Indian Railway Finance Corporation (IRFC) shares had a turbulent run on Monday after the Navratna PSU reported a double‑digit jump in quarterly profit and the highest assets under management (AUM) in its history for the December quarter of FY2026.
The Q3 numbers, however, reinforced the broader market narrative of IRFC as a steady railway‑financing play, even as revenue growth moderated slightly.
Ideally, the stock should have shown gains, but Monday’s bear run led by ICICI Bank, Reliance Industries, Infosys, TCS, and HDFC Bank dampened overall investor confidence.
IRFC shares closed at Rs 120.90 apiece, down 1.06 per cent despite hitting a Rs 122.65 high in intraday trade.
Strong profit growth in Q3
This time the PAT (profit after tax) jumped 10.52 per cent to Rs 1,802.19 crore, from ₹1,630.66 crore in the same quarter a year ago. This marked the company’s highest‑ever quarterly profit and the third consecutive quarter of record earnings.
Total income for the quarter stood at Rs 6,719.23 crore, marginally lower than Rs 6,766.39 crore a year earlier.
Net profit rose despite this flat top line because finance costs, credit provisions and operating expenses remained well contained, lifting margins.
Margins, NIM and balance sheet
Q3 net interest margin (NIM) improved by a little over 8 per cent year‑on‑year, helped by what the company calls “value‑accretive” disbursements and tighter liability management under its “IRFC 2.0” strategy.
Operating profit margin for the quarter was 26.18 per cent, compared with 24.07 per cent a year earlier, while net profit margin improved to 26.82 per cent from 24.10 per cent.
IRFC’s net worth climbed to a record Rs 56,625.41 crore as of December 31, 2025, up roughly 8.8 per cent from Rs 52,046.26 crore a year earlier. Assets under management (measured through loans and lease receivables) rose to about Rs 4.75 lakh crore, also the highest in the company’s history, supported by diversification beyond core rolling‑stock funding.
Growth outlook
The railway-linked PSU said it already met its full‑year sanction guidance of Rs 60,000 crore within the first nine months of FY2026, signalling a strong pipeline of future disbursements.
Its Rs 30,000‑crore disbursement target is also on track, with about three‑fourths of that amount already deployed by the end of Q3.[
Management highlighted a Rs 9,821‑crore rupee refinancing of DFCCIL’s World Bank loan as a key transaction that reduces foreign currency risk on a major rail corridor and can be used as a template for other projects.
IRFC continued to report zero non‑performing assets and retained the highest domestic credit ratings (AAA/Stable) from multiple agencies.
