IRFC shares rise 4% after Q1 profit rises 11% YoY to record Rs 1,746 crore

Shares of Indian Railway Finance Corporation (IRFC) rose 3.9% to their intraday high of Rs 135.90 on the BSE on Wednesday after the company reported its highest-ever quarterly net profit and total income in Q1FY26. The state-run lender posted a profit after tax (PAT) of Rs 1,746 crore, up 11% from Rs 1,577 crore in the same quarter last year.

Revenue from operations rose 2% year-on-year to Rs 6,915 crore, compared with Rs 6,766 crore in Q1FY25. On a sequential basis, PAT rose 3.8% from Rs 1,682 crore in Q4FY25, while revenue grew 2.8% over Rs 6,723 crore reported in the previous quarter.

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Total income for the June quarter stood at Rs 6,918 crore, including other income of Rs 2.86 crore—also the highest quarterly income recorded in IRFC's history.

Net interest margin improved to 1.53% on an annualised basis, marking the best level in the past three years. IRFC’s net worth rose to Rs 54,424 crore, also a record high, while its book value per share reached Rs 41.65.

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The company reported a further improvement in its debt-to-equity ratio to 7.44, reflecting a stronger balance sheet. It also maintained one of the lowest overhead costs in the industry and continued its streak of zero non-performing assets (NPAs).

IRFC Chairman and Managing Director Manoj Kumar Dubey said the results reflect the robustness of the firm’s financial strategy and its central role in financing Indian Railways' infrastructure push.

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“As the sector undergoes unprecedented transformation, we are committed to driving financial innovation and maintaining operational excellence,” Dubey said. “Our zero NPA record, low cost of capital, and stable cash flows continue to set us apart in the NBFC space.”

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