Indian Railway Finance Corporation (IRFC) announced strong Q2 FY2025-26 results, with a PAT of nearly INR 1,780 crores, marking over 10% growth. H1 profit touched INR 3,523 crores. Net worth reached a record of over INR 56,000 crores, with an EPS of INR 5.39. AUM showed an upward trend. New business agreements increased nine-fold, with nearly INR 45,000 crores in H1 for sectors like renewable energy and transmission. Interim dividend declared at INR 1.05 paisa per share.
Financial Performance
In Q2 FY25-26, IRFC delivered a PAT of nearly INR 1,780 crores, a growth of over 10%. The profit for the first half of the year (H1) reached INR 3,523 crores, the highest ever in IRFC’s history. The company’s net worth has reached a record level of over INR 56,000 crores, resulting in an EPS of INR 5.39.
Diversification & New Business
IRFC has successfully showcased the benefits of strategic diversification, even without new allocations from Indian Railways for the third consecutive year. New business agreements have seen a nine-fold increase. Agreements worth INR 36,000 crores were signed in just four days (September 26-29), contributing to a total of nearly INR 45,000 crores in H1. These agreements span sectors like renewable energy, transmission, coal mining, and industrial infrastructure.
Improved Margins
The company’s Net Interest Margin (NIM) has improved to 1.55% by the end of H1, compared to 1.42% in the last financial year. This reflects the positive impact of diversification efforts and investments in assets with better margins.
Dividend Announcement
The Board has declared an interim dividend of INR 1.05 paisa per share, demonstrating a commitment to rewarding shareholders.
Zero NPA Record
IRFC maintains a zero Non-Performing Asset (NPA) record, even with the new business ventures. This underscores the company’s resilience, risk discipline, and trustworthiness.
Future Outlook
In the coming quarters, IRFC plans to expand its footprint in sectors like renewable energy, logistics, and ports. The company is prepared to contribute to India’s infrastructure development, keeping the railway sector at its core. The company expects asset and PAT growth. They are targetting double-digit growth.
Source: BSE
