DBT Bureau
Pune, 19 Jan 2026
Indian Railway Finance Corporation (IRFC), a Navratna CPSE under the Ministry of Railways, reported its highest-ever profit for the third consecutive quarter, delivering double-digit growth in profitability and a sustained improvement in margins, even as the full-year sanction guidance of ₹ 60,000 crore was already achieved by the end of the third quarter.
| Period | Profit After Tax (₹ crore) | YoY Growth (%) | Comparison |
|---|---|---|---|
| Q3 FY26 (Quarter ended Dec 31, 2025) | 1,802.19 | 10.52% | Highest-ever quarterly PAT |
| 9M FY26 (Nine months ended Dec 31, 2025) | 5,324.86 | 10.47% | vs ₹4,820.13 crore in 9M FY25 |
Net Interest Margin (NIM) for the quarter improved by over 8% on a year-on-year basis, supported by value-accretive disbursements in diversified segments and disciplined liability management under IRFC 2.0. Total income for the quarter stood at ₹ 6,719.23 crore, while income for the nine-month period was ₹ 20,009.38 crore, driven by diversification-led business development. A marginal year-on-year moderation in quarterly income was largely on account of a one-year extension of a moratorium granted by the Ministry of Railways for a project lease agreement, impacting revenue recognition during the period.
Commenting on the results, Manoj Kumar Dubey, Chairman and Managing Director of IRFC, said, “The quarter reflects strong execution under IRFC 2.0. Our Q3 performance demonstrates the resilience of IRFC’s business model and the effectiveness of diversification across both core railway financing and allied infrastructure segments. Importantly, we have already achieved our annual sanction guidance of ₹ 60,000 crore within nine months itself, which underlines the robustness of our pipeline and the speed of execution.”
A key operational highlight during the quarter was IRFC achieving its entire annual sanction target well ahead of schedule, at a time when railway-linked infrastructure activity continues to accelerate. The Corporation’s ₹30,000 crore disbursement target for the year remains on track, with nearly three-fourths of the amount already disbursed by the end of Q3. Dubey also highlighted IRFC’s ₹9,821 crore refinancing of DFCCIL’s World Bank loan, describing it as a strategically significant transaction.
“By replacing foreign currency exposure with rupee financing, we were able to generate meaningful savings and mitigate risk for a nationally important railway project. This transaction establishes a scalable refinancing template that can be replicated across other large railway and railway-linked infrastructure projects,” he said.
IRFC’s Assets Under Management (AUM) rose to a record ₹4.75 lakh crore as of December 31, 2025, the highest in its history, driven by diversification initiatives under IRFC 2.0 despite no fresh business from Indian Railways during the period. The company reported its highest-ever net worth of ₹56,625.41 crore and an annualised EPS of ₹5.43. IRFC strengthened its funding profile by securing a JPY 46.458 billion (about USD 300 million) External Commercial Borrowing from Sumitomo Mitsui Banking Corporation and by issuing Zero-Coupon (Deep Discount) Bonds. The corporation maintained a zero NPA status and received its fifth consecutive “Excellent” performance rating from the Department of Public Enterprises. Looking ahead, IRFC expects higher-margin diversified lending and new Indian Railways project agreements to support growth from the next financial year, while exploring opportunities in metro rail, renewable energy, logistics and ports.
