IRFC Shares Rise 5% Amid Record Q1 Performance

IRFC shares rose 5% after the company reported its strongest-ever quarterly performance for Q1FY26, driven by robust earnings growth and operational improvements. IRFC's total income rose to ₹6,918.24 crore, up from ₹6,766.03 crore in Q1FY25, marking the highest-ever quarterly revenue in its history. Profit After Tax grew 10.71% Y-o-Y to ₹1,745.69 crore, also a record high. Net interest margin improved to 1.53%, and the debt-to-equity ratio was 7.44.

Indian Railway Finance Corporation (IRFC) shares rose 5% on Wednesday after the company reported its strongest-ever quarterly performance for Q1FY26. The company's total income rose to ₹6,918.24 crore, up from ₹6,766.03 crore in Q1FY25, marking the highest-ever quarterly revenue in its history. Profit After Tax grew 10.71% year-on-year (YoY) to ₹1,745.69 crore, also a record high. The net interest margin improved to 1.53%, and the debt-to-equity ratio was 7.44 [4].

IRFC's revenue from operations increased to ₹6,915.38 crore, up from ₹6,765.68 crore in the same quarter last year. Lease income, a significant component of IRFC's operations, showed a notable jump to ₹5,403.75 crore, up from ₹4,946.60 crore, indicating deeper involvement in railway asset financing [4].

The company's net worth expanded to ₹54,423.96 crore, compared to ₹50,772.21 crore in the corresponding quarter last year. Debt outstanding decreased to ₹404,810.39 crore, down from ₹407,031.06 crore. As a result, the debt-equity ratio improved significantly to 7.44x, from 8.02x in Q1FY25 and 7.83x in Q4FY25, showing enhanced balance sheet strength [4].

IRFC continued to maintain a zero-NPA record, underlining the low-risk nature of its lending portfolio. Additionally, its overhead costs remained among the lowest in the industry, reinforcing IRFC's position as one of the most operationally efficient NBFCs. The net interest margin (NIM) also improved to 1.53% (annualised) – the highest in the past three years [4].

While interest income declined to ₹1,497.32 crore compared to ₹1,819.03 crore in Q1FY25, the shortfall was effectively compensated by the jump in lease income. This reflects IRFC's ongoing strategic shift toward lease-based funding structures, aligning with Indian Railways' capital requirements [4].

This quarter marked IRFC's first full reporting period since receiving Navratna status, which has enabled greater autonomy in operational and financial decisions [4].

References:
[1] https://www.republicworld.com/business/hdfc-bank-q1-fy26-results-out-net-profit-rises-12-announces-rs-5-special-dividend-11-bonus-issuecheck-record-date
[2] https://m.economictimes.com/markets/stocks/news/irfc-shares-in-focus-after-q1-profit-rises-11-yoy-to-record-rs-1746-crore/articleshow/122848616.cms
[3] https://economictimes.indiatimes.com/markets/stocks/news/irfc-shares-in-focus-after-q1-profit-rises-11-yoy-to-record-rs-1746-crore/articleshow/122848616.cms
[4] https://hdfcsky.com/news/irfc-q1fy26-results-record-profit-as-lease-income-surges