Indian Railway Finance Corp. Ltd. (IRFC) AI Stock Analysis

• Market Cap: ₹1.59T
• Dividend Yield: 1.52%
• Average Volume (3M): 706.29K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.55
• Revenue Growth: -0.41%
• EPS Growth: 4.98%
• Country: IN
• Employees: 42
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.36
• Shares Outstanding: 13,068,506,000
• 10 Day Avg. Volume: 630,644
• 30 Day Avg. Volume: 706,290
• PEG Ratio: 17.52
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 5.98
• P/FCF Ratio: 19.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹144.00 ▲(7.87% Upside)

The score is driven primarily by solid profitability, but is held back by high leverage and weakening revenue/free-cash-flow growth. Technicals are supportive with a clear uptrend, though overbought signals raise near-term risk. Valuation is not especially cheap (P/E 23.22) and the dividend yield (~1.39%) is modest.

Positive Factors

Profitability

Strong profitability with a high net profit margin indicates efficient operations and cost management, supporting long-term financial health.

Cash Generation

Strong cash generation relative to net income suggests robust operational efficiency, providing liquidity for growth and debt servicing.

Government Backing

Government backing provides stability and continuous demand, reinforcing IRFC's market position and long-term revenue prospects.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting long-term stability and investment capacity.

Revenue Decline

Declining revenue growth may signal challenges in market expansion or demand, affecting future profitability and growth potential.

Negative Free Cash Flow Growth

Declining free cash flow growth suggests potential challenges in maintaining liquidity, which could affect investment and debt repayment.

Indian Railway Finance Corp. Ltd. Business Overview & Revenue Model

Company Description

Indian Railway Finance Corporation Limited operates as a financing company in India. The company engages in borrowing funds from the financial markets to finance the acquisition/creation of assets that are leased out to the Indian Railways as finance lease. It also operates as a non-deposit taking non-banking financial and infrastructure finance company. The company was incorporated in 1986 and is based in New Delhi, India.

How the Company Makes Money

IRFC generates revenue primarily through interest income from loans provided to the Indian Railways and other associated entities for capital projects. The company raises funds by issuing bonds in the domestic and international capital markets, which are then used to finance railway projects. Additionally, IRFC earns income through fees for financial services and consultancy related to project financing. The strong backing of the Indian government and the strategic importance of the railways in the national economy ensure a steady demand for IRFC's financial products. Furthermore, IRFC's partnerships with various governmental and financial institutions enhance its ability to raise capital and provide competitive financing solutions, contributing to its overall earnings.

Indian Railway Finance Corp. Ltd. Financial Statement Overview

Summary

Indian Railway Finance Corp. Ltd. demonstrates strong profitability with a consistent net profit margin and improved gross profit margin. However, challenges include declining revenue growth and high leverage, which could pose risks to financial stability. The negative growth in free cash flow also requires attention.

Income Statement

The income statement shows strong profitability with a consistent net profit margin of around 30% in TTM. However, the revenue growth rate is negative at -2.37% for TTM, indicating a decline in revenue. The gross profit margin has improved to 30.58% in TTM from 24.53% in the previous annual report, showing efficiency in cost management. Overall, the company maintains solid profitability despite the revenue decline.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 7.44 in TTM, indicating significant leverage, which is a potential risk. However, the return on equity is stable at 12.67%, reflecting efficient use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing. The company should focus on reducing leverage to improve financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -8.83% in TTM, which is concerning. The operating cash flow to net income ratio is very high, indicating strong cash generation relative to net income. However, the negative growth in free cash flow suggests potential challenges in maintaining cash flow stability. The company needs to address the declining cash flow trend.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	266.73B	270.65B	265.30B	236.51B	202.80B	157.51B
Gross Profit	149.45B	146.01B	122.01B	113.26B	117.06B	105.33B
EBITDA	148.73B	144.99B	121.44B	112.95B	115.64B	103.81B
Net Income	68.35B	65.02B	64.12B	61.67B	60.90B	44.16B
Balance Sheet
Total Assets	5.04T	4.89T	4.85T	4.91T	4.50T	3.80T
Cash, Cash Equivalents and Short-Term Investments	193.46B	61.43B	6.00B	6.74B	8.92B	6.80B
Total Debt	4.08T	4.12T	4.12T	4.19T	3.88T	3.23T
Total Liabilities	4.48T	4.36T	4.36T	4.46T	4.09T	3.45T
Stockholders Equity	561.94B	526.68B	491.79B	446.80B	409.96B	359.13B
Cash Flow
Free Cash Flow	45.60B	82.29B	79.06B	-285.89B	-644.19B	-899.08B
Operating Cash Flow	45.61B	82.30B	79.14B	-285.88B	-644.12B	-899.07B
Investing Cash Flow	-8.91B	-1.00M	-75.40M	910.00K	-47.19M	4.23M
Financing Cash Flow	31.43B	-25.72B	-80.46B	286.44B	642.66B	902.02B

Indian Railway Finance Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 133.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRFC, the sentiment is Negative. The current price of 133.5 is above the 20-day moving average (MA) of 121.31, above the 50-day MA of 119.70, and above the 200-day MA of 126.79, indicating a neutral trend. The MACD of 2.20 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 17.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IRFC.

Indian Railway Finance Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RECLTD	75 Outperform	₹957.44B	5.56	―	5.56%	18.51%	16.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IRFC	66 Neutral	₹1.59T	23.19	―	1.52%	-0.41%	4.98%
PFC	65 Neutral	₹1.18T	4.79	―	4.62%	13.05%	16.78%
BAJAJHFL	56 Neutral	₹780.16B	33.03	―	―	―	―
LICHSGFIN	55 Neutral	₹290.60B	5.26	―	1.87%	4.79%	13.08%
IFCI	45 Neutral	₹132.02B	34.88	―	―	-12.62%	175.71%

Indian Railway Finance Corp. Ltd. Corporate Events

IRFC Secures Fifth Straight ‘Excellent’ DPE Rating, Hits FY26 Sanction Target Early

IRFC has received an “Excellent” rating from the Department of Public Enterprises for the financial year 2024–25, marking its fifth consecutive top performance rating since listing in 2020–21, underscoring strong governance, operational efficiency and financial discipline. The company has continued to diversify and strengthen its lending portfolio within its expanded mandate, improving efficiencies in railway-linked infrastructure financing and providing timely, cost-effective funding to the broader railway ecosystem and related sectors. Under its IRFC 2.0 strategy, management is prioritising selective deployment of capital into high-quality, mandate-aligned assets and has already met its annual sanction guidance of ₹60,000 crore for FY 2025–26 by the end of the third quarter, signalling strong growth momentum and sustained support for national infrastructure development.

IRFC Shuts Trading Window Ahead of December-Quarter Results

Indian Railway Finance Corporation Ltd. has announced the closure of its trading window for equity shares and listed debt securities from 1 January 2026 until 48 hours after the Board meeting that will consider and approve the financial results for the quarter and nine months ended 31 December 2025. In line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, designated employees and connected persons are barred from trading in the company’s securities during this period, underscoring IRFC’s compliance focus and its efforts to maintain transparency and prevent insider trading ahead of key financial disclosures.

IRFC Appoints New Joint Statutory Auditors for 2025-26

Indian Railway Finance Corporation Limited has announced a change in its auditors, appointing M/s O P Totla & Co and M/s KGRS & Co as joint statutory auditors for the financial year 2025-26. This change, approved by the Comptroller and Auditor General of India, is part of the company’s compliance with regulatory requirements and aims to ensure robust financial auditing practices. The appointment of these firms, both with extensive experience in audit and advisory services, is expected to enhance the company’s financial oversight and maintain transparency, benefiting stakeholders and reinforcing IRFC’s commitment to high standards of corporate governance.

IRFC Enhances Transparency with Post-Results Call Recording

Indian Railway Finance Corporation Limited announced that it has uploaded the audio recording of its post-results conference call with analysts and investors on its website. This move is in line with regulatory requirements and aims to enhance transparency and communication with stakeholders by providing them access to detailed discussions on the company’s financial performance.

IRFC Publishes Financial Results for September 2025 Quarter

Indian Railway Finance Corporation Limited has announced the publication of its financial results for the quarter and half-year ended September 30, 2025, in compliance with SEBI’s listing regulations. This announcement is significant as it provides stakeholders with insights into the company’s financial health and performance, which could impact its operations and industry positioning.