New Delhi: Indian Railway Finance Corporation Limited (IRFC), a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Railways, has announced its unaudited standalone financial results for the quarter ended June 30, 2026.
The company reported its strongest-ever quarterly performance, with record-high total income, net worth and profit after tax (PAT). IRFC also maintained its track record of zero non-performing assets (NPAs) while continuing to expand its lending portfolio and diversify into mobility and allied sectors linked to the railway ecosystem.
IRFC Q1 FY27 Financial Performance
IRFC reported strong growth across key financial parameters during the first quarter of FY27.
- Total Income: ₹8,391.34 crore, up 21.29% YoY from ₹6,918.24 crore
- Revenue from Operations: ₹8,261.11 crore, up 19.45% YoY from ₹6,915.38 crore
- Profit Before Tax: ₹1,927.21 crore, up 10.40% YoY from ₹1,745.69 crore
- Profit After Tax: ₹1,927.21 crore, up 10.40% YoY from ₹1,745.69 crore
- Total Comprehensive Income: ₹2,043.19 crore, up 16.29% YoY from ₹1,756.96 crore
- Basic EPS: ₹1.47, up 9.70% YoY from ₹1.34
The company said the quarter marked its highest-ever quarterly total income and PAT, reflecting continued momentum in its financial performance.
Read also: IRFC Appoints Deepa Kotnis as CFO Effective June 30, 2026 to Strengthen Financial Leadership
IRFC Net Worth Reaches Record ₹58,792 Crore
IRFC’s net worth reached its highest-ever level since inception during Q1 FY27.
Key financial metrics include:
- Net Worth: ₹58,791.95 crore, compared with ₹54,423.96 crore in Q1 FY26
- Other Equity: ₹45,723.44 crore, compared with ₹41,355.45 crore in Q1 FY26
- Annualised Net Interest Margin (NIM): 1.48%
- Assets Under Management (AUM): ₹4.79 lakh crore
- Debt-Equity Ratio: 7.43 times, compared with 7.44 times in Q1 FY26
- Government Shareholding: 82.90%, compared with 86.36% in Q1 FY26
IRFC’s AUM stood at ₹4.79 lakh crore as of June 30, 2026, compared with ₹4.85 lakh crore at the end of March 2026.
The company’s debt-equity ratio also improved marginally to 7.43 times from 7.69 times at the end of FY26.
Lease Income Drives Revenue Growth
The company’s revenue growth during Q1 FY27 was primarily driven by a significant increase in lease income.
- Interest Income: ₹1,147.56 crore, down 23.37% YoY from ₹1,497.32 crore
- Lease Income: ₹7,094.47 crore, up 31.29% YoY from ₹5,403.75 crore
- Other Operating Income: ₹19.08 crore, up 33.33% YoY from ₹14.31 crore
- Revenue from Operations: ₹8,261.11 crore, up 19.45% YoY from ₹6,915.38 crore
While interest income declined during the quarter, the strong rise in lease income supported overall revenue growth.
IRFC Maintains Zero-NPA Track Record
IRFC continued to maintain its zero non-performing assets (NPA) track record during Q1 FY27.
The company said it has maintained a clean loan book while expanding its diversified lending portfolio.
The company’s annualised Net Interest Margin stood at 1.48%, reflecting the benefits of its diversification strategy and disciplined liability management.
The company is continuing to implement its IRFC 2.0 strategy, which focuses on expanding its presence beyond traditional railway financing and exploring opportunities in mobility and allied sectors with backward and forward linkages to the railways.
Lease Receivables of ₹1.64 Lakh Crore Recognised
IRFC recognised lease receivables amounting to ₹1,64,768.83 crore for Project EBR IF 2019-20, 2020-21 and EBR_S.
The recognition was effective from March 24, 2026.
The development forms part of IRFC’s continued role in financing railway infrastructure and supporting capital expenditure related to the Indian Railways ecosystem.
Government Shareholding Falls to 82.90% After OFS
The Government of India reduced its stake in IRFC through an Offer for Sale (OFS) conducted on June 24 and 25, 2026.
The key details include:
- Government stake sold: 1.75%
- Current government shareholding: 82.90%
- Previous shareholding: 84.65%
The government’s stake in the company stood at 82.90% as of June 30, 2026.
IRFC Receives AAA/Stable Credit Ratings
IRFC continues to maintain strong credit ratings from major rating agencies.
CRISIL, ICRA and CARE have maintained AAA/Stable ratings for the company.
The ratings reflect IRFC’s strong financial position and its strategic importance as a financing arm associated with the Indian Railways ecosystem.
Investor Complaints Resolved During Q1 FY27
IRFC reported that it received a total of 432 investor complaints during the quarter.
The company reported:
- Total complaints received: 432
- Complaints pending at quarter-end: Nil
- Complaints received from SEBI: 3
- SEBI complaints resolved: All 3
The company said there were no pending investor complaints at the end of the quarter.
Auditors Flag Board Composition Compliance Issues
The statutory auditors highlighted certain compliance-related observations concerning the composition of IRFC’s Board and key committees as of June 30, 2026.
According to the auditors, the composition of the following bodies was not in compliance with applicable provisions:
- Board of Directors
- Audit Committee
- Nomination and Remuneration Committee
- Stakeholders’ Relationship Committee
- Risk Management Committee
The observations relate to provisions under the Companies Act, 2015, SEBI LODR Regulations and Department of Public Enterprises guidelines.
However, the auditors clarified that these observations did not modify their audit conclusion on the financial results.
IRFC Management Highlights Diversification Strategy
Manoj Kumar Dubey, Chairman and Managing Director of IRFC, attributed the company’s Q1 FY27 performance to the strength of its diversification strategy and disciplined liability management.
He said the first quarter of FY27 marked a strong start to the year, with IRFC recording its highest-ever quarterly revenue, net worth and profitability.
IRFC Outlook: Focus on Mobility and Allied Sectors
Going forward, IRFC expects its diversification strategy to continue supporting improved spreads and profitability.
The company’s key focus areas include:
- Expanding its presence in mobility sectors
- Exploring opportunities in allied sectors linked to railways
- Maintaining a zero-NPA track record
- Following a prudent risk management framework
- Strengthening its diversified lending portfolio
- Continuing its contribution to infrastructure development and nation-building
The company expects its growing pipeline of opportunities in mobility and allied sectors to support its long-term growth strategy.
About Indian Railway Finance Corporation
Indian Railway Finance Corporation (IRFC) is a public sector enterprise under the Ministry of Railways and serves as the primary financing arm of Indian Railways. It is responsible for mobilising financial resources from domestic and international markets to fund railway infrastructure expansion and rolling stock procurement, playing a crucial role in supporting the development and modernisation of India’s rail network.
