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Indian Railway Finance Corp. Ltd.
(IRFC)
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Rating:53Neutral
Price Target:
₹90.00
▲(2.72% Upside)
Action:Reiterated
Date:05/15/26
The score is primarily held back by high leverage and uneven cash flow quality despite strong reported profitability. Technicals add caution with the price below key moving averages and weak momentum. Valuation and a modest dividend yield provide partial support but do not fully offset the balance-sheet and cash-generation risks.
Positive Factors
Government-backed, dedicated financing role
IRFC’s explicit role as the dedicated financing arm for Indian Railways creates a durable, government-linked business model. This close relationship drives predictable long-tenor funding demand tied to Indian Railways’ capex plans, supporting stable contract pipelines and lower counterparty risk versus typical commercial lenders.
Negative Factors
Very high leverage and rising debt
Extremely elevated leverage materially increases refinancing, interest-rate and liquidity risk for a credit-focused NBFC. Large and rising borrowings amplify sensitivity to market funding conditions, limit balance-sheet flexibility, and raise the chance that adverse rate or access shocks will pressure spreads and solvency metrics over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Government-backed, dedicated financing role
IRFC’s explicit role as the dedicated financing arm for Indian Railways creates a durable, government-linked business model. This close relationship drives predictable long-tenor funding demand tied to Indian Railways’ capex plans, supporting stable contract pipelines and lower counterparty risk versus typical commercial lenders.
Read all positive factors
Indian Railway Finance Corp. Ltd. (IRFC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.17T
Dividend Yield2.35%
Average Volume (3M)706.29K
Price to Earnings (P/E)16.2
Beta (1Y)1.58
Revenue Growth5.50%
EPS Growth7.79%
CountryIN
Employees59
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)5.50
Shares Outstanding13,068,506,000
10 Day Avg. Volume630,644
30 Day Avg. Volume706,290
Financial Highlights & Ratios
PEG Ratio2.13
Price to Book (P/B)2.01
Price to Sales (P/S)4.17
P/FCF Ratio28.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Indian Railway Finance Corp. Ltd. Business Overview & Revenue Model
Company Description
Indian Railway Finance Corporation Limited is an Indian financial institution that secures capital from financial markets. Its primary purpose is to fund the procurement and development of critical assets, which are subsequently leased to Indian R...
How the Company Makes Money
IRFC primarily makes money through interest and lease-related income earned on funds it lends or effectively leases to Indian Railways, funded by IRFC’s own borrowings.
Key revenue drivers and mechanics:
1) Spread-based income (core model): IRFC ...
Indian Railway Finance Corp. Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 287.49B | 273.38B | 270.65B | 265.30B | 236.51B | 202.80B |
| Gross Profit | 138.57B | 73.21B | 146.01B | 122.01B | 113.26B | 117.06B |
| EBITDA | 72.34B | 70.15B | 144.99B | 121.44B | 112.95B | 115.64B |
| Net Income | 71.91B | 70.09B | 65.02B | 64.12B | 61.67B | 60.90B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 5.17T | 4.89T | 4.85T | 4.91T | 4.50T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 9.78B | 61.43B | 6.00B | 6.74B | 8.92B |
| Total Debt | 0.00 | 4.36T | 4.12T | 4.12T | 4.19T | 3.88T |
| Total Liabilities | -567.49B | 4.60T | 4.36T | 4.36T | 4.46T | 4.09T |
| Stockholders Equity | 567.49B | 567.49B | 526.68B | 491.79B | 446.80B | 409.96B |
Cash Flow | ||||||
| Free Cash Flow | 6.77B | 40.42B | 82.29B | 79.06B | -285.89B | -644.19B |
| Operating Cash Flow | 6.90B | 40.56B | 82.30B | 79.14B | -285.88B | -644.12B |
| Investing Cash Flow | -288.88B | -307.81B | -1.00M | -75.40M | 910.00K | -47.19M |
| Financing Cash Flow | 285.35B | 215.60B | -25.72B | -80.46B | 286.44B | 642.66B |
Indian Railway Finance Corp. Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹982.98B | 6.14 | ― | 5.42% | 0.21% | -4.87% | |
66 Neutral | ₹1.40T | 5.41 | ― | 4.62% | 5.79% | 12.66% | |
64 Neutral | ₹390.57B | 9.18 | ― | 2.92% | 21.01% | 53.00% | |
61 Neutral | ₹335.98B | 17.85 | ― | 0.50% | 22.85% | 6.16% | |
61 Neutral | ₹17.77B | 7.99 | ― | ― | -22.40% | -27.87% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ₹1.17T | 16.21 | ― | 2.40% | 5.50% | 7.79% |
* General Sector Average
IN:IRFC
Indian Railway Finance Corp. Ltd.
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Indian Railway Finance Corp. Ltd. Corporate Events
IRFC Files Newspaper Publication Disclosures with NSE and BSE
Aug 2, 2026
Indian Railway Finance Corporation Ltd. has notified the stock exchanges that it has published mandatory disclosures in both English and Hindi newspapers in line with Regulation 47 of the SEBI Listing Obligations and Disclosure Requirements Regula...
Madras High Court Sets Aside ₹353 Crore Tax Demand Against IRFC for Fresh Review
Jul 30, 2026
Indian Railway Finance Corporation Limited has disclosed that the High Court of Judicature at Madras has set aside an earlier order and recovery notice issued by the Assistant Commissioner (State Tax), Chennai, relating to a demand of ₹353.1...
Government to Offload IRFC Stake via Two-Day Offer for Sale
Jun 23, 2026
The Government of India, acting through the Ministry of Railways, plans to divest up to 130,685,060 equity shares of Indian Railway Finance Corporation via an offer for sale on stock exchanges at a floor price of ₹91 per share. The sale wind...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.