IRFC posts strong FY26 performance, diversification push drives record AUM, higher margins and robust PAT

Indian Railway Finance Corporation Limited (IRFC), a Navratna CPSE under the Ministry of Railways, reported a strong financial performance for FY 2025–26, marking its first full year of strategic diversification. The company recorded a 7.80% rise in annual profit after tax (PAT) with positive revenue growth, net worth raising to all time high at Rs 56,748 crore and assets under management (AUM) crossing an all-time high at Rs 4.85 lakh crore. The diversification-led expansion resulted in improved spreads and a consistent rise in net interest margin (NIM), while IRFC maintained its pristine zero NPA status. The company indicated that a steady pipeline and emerging opportunities in sectors such as metro and ports are expected to further accelerate growth in the coming financial year, following its whole-of-government approach.

Commenting on the performance, Manoj Kumar Dubey, Chairman & Managing Director, IRFC, said, “FY26 has been a defining year for IRFC. We have successfully built a diversified infrastructure financing platform while remaining firmly aligned to our core mandate of supporting infrastructure within the railway ecosystem. Our diversification strategy is now translating into stronger spreads, improved margins and enhanced shareholder value. IRFC has demonstrated its ability to compete effectively in the broader infrastructure financing market while maintaining financial prudence and its long-standing record of zero NPAs. As a Navratna CPSE, IRFC has been entrusted with a larger responsibility in supporting nation-building infrastructure, and we are well positioned to play a bigger strategic role in India’s infrastructure growth story.”

“The audited financial results for the quarter and year ended March 31, 2026 reflect a structural shift in IRFC’s business model, from a traditional railway financier to a diversified infrastructure financing institution keeping Railways at its Centre”, added Dubey.

Established in 1986 primarily to mobilise funds for Indian Railways, IRFC has, over the past year, recalibrated its operations in response to reduced reliance on its traditional lending model. With Indian Railways not availing fresh disbursements since FY 2023–24, the company has expanded into sectors with strong forward and backward linkages to railways, including power generation, renewable energy, transmission, fertilizers and railway-linked infrastructure.

During FY26, IRFC sanctioned projects worth Rs 72,949 crore and disbursed approximately Rs 35,067 crore, exceeding its annual guidance and demonstrating rapid scale-up of its diversified lending portfolio. It actively participated in competitive and bilateral financing opportunities, securing bids worth around Rs 56,251 crore and building a robust pipeline of high-quality infrastructure assets.

Among key transactions, IRFC refinanced Dedicated Freight Corridor Corporation of India Limited’s (DFCCIL) World Bank exposure through a Rs 9,821 crore long-term rupee facility, resulting in savings of approximately Rs 2,700 crore. The company also executed a Rs 12,842 crore refinancing deal for Hindustan Urvarak & Rasayan Limited (HURL), marking its entry into large-ticket refinancing in the fertilizer sector.

IRFC further strengthened its presence in global markets through successful external commercial borrowing (ECB) transactions which witnessed strong investor participation and enabled optimisation of borrowing costs. The diversification strategy has begun to materially improve profitability metrics, with higher-yielding assets contributing to enhanced spreads compared to the traditional cost-plus railway financing model. The company’s NIM improved to 1.50% during FY26, reflecting the positive impact of this transition.

With a strengthened balance sheet, diversified portfolio and visible growth opportunities in emerging infrastructure segments, IRFC is positioning itself as a competitive infrastructure financier while continuing to operate within a prudent risk framework and a whole-of-government approach.