Indian Railway Finance Corporation (IRFC) Q3 25/26 earnings summary

Executive summary

• Transitioned from a single-client to a multi-client model, with 95.23% of AUM exposed to the Ministry of Railways, and achieved record AUM of ₹4,75,451.25 crore as of December 31, 2025.

• Achieved highest-ever quarterly PAT of ₹1,802.19 crore for Q3 FY26, and nine-month PAT of ₹5,324.86 crore, up 10.47% year-over-year.

• Net Interest Margin (NIM) for Q3 was 1.51%, up from 1.4% last year, with full-year NIM expected to exceed 1.5%.

• Maintains highest credit ratings (AAA/A1+), zero NPA record, and enjoys regulatory exemptions.

• Secured a JPY 46.458 billion (USD 300 million) ECB facility and issued Zero-Coupon Bonds, enhancing funding flexibility.

Financial highlights

• Profit after tax (PAT) for 9M FY 25-26 was ₹5,324.86 crore, up 10.47% year-over-year; revenue from operations was ₹19,948.40 crore.

• Net Interest Income for 9M FY 25-26 grew 9.27% year-over-year to ₹5,309.05 crore.

• Operating expenses remain negligible, below 0.1% of total income.

• Lease income saw a quantum jump due to execution of deferred agreements with the Ministry of Railways.

• Net worth reached ₹56,625.41 crore as of December 31, 2025.

Outlook and guidance

• AUM is projected to hover around ₹5 lakh crore in the near term, with a five-year target to add ₹3 lakh crore through 20 new entities.

• By 2030, the business mix is expected to be 60% Indian Railways and 40% from the broader railway ecosystem, with higher margins from the latter.

• Strategic diversification into power, renewables, logistics, and co-financing with multilateral agencies is underway.

• PAT, NIM, and AUM are all expected to grow each quarter, with revenue growth anticipated as new agreements are signed and disbursements accelerate.