IRFC FY26 Profit Rises 8% To ₹7,009 Crore, Q4 Revenue Climbs 10% On Diversification Push

Mumbai: Indian Railway Finance Corporation (IRFC) reported a 7.8 percent rise in profit after tax to Rs 7,009.17 crore for FY26, while revenue from operations for the March quarter increased 10 percent sequentially to Rs 7,335.75 crore.

The Navratna railway financing company posted quarterly profit of Rs 1,684.31 crore in Q4 FY26 compared with Rs 1,802.19 crore in the preceding quarter and Rs 1,681.87 crore in the year-ago period, reflecting stable annual profitability despite moderation in quarterly earnings.

IRFC’s total revenue from operations rose to Rs 27,284.15 crore in FY26 from Rs 27,152.14 crore in FY25. During the March quarter, interest income stood at Rs 2,901.93 crore while lease income came in at Rs 4,433.82 crore.

Profit before tax for the quarter was Rs 1,684.31 crore against Rs 1,802.19 crore in Q3 FY26. Earnings per share remained stable year-on-year at Rs 1.29, though lower than Rs 1.38 reported in the December quarter.

Sequentially, finance costs increased to Rs 5,524.43 crore in Q4 from Rs 4,812.02 crore in the previous quarter, while impairment on financial instruments stood at Rs 54.77 crore.

Other comprehensive income declined during the quarter due to fair value adjustments and foreign currency borrowing impacts. Despite this, IRFC maintained healthy margins and reported a net worth of Rs 56,748.76 crore as of March 31, 2026, compared with Rs 52,667.77 crore a year ago.

The company said FY26 marked its first full year of strategic diversification beyond traditional railway financing. Assets under management crossed Rs 4.85 lakh crore during the year, while total assets exceeded Rs 5 lakh crore for the first time.

IRFC sanctioned projects worth Rs 72,949 crore and disbursed nearly Rs 35,067 crore during FY26, expanding into sectors such as renewable energy, power transmission and railway-linked infrastructure.

According to the company’s press release, diversification-led growth helped improve spreads and increase net interest margin to 1.50 percent during FY26.

IRFC also retained its zero-NPA status while executing major refinancing transactions, including a Rs 9,821 crore facility for DFCCIL and a Rs 12,842 crore refinancing deal for Hindustan Urvarak & Rasayan Ltd.

Disclaimer: This report is based on audited standalone FY26 financial results and does not constitute investment advice.