Indian Railway Finance Corporation (IRFC), the financial branch of Indian Railways, has performed brilliantly in the first quarter of the current financial year (April-June 2025). The company earned a net profit of ₹ 1,746 crore, which is 11% more than the same quarter of the previous year. This boom has come due to improvement in better income and net interest margin (NIM). IRFC’s NIM reached 1.53%, which is the highest level in the last three years.
11% strong gains in profit
IRFC recorded a net profit of ₹ 1,746 crore in the June 2025 quarter. This is 11% higher than the last year’s April-June quarter of ₹ 1,577 crore. This achievement of the company reflects strong financial strategy and increasing demand for investment in the infrastructure of the railway. This non-banking financial company (NBFC), working under the Ministry of Railways, achieved this growth by balanced between income and expenses. The management of the company described it as the result of the strategy according to the changing needs of the railway sector.
Income increased, curb on expenditure
The total income of IRFC increased to ₹ 6,918 crore in this quarter, which was ₹ 6,766 crore in the same period last year. This growth became possible due to the company’s lending activities and smart financial models. On the other hand, there was a slight decrease in the total expenditure. This time the expenditure was ₹ 5,173 crore, compared to ₹ 5,189 crore last year. This strategy of cost control further strengthens the financial health of IRFC. The boom in Net Interest Margin (NIM) also played an important role in increasing the company’s income.
IRFC’s net interest margin (NIM) reached 1.53% in this quarter, the highest in the last three years. This growth was caused by the company’s strong lending spreads and cost management. It is clear from better NIM that IRFC is not only gathering cheap funds for the railways, but is also continuously improving its financial performance. This is a positive sign for investors in the railway sector, which rely on the stability and reliability of IRFC.
New record in net worth
The book value per share of the company was ₹ 41.65, which reflects its strong financial position. With this, the net worth of IRFC reached ₹ 54,423.96 crore, which is the highest level in the company’s history so far. This achievement outlines the long -term stability of IRFC and the ability of the railway to provide financial assistance to the infrastructure.
IRFC Chairman and Managing Director Manoj Kumar Dubey expressed happiness over this performance. He said, this quarter reflects the strength of IRFC’s financial strategy. We are committed to meeting the infrastructure of Indian Railways. We are promoting financial innovation and operational excellence amid the changes in the railway sector. His remarks highlight the important role of IRFC in modernization of Railways.
What is going on in IRFC shares
IRFC shares saw a decline of 2.73% on Tuesday and closed at ₹ 130.70. So far this year, the stock has decreased by 13.07%, while in the last one year there has been a decline of 36.11%. Nevertheless, the company’s market cap remains at ₹ 1.71 lakh crore, which reflects its strong market status. These are mixed signs for investors, but the company’s financial performance gives the future assurance of stability.
What is IRFC business
Indian Railway Finance Corporation (IRFC) is the financial unit of the Ministry of Railways. Its main task is to raise capital for railway and its associated organizations. This company provides cheaper funds for railways through bonds, loans and leasing models. The IRFC raises funds for the Railway rolling stock (eg engine and compartments), projects and infrastructure. It plays an important role in strengthening the transport system of the country by providing financial assistance to big investments of the railway.