Indian Railway Finance Corporation Ltd.
Banking · NSE
52-week range
₹87 – ₹146
From 52w high
-27.4%
RSI (14)
59.4
vs SMA 50 / 200
↑ 50 · ↓ 200
Indian Railway Finance Corporation (IRFC) is a government-backed NBFC that raises market borrowings to fund rolling stock and railway infrastructure on behalf of Indian Railways, earning a regulated spread. At ₹105.15, the stock trades below its 200-day SMA of ₹115.20 and is down 11.62% over 12 months, with a 28.05% drawdown from its 52-week high. Trailing PE stands at 19.6x versus a forward PE of 15.2x, and the dividend yield is 2.74%.
- ✓Revenue and earnings growth has been consistent at approximately 10.6% and 10.4% respectively over 5 years, demonstrating steady compounding aligned with Indian Railways capex cycle.
- ✓Profit margin of 97.32% reflects the pass-through financing model where nearly all revenue flows to the bottom line, a structural feature of the NBFC-infrastructure lender design.
- ✓Current price of ₹105.15 is 5.3% above the 50-day SMA of ₹99.86, indicating short-term price stabilisation after the broader 12-month decline.
- ✓The Telangana government approved a ₹13,615-crore IRFC loan for the Hyderabad Metro Rail takeover (April 2026), and management cited a ₹3 lakh crore business pipeline target by 2030, indicating active origination beyond the core Indian Railways mandate.
- ✗Debt-to-equity of 744.6 reflects the entity's entire funding model resting on market borrowings; while counterparty risk is effectively sovereign (100% exposure to Indian Railways / Ministry of Railways), the leverage structure is fully undiversified with no alternative lending segments.
- ✗ROE of 12.9% ranks last among 5 reportable peers in the Banking sector grouping, with Bajaj Finance at 17.91% and HDFCBANK at 13.82%; the consistency score of 36/100 and only 1 year above 15% ROE signals limited capital productivity relative to this peer set.
- ✗Price remains 8.7% below the 200-day SMA of ₹115.20 and has declined 28.05% from its 52-week high, with no sector-level price momentum data available for peers to contextualise whether this is IRFC-specific or a broader sector move.
- ✗FCF has been positive in only 2 of the tracked years, consistent with the capital-intensive pass-through model, but limits the degree to which dividend growth or balance sheet flexibility can be independently demonstrated.
- ·IRFC received Telangana government approval for a ₹13,615-crore loan to finance the Hyderabad Metro Rail Phase 1 takeover (April 24, 2026), extending its lending scope to state-level urban transit infrastructure beyond Indian Railways rolling stock.
- ·Management outlined a target of ₹3 lakh crore in cumulative business by 2030, referencing the IRFC 2.0 strategic vision; Q4 FY26 results are pending (result date watch per PSU Connect, May 7, 2026).
- ·IRFC received an NSE fine waiver approval (April 25, 2026); the specific fine or compliance matter was not detailed in available headlines, representing an open disclosure item.
- ?Does the 10.4% earnings CAGR over 5 years reflect a structural growth rate tied to government railway capex allocation, or is it sensitive to shifts in Union Budget infrastructure spending priorities?
- ?How does the regulated spread that IRFC earns on its Indian Railways loans compare historically to its cost of borrowing, and what happens to net interest margin if market interest rates rise materially?
- ?The Hyderabad Metro loan and the ₹3 lakh crore 2030 target suggest diversification beyond the traditional Indian Railways mandate — does this introduce new counterparty credit profiles or regulatory complexity that differs from the core sovereign-backed model?
- ?Given that the forward PE of 15.2x implies a meaningful derating from the trailing 19.6x, what earnings trajectory or re-rating scenario would need to materialise, and how consistent is that with the 5-year 10.4% growth history?
PE
19.6
Forward PE
15.2
ROE
+12.9%
Profit margin
+97.3%
D/E
744.59
Dividend yield
+2.7%
Quality score
50/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.