Indian Railway Finance Corporation (IRFC) announced unaudited financial results for Q2 and H1 ended September 30, 2025, reporting a record profit and double-digit growth driven by strategic diversification and improved Net Interest Margins (NIMs). Total income stood at INR 6,371.91 crores and INR 13,290.15 crores for the quarter and half-year, respectively. The company continues to strengthen its position in railway infrastructure financing.
Financial Highlights
Indian Railway Finance Corporation (IRFC) showcased strong financial performance for the quarter and half-year ended September 30, 2025. Key highlights include:
- Total income for Q2 FY26: INR 6,371.91 crores
- Total income for H1 FY26: INR 13,290.15 crores
- Profit After Tax (PAT) for H1 FY26: INR 3,522.67 crores, a 10.45% increase year-over-year
- Earnings Per Share (EPS): INR 5.39 (annualized)
Strategic Diversification
The company’s performance was driven by its strategic diversification initiatives. New business segments have contributed to improved margins and profitability. As of September 30, 2025, Assets Under Management (AUM) stood at INR 4.62 lakh crores.
New Business Agreements
IRFC sanctioned and executed new business agreements totaling INR 45,382 crore during the first half of the year. These agreements span railway-linked sectors, including:
- Power generation (including renewable energy)
- Energy transmission
- Coal mining
- Industrial infrastructure
This represents a ninefold increase from the INR 5,250 crore executed in the preceding financial year.
Improved Net Interest Margins (NIMs)
The new transactions have resulted in improved Net Interest Margins (NIMs), now at 1.55% (annualized). This improvement is reflected in the double-digit PAT growth and is expected to strengthen further.
Dividend Declaration
The Board of Directors declared an interim dividend of INR 1.05 per share, demonstrating its commitment to delivering value to shareholders.
Management Commentary
Shri Manoj Kumar Dubey, Chairman and Managing Director of IRFC, stated that the company’s financial performance reaffirms its resilience and operational strength. He noted that the diversification strategy has yielded tangible results and that IRFC continues to play a key role in enabling railway-linked infrastructure growth.
Future Outlook
With strategic diversification gaining momentum, IRFC is well-positioned to expand its asset base and sustain upward trajectory in Net Interest Margins (NIMs). The company aims to further strengthen its position as a leading strategic infrastructure financier.
Source: BSE
