IRFC H1 FY2027 slides: revenue up 21%, diversification gains traction

Indian Railway Finance Corporation (IRFC) reported a 21% increase in revenue for the first half of FY2027, driven by successful diversification efforts beyond its core railway financing operations. The company's shares rose by 2.36% to ₹80.76, though they remain below their 52-week high of ₹137.17. IRFC's revenue from operations reached ₹16,127.52 crore, reflecting a 21.38% year-over-year growth.

Profit after tax grew by 10.31% to ₹3,885.69 crore, continuing a trend of double-digit profit growth in recent quarters. The company's total comprehensive income increased by 8.47% to ₹3,824.59 crore. IRFC's assets under management hit ₹4,69,767.03 crore by September 30, 2026, up from ₹4,61,973.43 crore in the previous year. The corporation declared an interim dividend of ₹1.15 per share for FY2027, up from ₹1.05 in the previous year, maintaining a payout ratio of around 40% of profits.

IRFC's financial position remains robust, with zero gross non-performing assets due to its exposure to the Ministry of Railways, providing minimal credit risk. The company's return ratios improved, with return on equity at 13.25% and return on assets at 1.49%. Net interest margin stood at 1.50%, and the net gearing ratio improved to 7.12x.

IRFC continues to benefit from regulatory exemptions, enabling it to fund activities in adjacent infrastructure sectors. The company's diversified portfolio spans nine sectors, with agreements totaling ₹96,999 crore across non-Ministry of Railways business segments. Management expects non-railway disbursements for FY2027 to exceed ₹35,000 crore, with most projects nearing completion for disbursement in the third or early fourth quarter. IRFC aims to shift its portfolio mix to 60% pure railways and 40% diversification by 2030.