IRFC shares slip nearly 6%; analysts maintain bullish technical view

Shares of Indian Railway Finance Corporation Ltd (IRFC) declined 5.81 per cent in Monday's trade to hit a low of Rs 125.75, pausing their sharp five-session upward move.

In terms of earnings, the rail PSU reported a 10.2 per cent year-on-year (YoY) increase in net profit for the July-September quarter (Q2 FY26), at Rs 1,777 crore, up from Rs 1,612.65 crore in the same period last year. However, revenue from operations declined 7.6 per cent to Rs 6,371.89 crore in Q2 FY26, compared to Rs 6,899.34 crore in the corresponding quarter of FY25.

Technically, a few analysts hold a bullish outlook on IRFC with support seen at Rs 122–125 and resistance around Rs 137–145.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said IRFC witnessed a strong rise in price and volumes last week, taking the stock above major EMAs and the 200-day SMA, indicating a shift to a bullish trend. The Rs 124–122 zone is expected to offer support, while the ongoing strength could drive the stock towards the next resistance at Rs 140–145.

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, stated that support is placed at Rs 125 and resistance at Rs 137. A clear move above Rs 137 may lead to further upside towards Rs 142, with the short-term range likely between Rs 125 and Rs 142.

Ravi Singh, Chief Research Officer at Mastertrust, added that the stock remains strong on charts and may approach Rs 140 in the near term.

IRFC borrows funds from the financial markets to finance the acquisition or creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. As of September 2025, the government held an 86.36 per cent stake in the 'Navratna' PSU.