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Indian Railway Finance Corporation PAT Surges with Strategic Diversification

Indian Railway Finance Corporation (IRFC) reported a robust performance with record Profit After Tax (PAT) driven by strategic diversification. For the quarter ended September 30, 2025, total income reached INR 6,371.91 crores. PAT increased to INR 3,522.67 crores, a 10.45% increase year-over-year. New business agreements aggregating ₹45,382 crore were sanctioned, signaling strong growth beyond traditional railway-linked sectors.

Financial Highlights

Indian Railway Finance Corporation (IRFC) announced strong unaudited financial results for the quarter and half-year ended September 30, 2025. Key highlights include:

Strategic Diversification

IRFC’s strong performance is attributed to its successful strategic diversification into new business segments. The company has expanded beyond its traditional railway-linked sectors, contributing to improved margins and profitability.

Assets Under Management

The Corporation’s Assets Under Management (AUM) reached INR 4.62 lakh crores. This growth was achieved despite the absence of new business from Indian Railways and no existing pipeline over the preceding years, driven by proactive business development initiatives.

Key Financial Ratios

Other noteworthy achievements during the period include:

Business Growth and Expansion

IRFC sanctioned and executed new business agreements aggregating ₹45,382 crore across various sectors, including:

These sanctions represent a ninefold increase compared to the ₹5,250 crore executed in the preceding financial year.

Net Interest Margins

The company’s Net Interest Margins (NIMs) have shown a notable improvement, now standing at 1.55% (annualized). The transactions were concluded at competitive yet value-accretive spreads, contributing to double-digit PAT growth.

Interim Dividend

The Board of Directors declared an interim dividend of ₹1.05 per share, reflecting the company’s commitment to delivering value to shareholders.

Source: BSE

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