Indian Railway Finance Corp. Ltd. (IN:IRFC)
:IRFC
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Indian Railway Finance Corp. Ltd.
(IRFC)
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Rating:53Neutral
Price Target:
₹100.00
▼(-25.09% Downside)
Action:ReiteratedDate: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
Captive financing model for Indian Railways
Being the government-owned, dedicated financing vehicle for Indian Railways creates durable, contract-backed revenue streams. Long-term lease/finance arrangements provide predictable cash flows, structural demand for funding rolling stock, and scale access to domestic and international capital markets, supporting steady operations over months to years.
Negative Factors
Very high leverage
Extremely high debt relative to equity materially increases refinancing and interest-rate sensitivity. This limits financial flexibility, amplifies earnings volatility from funding-cost moves, and raises refinancing risk for a capital-intensive financier, constraining durable capacity to absorb macro shocks or higher rates.
Read all positive and negative factors
Positive Factors
Negative Factors
Captive financing model for Indian Railways
Being the government-owned, dedicated financing vehicle for Indian Railways creates durable, contract-backed revenue streams. Long-term lease/finance arrangements provide predictable cash flows, structural demand for funding rolling stock, and scale access to domestic and international capital markets, supporting steady operations over months to years.
Read all positive factors
Indian Railway Finance Corp. Ltd. (IRFC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.29T
Dividend Yield1.52%
Average Volume (3M)706.29K
Price to Earnings (P/E)22.6
Beta (1Y)1.69
Revenue Growth-0.41%
EPS Growth4.98%
CountryIN
Employees42
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.38
Shares Outstanding13,068,506,000
10 Day Avg. Volume630,644
30 Day Avg. Volume706,290
Financial Highlights & Ratios
PEG Ratio17.52
Price to Book (P/B)3.08
Price to Sales (P/S)6.00
P/FCF Ratio19.73
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)6.9
Revenue Forecast (FY)₹91.87B
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...
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 ...
Indian Railway Finance Corp. Ltd. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
46
Neutral
Cash Flow
57
Neutral
| 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 | 150.42B | 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
Negative
133.50
Price Trends
103.49
Negative
110.70
Negative
118.33
Negative
Market Momentum
-1.75
Negative
54.76
Neutral
91.63
Negative
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 95.00, above the 50-day MA of 103.49, and above the 200-day MA of 118.33, indicating a neutral trend. The MACD of -1.75 indicates Negative momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 91.63 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹920.97B | 5.80 | ― | 5.56% | 18.51% | 16.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | ₹1.41T | 4.66 | ― | 4.62% | 13.05% | 16.78% | |
56 Neutral | ₹716.08B | 29.54 | ― | ― | ― | ― | |
55 Neutral | ₹154.33B | -220.42 | ― | ― | -12.62% | 175.71% | |
55 Neutral | ₹292.25B | 5.31 | ― | 1.87% | 4.79% | 13.08% | |
53 Neutral | ₹1.29T | 22.58 | ― | 1.52% | -0.41% | 4.98% |
* Financial Sector Average
IN:IRFC
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-17.69%
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Indian Railway Finance Corp. Ltd. Corporate Events
IRFC seals Rs 12,842 crore refinancing deal for HURL to advance whole-of-government financing push
Mar 23, 2026
Indian Railway Finance Corporation has signed a major rupee term loan agreement with Hindustan Urvarak and Rasayan for refinancing up to Rs 12,842 crore of HURL’s existing long-term debt. The deal aligns with IRFC’s IRFC 2.0 strategy t...
IRFC Signs Tripartite MoU to Finance Outer Harbour Project at Tuticorin Port
Feb 3, 2026
Indian Railway Finance Corporation has entered into a tripartite memorandum of understanding with V.O. Chidambaranar Port Authority and Sagarmala Finance Corporation to jointly finance large-scale port and multimodal infrastructure projects, begin...
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.
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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.