Indian Railway Finance Corporation (IRFC) Q4 25/26 earnings summary

Executive summary

• Achieved record-high PAT of ₹7,009.17 crore for FY26, up 7.8% year-over-year, with net worth rising to over ₹56,000 crore and total assets surpassing ₹5 lakh crore for the first time.

• Successfully diversified beyond Indian Railways, sanctioning ₹74,000 crore of assets and disbursing ₹35,000 crore, with AUM growing to ₹4.85 lakh crore and a target to cross ₹5 lakh crore in FY 2027.

• Maintained zero NPA status and AAA/Stable credit ratings, reflecting strong asset quality and prudent risk management.

Financial highlights

• Revenue from operations for FY26 was ₹27,284.15 crore, with PAT exceeding ₹7,000 crore and net worth reaching ₹56,748.76 crore.

• Q4 PAT was flat due to higher provisions and CSR expenses, but revenue grew 9% year-over-year.

• NIM improved to 1.50%, with new business yielding margins of 100-120 bps, compared to 35-40 bps from legacy railway business.

• EPS for FY26 was ₹5.36, and total comprehensive income stood at ₹6,824.46 crore.

Outlook and guidance

• Management targets double-digit growth in top line, bottom line, EPS, and NIM for FY 2027, with benchmarks set at ₹75,000 crore in sanctions and ₹35,000 crore in disbursements.

• AUM expected to cross ₹5 lakh crore in H1 FY 2027, with continued diversification aiming for a 60:40 mix between railway and non-railway business over 3-5 years.

• Anticipates further growth from a robust pipeline in metro, ports, and other infrastructure sectors, with expectations of improved spreads and margins.