IRFC Q4 Highlights: Net Profit Dips 2% to ₹1,682 Crore, Revenue Climbs 4% YoY, and ₹60,000 Crore Fundraising Approved for FY26

The Indian Railway Finance Corporation (IRFC) recently unveiled its financial results for the fourth quarter of FY25, revealing a slight dip in net profit despite a growth in revenue. This state-owned entity reported a net profit of ₹1,681.87 crore, which is a 2.1% decrease from ₹1,717.32 crore in the same quarter last year. However, IRFC’s revenue from operations saw a 3.8% increase, climbing to ₹6,722.83 crore compared to ₹6,474.58 crore year-on-year.

FY26 Borrowing Initiatives

In addition to its financial results, IRFC’s board has approved an ambitious borrowing plan for FY26, aiming to raise up to ₹60,000 crore. This capital will be sourced from both domestic and international markets, utilizing a diverse range of financial instruments. The plan includes:

Tax-Free Bonds
Taxable Bonds
Government Guaranteed Bonds
Zero Coupon Bonds
Perpetual Bonds
Market Linked Bonds
ESG Bonds
Securitization of future lease receivables

These instruments will be available through private placements or public offerings, ensuring a flexible approach to fundraising.

Comprehensive Funding Strategy

IRFC’s fundraising strategy further encompasses potential loans from banks and financial institutions, as well as institutional financing. This multifaceted approach will support various needs, including:

Funding requirements for Indian Railways
New business ventures
Committed liabilities
Refinancing of existing loans
General corporate purposes

Timing and market conditions will dictate the issuance of these financial products.

IRFC Share Price Trends

In terms of market performance, IRFC shares have experienced a downturn, with an 8% decline over the past three months. Year-to-date, the stock has dropped by 16%, and a 20% decrease has been observed over the last year. However, the long-term outlook is more promising, as IRFC shares have soared by an impressive 300% in the past two years and 465% over the last three years. As of 2:15 PM, IRFC shares were trading 1.09% lower at ₹127.30 on the BSE.

In conclusion, while IRFC faces short-term challenges reflected in its recent profit report, the company’s ambitious borrowing strategy and historical growth trajectory suggest a positive outlook for the future. For more insights on financial trends and market data, check out our related articles.