cost
- Company has high debtors of 5,136 days.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoIndian Railway Finance Corporation Ltd (IRFC) is a ₹1,05,371 Cr market cap NBFC that serves as the dedicated financing arm of Indian Railways. The stock trades at a P/E of 14.8x and P/B of 1.87x with a consistent ROE of ~13% over the past decade, while revenue has grown at a 5% TTM rate and the stock has declined 35% over the past year.
- IRFC enjoys a sovereign-backed business model as the dedicated borrowing arm of Indian Railways, with the Government of India as its sole client, virtually eliminating credit risk on its loan book
- Compounded profit growth of 24% over the last 10 years demonstrates a strong long-term earnings trajectory, supported by India's sustained railway capex push
- Dividend yield of 2.59% is attractive relative to most Indian financial services peers, backed by a healthy payout ratio of 34.0%
- P/E ratio of 14.8x is reasonable for a government-backed NBFC with near-zero NPA risk, offering valuation comfort compared to the broader market
- Consistent ROE of 13% maintained across 3-year, 5-year, and 10-year periods reflects stable and predictable return generation
- 5-year stock CAGR of 29% reflects significant long-term wealth creation driven by government infrastructure spending tailwinds
- Compounded sales growth of 14% over 10 years indicates a steadily expanding loan book in line with rising railway capital expenditure budgets
- Debtor days at an extremely elevated 5,136 days indicate that receivables from Indian Railways take over 14 years to fully cycle, creating significant asset-liability management challenges
- Stock has declined 35% over the past 1 year, reflecting a sharp correction and potential re-rating concerns after the prior speculative run-up
- Low interest coverage ratio signals that a large portion of earnings is consumed by borrowing costs, leaving thin margins of safety in a rising rate environment
- Sales growth has decelerated to just 5% on a TTM and 3-year CAGR basis, down sharply from 14% over 10 years and 12% over 5 years, suggesting a growth slowdown
- ROE of 13% is modest for a financial services company and below the 15%+ threshold typically expected from high-quality NBFCs
- Potential capitalisation of interest costs raises concerns about the true profitability picture, as reported earnings may overstate economic returns
- The company operates with very high leverage inherent to its NBFC model, and while debt-to-equity data is unavailable, the low interest coverage ratio corroborates elevated balance sheet risk
- Apparently low tax rate may indicate reliance on specific exemptions or accounting treatments that could normalise adversely in future periods, compressing net margins
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 3h ago- ₹549 cr GST show cause notice Aug 24
IRFC received a show cause notice from GST Authority for excess input tax credit claimed in FY23, with total demand including interest and penalty at ₹549.32 crore.
- BSE, NSE fine for board gaps Aug 26
IRFC fined ₹13.72 lakh each by BSE and NSE for non-compliance with board composition norms for the quarter ended June 30, 2026, attributed to government appointment delays.
- Record net worth, zero NPA in Q1 Aug 15
IRFC delivered the strongest Q1FY27 quarter among railway stocks with a record net worth of ₹58,792 crore, zero NPA, and an attractive PE multiple of 16x versus peers like RVNL at 56x.
- Record revenue, PAT at 39th AGM Aug 25
CMD Manoj Kumar Dubey highlighted record revenue, PAT, and AUM for FY26 at the 39th AGM on Aug 25, reaffirming zero-NPA status and strong financial fundamentals.
- Best suited fundamentally per analysts Aug 15
Anand Rathi and SMC Global Securities noted IRFC shares are best suited for portfolios from a fundamental perspective, positioned as a sovereign-backed proxy for railway capex.
- Joint statutory auditors for FY27 Sep 10
IRFC appointed M/s GSA & Associates LLP and M/s K G R S & CO as joint statutory auditors for FY27 following C&AG intimation.
- Two independent directors appointed Aug 20
Pradeep Ahlawat and Manjula Mishra appointed as non-official independent directors effective August 20, 2026, addressing prior board composition gaps.
TL;DR: IRFC is executing well on fundamentals with record revenue, PAT, net worth of ₹58,792 crore, and a pristine zero-NPA book, trading at an attractive 16x PE versus railway peers. Key risks are the ₹549.32 crore GST show cause notice and governance lapses that drew exchange fines, though both appear manageable. The independent director appointments should resolve the board composition issue. Overall trend is positive with strong sovereign-backed fundamentals, but the GST demand warrants monitoring for any material financial impact.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,679 | 6,761 | 6,737 | 6,475 | 6,766 | 6,900 | 6,763 | 6,723 | 6,915 | 6,372 | 6,661 | 7,336 | 8,261 |
| Expenses | 29 | 34 | 35 | 34 | 33 | 38 | 39 | 44 | 47 | 49 | 104 | 118 | 42 |
| Financing Profit | 1,559 | 1,546 | 1,597 | 1,716 | 1,578 | 1,613 | 1,629 | 1,683 | 1,744 | 1,778 | 1,746 | 1,694 | 1,798 |
| Fin. Margin % | 23% | 23% | 24% | 26% | 23% | 23% | 24% | 25% | 25% | 28% | 26% | 23% | 22% |
| Other Income | 2 | 1 | 3 | 3 | 0 | 1 | 3 | 1 | 3 | 0 | 58 | -7 | 130 |
| Interest | 5,091 | 5,181 | 5,104 | 4,725 | 5,155 | 5,249 | 5,095 | 4,996 | 5,124 | 4,544 | 4,812 | 5,524 | 6,421 |
| Depreciation | 4 | 2 | 1 | 2 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 |
| PBT | 1,557 | 1,545 | 1,599 | 1,717 | 1,577 | 1,613 | 1,631 | 1,682 | 1,746 | 1,777 | 1,802 | 1,684 | 1,927 |
| Tax % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Profit | 1,557 | 1,545 | 1,599 | 1,717 | 1,577 | 1,613 | 1,631 | 1,682 | 1,746 | 1,777 | 1,802 | 1,684 | 1,927 |
| EPS in Rs | 1.19 | 1.18 | 1.22 | 1.31 | 1.21 | 1.23 | 1.25 | 1.29 | 1.34 | 1.36 | 1.38 | 1.29 | 1.47 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,939 | 7,507 | 9,047 | 9,267 | 11,134 | 13,421 | 15,771 | 20,299 | 23,892 | 26,650 | 27,153 | 27,285 | 28,630 |
| Expenses | 34 | 38 | 26 | 38 | 48 | 66 | 113 | 123 | 134 | 133 | 154 | 318 | 313 |
| Financing Profit | 1,914 | 1,950 | 2,133 | 2,592 | 2,902 | 3,192 | 4,420 | 6,102 | 6,310 | 6,415 | 6,504 | 6,962 | 7,016 |
| Fin. Margin % | 28% | 26% | 24% | 28% | 26% | 24% | 28% | 30% | 26% | 24% | 24% | 26% | 24% |
| Other Income | 1 | 1 | 0 | 1 | 0 | 0 | 0 | 2 | 41 | 6 | 4 | 53 | 181 |
| Interest | 4,992 | 5,519 | 6,888 | 6,638 | 8,183 | 10,163 | 11,237 | 14,075 | 17,447 | 20,101 | 20,495 | 20,005 | 21,302 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 14 | 14 | 9 | 5 | 6 | 6 |
| PBT | 1,914 | 1,950 | 2,133 | 2,592 | 2,902 | 3,192 | 4,416 | 6,090 | 6,337 | 6,412 | 6,502 | 7,009 | 7,191 |
| Tax % | 60% | 56% | 56% | 21% | 22% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
| Net Profit | 758 | 849 | 934 | 2,055 | 2,255 | 3,192 | 4,416 | 6,090 | 6,337 | 6,412 | 6,502 | 7,009 | 7,191 |
| EPS in Rs | 212 | 188 | 143 | 3.15 | 2.4 | 2.69 | 3.38 | 4.66 | 4.85 | 4.91 | 4.98 | 5.36 | 5.5 |
| Div. Payout % | 20% | 40% | 40% | 18% | 18% | 0% | 31% | 30% | 31% | 31% | 32% | 39% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 3,584 | 4,526 | 6,526 | 6,526 | 9,380 | 11,880 | 13,069 | 13,069 | 13,069 | 13,069 | 13,069 | 13,069 |
| Reserves | 5,098 | 6,999 | 5,483 | 7,402 | 15,648 | 18,419 | 22,845 | 27,928 | 32,402 | 36,110 | 39,599 | 43,680 |
| Borrowing | 71,270 | 87,503 | 1,06,395 | 1,34,006 | 1,73,933 | 2,34,377 | 3,23,145 | 3,88,440 | 4,18,935 | 4,12,039 | 4,12,133 | 4,36,471 |
| Other Liabilities | 7,696 | 9,372 | 11,245 | 13,534 | 7,642 | 10,828 | 21,423 | 20,544 | 26,742 | 23,865 | 24,034 | 23,457 |
| Total Liabilities | 87,647 | 1,08,400 | 1,29,650 | 1,61,468 | 2,06,604 | 2,75,504 | 3,80,482 | 4,49,980 | 4,91,147 | 4,85,082 | 4,88,835 | 5,16,676 |
| Fixed Assets | 12 | 12 | 12 | 11 | 11 | 11 | 45 | 38 | 19 | 22 | 18 | 18 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 4 | 10 |
| Investments | 9 | 8 | 8 | 14 | 13 | 12 | 12 | 10 | 14 | 54 | 38 | 28 |
| Other Assets | 87,626 | 1,08,381 | 1,29,630 | 1,61,443 | 2,06,579 | 2,75,482 | 3,80,424 | 4,49,932 | 4,91,114 | 4,85,003 | 4,88,775 | 5,16,620 |
| Total Assets | 87,647 | 1,08,400 | 1,29,650 | 1,61,468 | 2,06,604 | 2,75,504 | 3,80,482 | 4,49,980 | 4,91,147 | 4,85,082 | 4,88,835 | 5,16,676 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | -16,378 | -19,455 | -28,076 | -41,748 | -62,701 | -89,907 | -64,412 | -28,584 | 7,914 | 8,230 | -27,026 |
| Investing | — | 2 | 2 | 2 | 1 | 1 | 0 | -5 | 0 | -8 | 0 | -3 |
| Financing | — | 17,582 | 18,250 | 28,075 | 41,749 | 62,697 | 90,202 | 64,266 | 28,643 | -8,046 | -2,572 | 21,560 |
| Net Cash Flow | — | 1,206 | -1,204 | 0 | 3 | -2 | 296 | -151 | 60 | -140 | 5,658 | -5,469 |
| Free Cash Flow | — | -16,378 | -19,455 | -28,076 | -41,749 | -62,701 | -89,907 | -64,419 | -28,585 | 7,906 | 8,229 | -27,030 |
| CFO/OP | — | -213 | -211 | -298 | -371 | -465 | -572 | -319 | -120 | 30 | 31 | -100 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 9% | 8% | 8% | 16% | 12% | 12% | 13% | 16% | 15% | 14% | 13% | 13% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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53 extracted metrics + investor summaries across FY15–FY26.
Documents
Frequently Asked Questions about IRFC
What does Indian Railway Finance Corporation Ltd do?
Where is Indian Railway Finance Corporation Ltd (IRFC) listed?
Which sector does Indian Railway Finance Corporation Ltd belong to?
What is the market capitalisation of Indian Railway Finance Corporation Ltd?
What is the PE ratio of Indian Railway Finance Corporation Ltd?
What is the 52-week high and low of Indian Railway Finance Corporation Ltd?
Does Indian Railway Finance Corporation Ltd pay dividends?
What is the Return on Equity (ROE) of Indian Railway Finance Corporation Ltd?
Company Information
Incorporated in 1986, Indian Railway Finance Corporation borrows funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways as finance lease[1]
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