Indian Railway Finance Corporation (IRFC), the financial arm of Indian Railways, reported a 2% decline in its net profit for Q4 FY25, while revenue grew by 4%. The company also outlined plans to raise ₹60,000 crore for FY26 through various borrowing methods, aiming to support future operations and funding requirements.
Indian Railway Finance Corporation (IRFC), the financial subsidiary of Indian Railways responsible for financing railway infrastructure, reported its Q4 results for FY25. The company revealed a 2% decline in its net profit for the quarter, alongside a 4% year-on-year growth in its revenue.
IRFC’s net profit for the fourth quarter of FY25 stood at ₹1,681.87 crore, down 2.1% compared to ₹1,717.32 crore reported during the same period last year. Despite the dip in profit, the company saw an increase in revenue from operations, which rose by 3.8% to ₹6,722.83 crore from ₹6,474.58 crore YoY.
FY26 Borrowing Plans
Looking ahead, IRFC’s board of directors has approved a strategic plan to raise up to ₹60,000 crore in funds for FY26. This amount will be sourced from both domestic and international markets, with IRFC exploring various financial instruments including tax-free bonds, taxable bonds, government-backed bonds, and ESG bonds. The company also plans to utilize loans from banks, securitization of future lease receivables, and other financing avenues to meet the funding needs of Indian Railways.
The funds raised will be utilized for a variety of purposes, including supporting Indian Railways’ operational requirements, business expansion, refinancing of loans, and meeting other corporate obligations.
IRFC Stock Performance
As of April 28, 2025, IRFC’s share price has witnessed a notable dip. The stock has fallen 8% in the last three months and is down 16% year-to-date. Despite these recent setbacks, IRFC’s stock has delivered impressive long-term returns, having surged 300% in the past two years and 465% over three years.
At 2:15 PM on April 28, 2025, IRFC shares were trading 1.09% lower at ₹127.30 on the Bombay Stock Exchange (BSE).
