Mumbai: Indian Railway Finance Corporation Ltd. (IRFC), a Navratna public sector enterprise under the Ministry of Railways, has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, reporting its highest-ever quarterly profit. The results reflect strong operational execution under its ‘IRFC 2.0’ strategy, disciplined financial management, and successful diversification into allied infrastructure segments.
Strong Quarterly Performance
IRFC recorded a Profit After Tax (PAT) of ₹1,802.19 crore in Q3 FY26, marking a 10.52% increase Year-on-Year (YoY) over ₹1,630.66 crore in Q3 FY25.
Other key highlights include:
- Net Interest Margin (NIM): Improved over 8% YoY.
- Assets Under Management (AUM): Reached an all-time high of ₹4.75 lakh crore.
- Net Worth: Touched a record ₹56,625.41 crore.
- Revenue: Slight dip of 1.5% to ₹6,661 crore against ₹6,763 crore in Q3 FY25.
- Other Income: Rose sharply to ₹58 crore from ₹3 crore YoY.
- Earnings Per Share (EPS): Increased to ₹1.38 from ₹1.25 per share.
The nine-month cumulative PAT stood at ₹5,324.86 crore, reflecting a 10.47% growth over the same period last year, while total income was ₹20,009.38 crore.
Read also: IRFC Rated “Excellent” by DPE for Fifth Consecutive Year, Signals Strong Institutional Performance
Asset Quality and Operational Strength
IRFC maintained its zero Non-Performing Asset (NPA) record, highlighting strong asset quality.
- AUM Growth: Driven by disciplined lending and diversification.
- Sanction Achievement: IRFC achieved its annual sanction guidance of ₹60,000 crore within nine months of FY26.
- Disbursement Progress: Nearly three-fourths of the annual target of ₹30,000 crore disbursed by Q3-end.
A major operational highlight was the ₹9,821 crore refinancing of DFCCIL’s World Bank loan, which replaced foreign currency exposure with rupee financing, generating cost savings and mitigating risk for a critical national project.
Funding and Strategic Initiatives
During Q3 FY26, IRFC strengthened its funding profile through:
- USD 300 million External Commercial Borrowing (ECB) facility from Sumitomo Mitsui Banking Corporation.
- Fundraising via Zero-Coupon Bonds.
These measures complement IRFC’s focus on diversification across core railway financing and allied sectors, including metro rail, renewable energy, and ports.
The corporation also received its fifth consecutive “Excellent” performance rating from the Department of Public Enterprises (DPE), reflecting strong governance and execution.
Digital and Financial Outlook
Chairman and Managing Director Manoj Kumar Dubey stated, “Our Q3 performance demonstrates the resilience of IRFC’s business model and the effectiveness of diversification under IRFC 2.0. Achieving the annual sanction guidance within nine months underscores the robustness of our pipeline and speed of execution.”
Looking ahead, IRFC aims to expand co-financing with multilateral agencies, refinance rail-linked projects, and leverage higher-margin diversified lending to further strengthen its financial profile in FY27.
About Indian Railway Finance Corporation (IRFC)
Indian Railway Finance Corporation Ltd. (IRFC) is a Navratna public sector enterprise under the Ministry of Railways, dedicated to financing Indian Railways’ rolling stock, infrastructure, and allied projects. With a strong track record in financial performance and risk management, IRFC plays a pivotal role in supporting India’s national transport infrastructure while expanding into metro, renewable energy, and port-related financing.
Read also: IRFC Sanctions ₹9,821 Crore Loan to DFCCIL to Refinance World Bank Debt for Eastern Freight Corridor
