HDFC Bank Limited
NSE: HDFCBANK
Financial Services · Banks - Regional
₹692.80 last close on 30 Oct 2026 +1.39%
Research updated
Indian Railway Finance Corporation Ltd.
NSE: IRFCFinancial ServicesCredit Services
- Last close
- ₹73.37
- Day change
- −₹2.34 (−3.09%)vs
- Market cap
- ₹1.04 lakh crIndian rupees
- Research updated
- 5 reports
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About Indian Railway Finance Corporation
Indian Railway Finance Corporation Ltd. is a public financial institution dedicated to supporting the funding requirements of the Indian Railways. Established in 1986, its primary function is to finance the acquisition of rolling stock assets and the development of infrastructure projects within the railway network. As a key player in the transportation finance sector, Indian Railway Finance Corporation Ltd. supports the modernization and expansion efforts of one of the world's largest and busiest rail networks. Through raising funds via bonds and other financial instruments in both domestic and international markets, it plays an instrumental role in facilitating efficient capital allocation. The corporation's operations have a significant impact on the infrastructure industry, ensuring sustainable growth and improvements in the railway sector. This strategic financial support fosters advancements that enhance efficiency and service quality, bolstering the overall economic development of India by maintaining a robust and responsive public transportation system.
- Sector
- Financial Services
- Industry
- Credit Services
- Listing
- NSE: IRFC
- Chief executive
- Mr. Manoj Kumar Dubey
- Employees
- 45
- Headquarters
- New Delhi, India
- ISIN
- INE053F01010
- Website
- irfc.co.in
Public research · Report of
Business model & financial foundation
IRFC (NSE: IRFC), Government-owned infrastructure finance (NBFC-IFC), dedicated borrowing arm of Indian Railways: revenue of ₹27,284 crore in FY26 (+0.5% on FY25) and net profit of ₹7,009 crore.
- Revenue, FY26 (₹ crore)
- 27,284
- consolidated
- Revenue growth, FY26
- +0.5%
- on FY25
- Net profit, FY26 (₹ crore)
- 7,009
- to owners
- Return on equity, FY26
- 12.8%
- on average equity
- Market capitalisation (₹ crore)
- 1,04,221
- at the close of 15 Oct 2026
Company profile
IRFC is the dedicated market-borrowing arm of the Ministry of Railways, registered with the RBI as an NBFC-Infrastructure Finance Company. It raises bonds, term loans and ECBs and finances rolling stock and project assets that it leases to MoR on cost-plus standard lease agreements, earning a thin spread (about 35-40bp) with nil NPAs. Since FY24 MoR has funded capex from the budget, so IRFC is diversifying (IRFC 2.0) into railway-linked power, renewables, metros and ports at 100-120bp margins; non-MoR loans were 7.5% of AUM at Q1 FY27.
| Item | Value |
|---|---|
| Legal name | Indian Railway Finance Corporation Limited |
| Exchange and ticker | NSE: IRFC; BSE: 543257 |
| ISIN | INE053F01010 |
| Sector | Financial Services |
| Industry | Government-owned infrastructure finance (NBFC-IFC), dedicated borrowing arm of Indian Railways |
| Headquarters | New Delhi, India |
| Fiscal year end | March |
| Reporting basis and unit | standalone, in ₹ crore |
| Auditor | O.P. Totla & Company and KGRS & Co. (joint, CAG-appointed) for FY26; GSA & Associates LLP and KGRS & Co. for FY27 |
| Market capitalisation | ₹1,04,221 crore (15 Oct 2026) |
| Shares outstanding | 1,307 crore shares (FY26) |
| Price | ₹79.75 (close, 15 Oct 2026) |
| 52-week range | ₹74.06 - ₹137.2 (to 15 Oct 2026) |
| Website | https://irfc.co.in |
Corporate structure and shareholding
Parent: Government of India (Ministry of Railways), 82.90% at 30 Sep 2026 after the Feb and Jun 2026 OFSs.
No subsidiary is recorded.
No subsidiaries, associates or joint ventures; MoR is both majority owner and principal lessee.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 86.36% | 84.65% | 82.90% | 82.90% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 0.98% | 1.17% | 1.18% | |
| Domestic institutions | 1.55% | 2.89% | 3.97% | |
| of which mutual funds | 0.36% | 0.27% | 0.30% | |
| Retail | 9.51% | 9.68% | 10.10% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
IRFC is the Ministry of Railways’ market-borrowing arm and an RBI NBFC-IFC. Its core income is cost-plus lease finance to MoR; its diversification option is loans to railway-linked power, metro, renewable and logistics assets. At Q1 FY27, 92.43% of AUM remained MoR exposure.
| Peer | Why the dossier compares them |
|---|---|
| Power Finance Corporation (PFC) | Government-owned Maharatna infra lender at thin spreads to a state-prioritised sector; closest listed analogue |
| REC Limited (RECLTD) | Government-owned power-sector lender (PFC subsidiary), same funding model and ownership |
| Indian Renewable Energy Development Agency (IREDA) | Government-owned NBFC-IFC lending to renewables, an IRFC 2.0 target sector |
| Housing and Urban Development Corporation (HUDCO) | Government-owned infra lender to state and urban agencies, overlapping metro/urban transport targets |
| Rail Vikas Nigam (RVNL) | MoR-owned railway-ecosystem PSU; IRFC borrower and rail-capex sentiment proxy |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 20,280 | 23,651 | 26,649 | 27,152 | 27,284 |
| Cost of revenue (vendor classification) * | 8,574 | 12,324 | 14,330 | 20,509 | 9,356 |
| Other operating costs (vendor classification) * | 110.6 | 123.7 | 125.3 | 145.4 | 169.1 |
| EBITDA (vendor classification) * | 11,565 | 11,292 | 12,140 | 6,504 | 17,752 |
| EBIT * | 11,550 | 11,281 | 12,135 | 6,498 | 17,622 |
| Finance costs | 5,460 | 5,114 | 20,101 | 20,495 | 20,005 |
| Profit before tax | 6,090 | 6,167 | 6,412 | 6,502 | 7,009 |
| Tax expense | 0.32 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | 6,090 | 6,167 | 6,412 | 6,502 | 7,009 |
| Diluted EPS (INR) | 4.66 | 4.72 | 4.91 | 4.98 | 5.36 |
| Interest income | 8,824 | 7,720 | 9,540 | ||
| Lease income (incl. pre-commencement lease interest) | 17,821 | 19,427 | 17,726 | ||
| Other income incl. dividend | 11.3 | 3.55 | 53.4 | ||
| Impairment on financial instruments | -3.93 | 0.68 | 124.0 | ||
| Employee benefit expense | 11.2 | 13.5 | 21.3 | ||
| Depreciation and amortisation | 9.44 | 5.31 | 6.05 | ||
| Other expenses | 125.7 | 139.8 | 172.3 | ||
| Profit after tax to owners | 6,412 | 6,502 | 7,009 | ||
| Net interest income (revenue from operations less finance cost) | 6,547 | 6,657 | 7,279 | ||
| Operating expenses (employee + depreciation + other expenses) | 146.3 | 158.6 | 199.6 | ||
| Impairment on financial instruments (provisions) | -3.93 | 0.68 | 124.0 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity * | 40,376 | 44,680 | 49,179 | 52,668 | 56,749 |
| Borrowings * | 3,88,440 | 4,18,935 | 4,12,039 | 4,12,133 | 4,36,471 |
| Cash and cash equivalents * | 106.4 | 162.6 | 22.8 | 5,680 | 211.3 |
| Trade payables * | 0.00 | 9,534 | 10,181 | 10,812 | 11,473 |
| Net property, plant and equipment * | 22.4 | 5.28 | 6.25 | 16.9 | 18.0 |
| Total assets * | 4,49,360 | 4,90,359 | 4,85,082 | 4,88,835 | 5,16,676 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operations * | -64,720 | -28,912 | 7,821 | 8,230 | -27,026 |
| Free cash flow (vendor definition) * | -64,419 | -28,589 | 7,906 | 8,229 | -27,040 |
| Dividends paid (the provider's sign: an outflow is negative) * | -1,006 | -1,869 | -1,960 | -3,006 | -2,744 |
| Capital expenditure (the provider's sign: an outflow is negative) * | -6.63 | -0.76 | -8.32 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Equity shares outstanding (crore) | 1,307 | 1,307 | 1,307 | 1,307 | 1,307 |
| Quarterly profit and loss (₹ crore) | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 6,763 | 6,724 | 6,915 | 6,372 | 6,661 | 7,336 | 8,261 | 7,866 |
| Cost of revenue (vendor classification) * | 5,099 | 5,001 | 5,128 | 4,817 | 5,531 | 6,426 | ||
| Other operating costs (vendor classification) * | 35.7 | 36.6 | 43.1 | 39.2 | 56.5 | 38.0 | ||
| EBITDA (vendor classification) * | 1,629 | 1,689 | 1,744 | 1,864 | 1,803 | 1,796 | ||
| EBIT * | 1,628 | 1,684 | 1,743 | 1,803 | 1,746 | 1,796 | ||
| Profit before tax | 1,631 | 1,682 | 1,746 | 1,777 | 1,802 | 1,684 | 1,927 | 1,958 |
| Tax expense | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Profit after tax | 1,631 | 1,682 | 1,746 | 1,777 | 1,802 | 1,684 | 1,927 | 1,958 |
| Diluted EPS (₹) | 1.25 | 1.29 | 1.34 | 1.36 | 1.38 | 1.29 | 1.47 | 1.50 |
| Interest income | 2,011 | 1,970 | 1,497 | 2,829 | 2,311 | 2,902 | 1,148 | |
| Lease income (incl. pre-commencement lease interest) | 4,753 | 4,749 | 5,404 | 3,543 | 4,346 | 4,434 | 7,094 | |
| Other income incl. dividend | 2.96 | -0.34 | 2.86 | 0.02 | 57.9 | -7.37 | 130.2 | 58.1 |
| Finance costs | 5,095 | 4,996 | 5,124 | 4,544 | 4,812 | 5,524 | 6,421 | 5,917 |
| Impairment on financial instruments (credit cost) | 0.46 | 3.38 | 6.10 | 4.02 | 59.1 | 54.8 | -1.09 | |
| Employee benefit expense | 3.64 | 4.33 | 3.70 | 5.58 | 5.29 | 6.71 | 5.07 | |
| Depreciation and amortisation | 1.34 | 1.29 | 1.33 | 1.35 | 1.43 | 1.94 | 1.15 | |
| Other expenses | 35.2 | 36.6 | 37.0 | 39.6 | 39.2 | 56.5 | 38.0 | |
| Profit attributable to owners | 1,631 | 1,682 | 1,746 | 1,777 | 1,802 | 1,684 | 1,927 | 1,958 |
| Net interest income (revenue from operations less finance cost) | 1,668 | 1,727 | 1,791 | 1,827 | 1,849 | 1,811 | 1,840 | 1,949 |
| Operating expenses (employee + depreciation + other expenses) | 40.2 | 42.2 | 42.1 | 46.5 | 45.9 | 65.2 | 44.2 | |
| Impairment on financial instruments (provisions) | 0.46 | 3.38 | 6.10 | 4.02 | 59.1 | 54.8 | -1.09 | |
| Total income | 7,924 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 28.8% | 16.6% | 12.7% | 1.9% | 0.5% |
| Net margin | 24.1% | 23.9% | 25.7% | ||
| Return on equity | 13.7% | 12.8% | 12.8% | ||
| Return on assets | 1.3% | 1.3% | 1.4% | ||
| Dividend payout | 30.6% | 46.2% | 39.2% | ||
| EPS, diluted (₹) | 4.66 | 4.72 | 4.91 | 4.98 | 5.36 |
| Book value per share (₹) | 30.90 | 34.19 | 37.63 | 40.30 | 43.42 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS (INR)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 5, information to 15 Oct 2026); market data at the close of 15 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Indian Railway Finance Corporation includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Indian Railway Finance Corporation
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Prices are the last close on the NSE, 30 Oct 2026. Research from Mool’s report of 15 Oct 2026; page updated 2 Nov 2026.
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