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Indian Railway Finance Corp. Ltd.
(IRFC)
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Rating:54Neutral
Price Target:
₹79.00
▼(-8.10% Downside)
Action:Reiterated
Date:08/17/26
The score is primarily weighed down by elevated financial risk (very high leverage and volatile cash flow history) and clear technical weakness (trading below major moving averages with negative momentum). These are partially offset by strong historical profitability and a moderate valuation profile (P/E ~15.9 with ~2.4% dividend yield).
Positive Factors
Government-linked rail financing franchise
IRFC’s government-owned status and dedicated role in financing Indian Railways provide a structurally embedded business position. Its long-tenor funding supports rolling stock and infrastructure needs, creating an established franchise tied to a large public-sector investment program.
Negative Factors
Very high and rising leverage
IRFC’s very high and increasing leverage leaves the balance sheet sensitive to refinancing conditions and borrowing costs. Because the business funds assets through substantial debt, elevated leverage can restrict financial flexibility and make earnings more vulnerable to changes in funding economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Government-linked rail financing franchise
IRFC’s government-owned status and dedicated role in financing Indian Railways provide a structurally embedded business position. Its long-tenor funding supports rolling stock and infrastructure needs, creating an established franchise tied to a large public-sector investment program.
Read all positive factors
Indian Railway Finance Corp. Ltd. (IRFC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.01T
Dividend Yield2.73%
Average Volume (3M)714.77K
Price to Earnings (P/E)14.0
Beta (1Y)1.65
Revenue Growth5.50%
EPS Growth7.79%
CountryIN
Employees59
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)5.50
Shares Outstanding13,068,506,000
10 Day Avg. Volume831,979
30 Day Avg. Volume714,774
Financial Highlights & Ratios
PEG Ratio2.13
Price to Book (P/B)2.01
Price to Sales (P/S)4.17
P/FCF Ratio28.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Indian Railway Finance Corp. Ltd. Business Overview & Revenue Model
Company Description
Indian Railway Finance Corporation Limited is an Indian financial institution that secures capital from financial markets. Its primary purpose is to fund the procurement and development of critical assets, which are subsequently leased to Indian R...
How the Company Makes Money
IRFC primarily makes money through interest and lease-related income earned on funds it lends or effectively leases to Indian Railways, funded by IRFC’s own borrowings.
Key revenue drivers and mechanics:
1) Spread-based income (core model): IRFC ...
Indian Railway Finance Corp. Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 287.49B | 273.38B | 270.65B | 265.30B | 236.51B | 202.80B |
| Gross Profit | 138.57B | 73.21B | 146.01B | 122.01B | 113.26B | 117.06B |
| EBITDA | 72.34B | 70.15B | 144.99B | 121.44B | 112.95B | 115.64B |
| Net Income | 71.91B | 70.09B | 65.02B | 64.12B | 61.67B | 60.90B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 5.17T | 4.89T | 4.85T | 4.91T | 4.50T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 9.78B | 61.43B | 6.00B | 6.74B | 8.92B |
| Total Debt | 0.00 | 4.36T | 4.12T | 4.12T | 4.19T | 3.88T |
| Total Liabilities | -567.49B | 4.60T | 4.36T | 4.36T | 4.46T | 4.09T |
| Stockholders Equity | 567.49B | 567.49B | 526.68B | 491.79B | 446.80B | 409.96B |
Cash Flow | ||||||
| Free Cash Flow | 6.77B | 40.42B | 82.29B | 79.06B | -285.89B | -644.19B |
| Operating Cash Flow | 6.90B | 40.56B | 82.30B | 79.14B | -285.88B | -644.12B |
| Investing Cash Flow | -288.88B | -307.81B | -1.00M | -75.40M | 910.00K | -47.19M |
| Financing Cash Flow | 285.35B | 215.60B | -25.72B | -80.46B | 286.44B | 642.66B |
Indian Railway Finance Corp. Ltd. Technical Analysis
Negative
85.96
Price Trends
84.35
Negative
89.45
Negative
98.93
Negative
Market Momentum
-1.76
Positive
31.60
Neutral
24.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRFC, the sentiment is Negative. The current price of 85.96 is above the 20-day moving average (MA) of 80.39, above the 50-day MA of 84.35, and below the 200-day MA of 98.93, indicating a bearish trend. The MACD of -1.76 indicates Positive momentum. The RSI at 31.60 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IRFC.
Indian Railway Finance Corp. Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹761.27B | 4.74 | ― | 6.31% | 0.21% | -4.87% | |
65 Neutral | ₹1.05T | 4.03 | ― | 5.90% | 3.53% | 7.13% | |
61 Neutral | ₹18.42B | 8.27 | ― | 3.38% | -22.40% | -27.91% | |
59 Neutral | ₹311.26B | 15.86 | ― | 1.22% | 19.93% | 20.62% | |
57 Neutral | ₹322.51B | 7.60 | ― | 4.47% | 21.01% | 52.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹1.01T | 14.01 | ― | 2.73% | 5.50% | 7.79% |
* General Sector Average
IN:IRFC
Indian Railway Finance Corp. Ltd.
77.05
-46.43
-37.60%
IN:HUDCO
Housing & Urban Development Corp. Ltd.
161.10
-65.52
-28.91%
IN:IREDA
Indian Renewable Energy Development Agency Ltd.
110.80
-41.42
-27.21%
IN:PFC
Power Finance Corporation Limited
318.00
-75.05
-19.09%
IN:PFS
PTC India Financial Services Limited
28.68
-7.23
-20.13%
IN:RECLTD
REC Limited
289.10
-72.67
-20.09%
Indian Railway Finance Corp. Ltd. Corporate Events
IRFC Seeks Waiver After Exchanges Fine It for Board Governance Lapses
Sep 30, 2026
Indian Railway Finance Corporation Ltd. has reported that the National Stock Exchange and BSE have levied fines for non-compliance with SEBI’s listing regulations in the June 2026 quarter, citing issues with board composition, board quorum, ...
IRFC Adds Two Non-Official Independent Directors to Strengthen Board Governance
Aug 20, 2026
Indian Railway Finance Corporation Ltd. has strengthened its board by appointing Shri Pradeep Ahlawat and Mrs. Manjula Mishra as additional non-official independent directors effective 20 August 2026. Both appointments are for a term of three year...
IRFC bolsters board with two new non-official independent directors
Aug 20, 2026
Indian Railway Finance Corporation Ltd. has expanded its board strength with the appointment of Shri Pradeep Ahlawat and Mrs. Manjula Mishra as additional non-official independent directors, effective 20 August 2026. Both appointments are for a pe...
IRFC Files Newspaper Publication Disclosures with NSE and BSE
Aug 2, 2026
Indian Railway Finance Corporation Ltd. has notified the stock exchanges that it has published mandatory disclosures in both English and Hindi newspapers in line with Regulation 47 of the SEBI Listing Obligations and Disclosure Requirements Regula...
Madras High Court Sets Aside ₹353 Crore Tax Demand Against IRFC for Fresh Review
Jul 30, 2026
Indian Railway Finance Corporation Limited has disclosed that the High Court of Judicature at Madras has set aside an earlier order and recovery notice issued by the Assistant Commissioner (State Tax), Chennai, relating to a demand of ₹353.1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.