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

• Market Cap: ₹1.21T
• Dividend Yield: 1.52%
• Average Volume (3M): 706.29K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.70
• Revenue Growth: -0.41%
• EPS Growth: 4.98%
• Country: IN
• Employees: 42
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.38
• 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): 6.00
• 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: 53 Neutral
• Price Target: ₹97.00 ▼(-27.34% Downside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is held back primarily by balance-sheet risk (very high leverage) and weak technicals (below major moving averages with subdued momentum). Strong profitability and improved recent cash flow provide support, while valuation appears moderate with a modest dividend yield.

Positive Factors

Dedicated financing arm for Indian Railways

IRFC's role as the government-owned, dedicated financier for Indian Railways creates a stable, predictable funding pipeline. Long-term lease/finance contracts with a sovereign counterparty underpin recurring cashflows and reduce commercial risk, supporting durable revenue visibility and asset deployment.

Negative Factors

Very high leverage

A debt-to-equity ratio above 7x materially increases refinancing needs and interest-rate exposure. Even with solid ROE and equity growth, such leverage limits strategic options, magnifies earnings sensitivity to rate moves, and raises refinancing risk across the 2–6 month horizon.

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 fina...

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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 fina...

How the Company Makes Money

IRFC primarily makes money through a spread-based financing model tied to funding Indian Railways’ asset needs. (1) Lease/finance income from Indian Railways: IRFC borrows money (via bonds/notes, bank loans, and other market instruments) and uses ...

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IRFC primarily makes money through a spread-based financing model tied to funding Indian Railways’ asset needs. (1) Lease/finance income from Indian Railways: IRFC borrows money (via bonds/notes, bank loans, and other market instruments) and uses ...

Indian Railway Finance Corp. Ltd. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	265.66B	270.65B	265.30B	236.51B	202.80B	157.51B
Gross Profit	151.20B	146.01B	122.01B	113.26B	117.06B	105.33B
EBITDA	151.38B	144.99B	121.44B	112.95B	115.64B	103.81B
Net Income	70.07B	65.02B	64.12B	61.67B	60.90B	44.16B
Balance Sheet
Total Assets	4.98T	4.89T	4.85T	4.91T	4.50T	3.80T
Cash, Cash Equivalents and Short-Term Investments	6.83B	61.43B	6.00B	6.74B	8.92B	6.80B
Total Debt	4.18T	4.12T	4.12T	4.19T	3.88T	3.23T
Total Liabilities	4.42T	4.36T	4.36T	4.46T	4.09T	3.45T
Stockholders Equity	566.25B	526.68B	491.79B	446.80B	409.96B	359.13B
Cash Flow
Free Cash Flow	54.25B	82.29B	79.06B	-285.89B	-644.19B	-899.08B
Operating Cash Flow	54.29B	82.30B	79.14B	-285.88B	-644.12B	-899.07B
Investing Cash Flow	-154.81B	-1.00M	-75.40M	910.00K	-47.19M	4.23M
Financing Cash Flow	102.44B	-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: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 97.44, above the 50-day MA of 107.75, and above the 200-day MA of 120.36, indicating a bearish trend. The MACD of -4.15 indicates Negative momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 30.51 is Neutral, 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	₹838.68B	5.80	―	5.56%	18.51%	16.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFC	65 Neutral	₹1.31T	4.66	―	4.62%	13.05%	16.78%
BAJAJHFL	56 Neutral	₹631.42B	29.54	―	―	―	―
IFCI	55 Neutral	₹137.60B	-220.42	―	―	-12.62%	175.71%
LICHSGFIN	55 Neutral	₹278.44B	5.31	―	1.87%	4.79%	13.08%
IRFC	53 Neutral	₹1.21T	22.58	―	1.52%	-0.41%	4.98%

Indian Railway Finance Corp. Ltd. Corporate Events