Hot Pursuit
15-Oct-2025 15:05
IRFC Q2 PAT rises 10% YoY to Rs 1,777 cr
However, total revenue from operations declined 7.64% year-on-year (YoY) to Rs 6,371.89 crore in the quarter ended 30 September 2025.
Profit before tax stood at Rs 1,776.98 crore in Q2 FY26, up 10.19% from Rs 1,612.65 crore recorded in the same period a year ago.
On a half year basis, the company's standalone net profit jumped 10.44% to Rs 3,522.67 crore despite 2.62% to Rs 13,287.27 crore in H1 FY26 over H1 FY25.
The company's strong performance highlights the success of its strategic diversification efforts, with newly developed business segments significantly contributing to improved margins and overall profitability.
Assets Under Management (AUM) have shown a continued upward trajectory, reaching Rs 4.62 lakh crore. Notably, this growth was achieved despite the absence of new mandates from Indian Railways and no existing project pipeline in recent years'underscoring the effectiveness of proactive business development initiatives executed during the first half of the year.
The corporation also reported its highest-ever net worth of Rs 56,193.85 crore and an annualised earnings per share (EPS) of Rs 5.39 per share marking key financial milestones and reinforcing the strength of its operational strategy.
During the first half of the year, IRFC sanctioned and executed new business agreements totaling Rs 3,45,382 crore across a range of railway-linked sectors, including power generation (with a strong emphasis on renewable energy), energy transmission, coal mining, and industrial infrastructure. This marks a ninefold increase compared to Rs 5,250 crore executed in the previous financial year'highlighting a significant scale-up in business development and diversification.
These transactions were concluded at competitive yet value-accretive spreads, resulting in a notable improvement in Net Interest Margins (NIMs), which now stand at 1.55% (annualized). This positive margin trend is already reflected in double-digit growth in Profit After Tax (PAT) and is expected to further strengthen in the coming quarters as the diversified asset portfolio continues to mature and yield returns.
The Board of Directors has declared the highest-ever interim dividend of Rs 1.05 per share, reaffirming the company's commitment to delivering sustained value to its shareholders and reflecting strong financial performance and confidence in future growth.
The company stated that with strategic diversification gaining traction, IRFC is poised to expand its asset base in the second half of FY26. The newly added business lines are expected to drive sustained growth, improve Net interest margins (NIMS), and enhance profitability. As these segments mature, they are likely to strengthen IRFC's position as a leading infrastructure financier in the country.
Indian Railway Finance Corp.'s principal business is to borrow funds from the financial markets to finance. The Government of India held an 86.36% stake in the company as of 30 June 2025.
The scrip rose 0.08% to Rs 124.60 on the BSE.
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