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Indian Railway Finance Corporation (IRFC) reported a 10% year-on-year increase in net profit for the first quarter of FY27, supported by higher lease income and growth in overall revenue. The company recorded its highest-ever quarterly revenue, net worth and profitability despite a decline in interest income and a slight moderation in net interest margin. IRFC also maintained its zero non-performing asset (NPA) status while continuing to diversify beyond its traditional railway financing business. The company's net worth reached a record level, reflecting steady financial growth during the quarter.
Indian Railway Finance Corporation (IRFC), the dedicated financing arm of the Ministry of Railways, reported a 10% year-on-year increase in its consolidated net profit for the first quarter of FY27, supported by higher lease income and growth in overall income.
The non-banking financial company (NBFC) posted a net profit of INR 1,927 crore during the April-June quarter, compared with INR 1,746 crore in the corresponding period of the previous financial year, according to its regulatory filing.
The company's total income increased to INR 8,391 crore during the quarter from INR 6,918 crore a year earlier. The growth was largely driven by a sharp rise in lease income, which climbed to INR 7,094 crore from INR 5,404 crore in the corresponding quarter last year.
However, interest income declined to INR 1,148 crore, compared with INR 1,497 crore in the same period of the previous financial year.
IRFC's total expenses during the quarter stood at INR 6,464 crore, compared with INR 5,173 crore in the year-ago period. Meanwhile, its net interest margin (NIM) moderated slightly to 1.48% from 1.53% in the corresponding quarter of the previous financial year.
Commenting on the results, Chairman and Managing Director Manoj Kumar Dubey said the company had recorded its highest-ever quarterly revenue, net worth and profitability in the opening quarter of FY27. He added that the performance reflected the strength of IRFC's diversification strategy under its IRFC 2.0 roadmap, while the company continued to maintain a zero-NPA portfolio with high-quality assets.
Dubey further said IRFC remains focused on expanding its presence across mobility and allied sectors that have backward and forward linkages with the railway ecosystem, in line with the government's integrated infrastructure development approach.
The company's net worth reached a record INR 58,792 crore, up from INR 56,749 crore reported at the end of the corresponding period last year.
Assets Under Management (AUM) stood at INR 4.79 lakh crore at the end of the quarter, compared with INR 4.85 lakh crore at the close of the previous quarter.
IRFC, a Navratna public sector enterprise, primarily finances the acquisition of rolling stock, railway infrastructure projects and other assets for Indian Railways. In recent years, the company has also been expanding its lending portfolio into sectors linked to transport and infrastructure as part of its diversification strategy while continuing to maintain a zero-NPA record.
Source PTI
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