- Key Financial Results
- Operational and Financial Strength
- Other Key Updates
- Risks and Constraints
Indian Railway Finance Corporation (IRFC) shared its financial results for the quarter ended 30 June 2025. This was the company’s best quarterly performance so far. IRFC reported its highest ever income and profit for any quarter.
The company plays a key role in financing Indian Railways. It remains fully owned and supported by the Government of India.
Key Financial Results
- In Q1 FY26, IRFC reported a total income of ₹6,918.24 crore. This is higher than ₹6,766.03 crore in Q1 FY25. The income also grew compared to ₹6,723.80 crore in Q4 FY25.
- Net profit for the quarter stood at ₹1,745.69 crore. This is an increase from ₹1,576.83 crore in the same quarter last year. It also grew from ₹1,681.87 crore in the previous quarter.
- Net interest margin (annualised) was 1.53 percent. This is the highest reported in the last three years.
- The company’s net worth increased to ₹54,423.96 crore as of 30 June 2025. This was ₹50,772.21 crore a year ago.
- Debt-to-equity ratio improved to 7.44 times from 8.02 times in Q1 FY25.
- Earnings per share rose to ₹1.34 compared to ₹1.21 in Q1 FY25.
Operational and Financial Strength
- IRFC has no non-performing assets. Its loan book remains fully clean. The company maintains low operating costs, which supports its profit margins.
- It continues to hold AAA/Stable credit ratings from leading agencies.
- As of 30 June 2025, the company had total assets of ₹4,80,742.87 crore.
- Book value per share was ₹41.65.
- Government holding in the company remains at 86.36 percent.
Other Key Updates
- The company has recently received Navratna status. This gives it more operational and financial independence.
- In Q1, IRFC raised ₹12,000 crore through bonds. All funds raised were used for their intended purpose. There was no deviation.
- Net cash flow from operations was ₹1,467.53 crore. Cash from financing activities was negative due to repayments. The quarter ended with cash and equivalents of ₹172.48 crore.
- There were no pending investor complaints as of 30 June 2025.
- The company has no subsidiaries or associate companies.
Risks and Constraints
The debt-equity ratio, though improved, remains high. This means the company is sensitive to changes in interest rates or refinancing conditions. IRFC is fully dependent on Indian Railways for its business. It does not lend to other sectors. This limits diversification. The company may also be affected by changes in financial markets or government policy.|
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