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

• Market Cap: ₹1.60T
• Dividend Yield: 1.55%
• Average Volume (3M): 706.29K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.62
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹128.00 ▲(7.47% Upside)

The overall stock score of 61 reflects strong profitability and efficient cost management, but is tempered by declining revenue growth, high leverage, and negative cash flow trends. Technical indicators suggest bearish momentum, and the valuation appears stretched with a high P/E ratio. The absence of earnings call data and corporate events limits additional insights.

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: 119.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 119.1 is below the 20-day moving average (MA) of 121.92, below the 50-day MA of 123.66, and below the 200-day MA of 127.61, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 37.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.60 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	₹976.27B	5.66	―	5.50%	18.51%	16.04%
PFC	72 Outperform	₹1.31T	5.38	―	4.27%	13.05%	16.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BAJAJHFL	62 Neutral	₹879.89B	37.26	―	―	―	―
IRFC	61 Neutral	₹1.60T	23.36	―	1.55%	-0.41%	4.98%
LICHSGFIN	55 Neutral	₹315.65B	5.72	―	1.83%	4.79%	13.08%
IFCI	52 Neutral	₹151.47B	47.22	―	―	-12.62%	175.71%

Indian Railway Finance Corp. Ltd. Corporate Events

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.

IRFC Board Meeting to Consider Financial Results and Interim Dividend

Indian Railway Finance Corporation Limited has announced that its Board of Directors will meet on October 15, 2025, to consider and approve the unaudited financial results for the quarter and half-year ended September 30, 2025. The Board will also deliberate on the declaration of an interim dividend for the financial year 2025-26, with the record date set for October 24, 2025. The announcement impacts shareholders as the trading window remains closed until 48 hours after the board meeting, and shareholders are reminded to update their tax information to avoid higher tax deductions on dividends. This move reflects IRFC’s ongoing commitment to maintaining transparency and shareholder value, while also aligning with regulatory requirements.