Business

IIE DIGITAL DESK ; July 30 : The Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, has reported a strong financial performance for the first quarter of the financial year 2026-27, with its net profit increasing by more than 10% year-on-year. The company also recorded its highest-ever quarterly revenue and strengthened its financial position during the period.

According to a regulatory filing submitted on Thursday, July 30, IRFC's consolidated net profit rose 10.40% to ₹1,927 crore for the quarter ended June 30, 2026. The company had reported a profit after tax of ₹1,745.69 crore during the corresponding quarter of the previous financial year.

The railway financing company's revenue from operations witnessed significant growth during the quarter, rising 19.46% to ₹8,261.11 crore compared with ₹6,915 crore recorded in the same period last year. The increase in revenue reflects the company's continued growth momentum and strong performance in financing railway infrastructure projects.

IRFC also achieved a major milestone in terms of its financial strength, with its net worth reaching a record ₹58,791.95 crore as of June 30, 2026. This marks an increase from ₹56,748.76 crore as of March 31, 2026, representing the highest-ever net worth recorded by the corporation since its inception.

The company attributed the rise in net worth to consistent profitability, retained earnings, and disciplined financial management. The improvement highlights IRFC's ability to maintain stable growth while continuing its role as a key financial partner for the expansion and modernization of Indian Railways.

During the first quarter of FY27, IRFC's Net Interest Margin (NIM) stood at 1.48% on an annualised basis, reflecting stable lending performance. The company's Assets Under Management (AUM) stood at ₹4.79 lakh crore as of June 30, 2026, compared with ₹4.85 lakh crore as of March 31, 2026.

IRFC continued to maintain its strong asset quality with a zero Non-Performing Assets (NPA) record, ensuring a clean loan portfolio. The company reiterated that maintaining a high-quality asset book and following a prudent risk management approach remain central to its business strategy.

Commenting on the quarterly performance, Manoj Kumar Dubey, Chairman and Managing Director of IRFC, said that the first quarter of FY2026-27 marked a strong beginning for the company, with IRFC achieving its highest-ever quarterly revenue, profitability, and net worth.

Dubey highlighted that the results demonstrate the strength of IRFC's diversification strategy under "IRFC 2.0" and reaffirm the company's commitment to maintaining a zero-NPA loan portfolio. He added that the corporation would continue expanding its presence across mobility and other allied sectors connected with railways, in line with a broader government approach towards integrated infrastructure development.

The company stated that its future growth strategy will focus on diversification, which is expected to improve profitability and strengthen financial performance throughout FY27. IRFC also emphasized that it will continue following a disciplined risk framework while maintaining its record of zero NPAs.

The railway financier has been playing a crucial role in funding the expansion of railway infrastructure, including locomotives, rolling stock, and other assets required for the growth of the national transportation network. With increasing investments in railway modernization and infrastructure development, IRFC is expected to remain a key financial institution supporting India's rail growth plans.

Following the announcement of the quarterly results, shares of IRFC witnessed mild pressure in the stock market. The company's shares were trading 0.4% lower at ₹88.77 apiece on the National Stock Exchange (NSE) at 2:49 p.m.

The latest results indicate that IRFC continues to maintain steady financial growth while strengthening its position as a dedicated financing institution for Indian Railways. The company's focus on diversification, asset quality, and sustainable profitability is expected to remain central to its growth strategy in the coming quarters.