IRFC Q3 Results: FY26 sanctions guidance achieved in nine months, margins improve

State-run Indian Railway Finance Corporation Ltd. (IRFC) announced on Monday, January 19, that it has managed to achieve its full-year sanctions guidance of ₹60,000 crore within the first nine months of the financial year.

IRFC made this announcement along with its December quarter results. Net profit for the period grew by 10.5% from last year to ₹1,802 crore, which, according to the company, is the highest-ever quarterly profit reported by the company.

Revenue for the quarter though, moderated by 1.5% from the year-ago quarter to ₹6,661 crore from 6,763 crore. The drop in topline is due to a one-year extension of a moratorium granted by the Ministry of Railways, for a project lease agreement, which impacted revenue recognition during the period.

"The corporation's ₹30,000 crore disbursement target for the year remains on track, with nearly three-fourths of the amount already disbursed by the end of Q3," Manoj Kumar Dubey, the CMD of IRFC said.

Assets under management at the end of the quarter rose to a record ₹4.75 lakh crore, despite the absence of fresh business from the Railways. The company also continued to maintain its "Zero NPA" status.

"Looking ahead, IRFC expects the positive impact of higher-margin diversified lending and fresh project agreements with Indian Railways, following the completion of the moratorium period, to become more visible from the next financial year," Dubey said.

IRFC's CMD went on to add that the company's is looking at exploring co-financing opportunities with multilateral agencies, refinancing of rail-linked projects, and selective expansion into sectors such as metro rail, renewable energy, logistics, and ports.

Shares of IRFC are recovering from the lows of the day, currently trading 0.8% lower at ₹121.11. The stock is down nearly 50% from its post-listing peak of ₹229, and also features among the list of stocks with low free float, as the government continues to hold a 86% stake in the company, above the minimum shareholding threshold of 75%.