Indian Railway Finance Corp (IRFC): Top Railway Stock Up 2% After Q4; Plans Fundraising Of Rs 60,000 Cr; BUY?

Indian Railway Finance Corporation (IRFC), India's largest railway PSU stock, surged by nearly 2% on Tuesday, April 29, despite a decline in its Q4 net profit. The positive front in IRFC's earnings was its surge of 4% in total income and the announcement of a fundraising plan worth Rs 60,000 crore. IRFC is a multi-bagger of Indian Railways on a long-term basis.

IRFC Share Price:

On BSE, in the trading hours, IRFC stock opened at Rs 128.65 apiece on BSE and jumped by at least 1.8% to hit an intraday high of Rs 129.50 apiece. IRFC is the largest railway stock in terms of market share, with a market capitalisation of Rs 1,66,819.48 crore. The stock surged nearly 20% from its 52-week low of Rs 108.05 apiece, while its 52-week high is at Rs 229.05.

In a five-year span, using the HDFC Securities returns calculator, IRFC has rewarded with nearly 415% returns on Rs 1 lakh investment.

For instance, if an investor invested Rs 1 lakh on IRFC, five years ago, their investment is now worth Rs 5,14,879 with a gain of 414.88%. 5 years ago, in January 2021, IRFC shares were below Rs 25 levels.

IRFC Q4 Results:

During the fourth quarter of FY25, IRFC's net profit declined by 2.1% YoY to Rs 1,681.87 crore. On the other hand, its revenue from operations surged by 3.8% YoY to Rs 6,722.83 crore.

For the entire financial year ending 31st March 2025, IRFC reported a PAT of Rs. 6502.00 crore vis-a-vis Rs. 6412.11 crore reported in the corresponding period in the previous year. This is the highest ever PAT reported for a financial year in the history of IRFC.

Also, the total income for the FY ended 31st March 2025 grew by 1.88% and stands at Rs 27156.41 Crore as against Rs. 26655.92 Crore reported in corresponding period of the previous year. This is also highest ever revenue for a financial year in the history of IRFC.

The Assets Under Management (AUM) as of 31st March 2025, stands at Rs. 460047.84 crore, and the Earning Per Share of the company is at Rs. 4.98 for the period ended 31st March 2025. The company's net worth as of 31st March 2025, stands at Rs. 52667.77 crore up by 7.09%, as against Rs. 49178.57 crore reported as of 31st March 2024.

On the financial performance, Manoj Kumar Dubey, Chairman & Managing Director, IRFC highlighted that IRFC is strategically diversifying its lending portfolio, positioning itself as a key lender in the infrastructure and logistics ecosystem having railways at its centre. IRFC expanded financing beyond the Ministry of Railways, funding projects with railway linkages.

He pointed out that in the first four months of the calendar year 2025, IRFC mopped up the business to the tune of Rs. 14,000 crores. It includes a ₹700 crore finance lease for NTPC's BOBR rakes, a ₹5,000 crore term loan sanction to NTPC Renewable Energy Limited, and emerging as the L1 bidder for a ₹3,167 crore loan for PVUNL's Banhardih Coal Block. IRFC also secured a ₹5,000 crore loan bid for NTPC's capital expenditure and also signed MoUs with REMCL for renewable energy projects and MMRDA for ₹50,000 crore in infrastructure development, enhancing transport and reducing urban congestion.

IRFC Fundraising:

In a meeting held on April 28th, IRFC's board of directors have approved raising of resources for the financial year 2025-26 up to Rs. 60,000 crore from both domestic and international market, through a prudent mix of Tax Free Bonds, Taxable Bonds on private placement or public issue basis.

The fund could be raised through Capital Gain Bonds u/s 54EC of Income Tax Act, Government Guaranteed Bonds, Govt. Serviced Bonds, Zero coupon bonds, Perpetual bonds, Subordinated bonds, Market linked bonds, Environment, Social and Governance (ESG) Bonds, Separately Transferable Redeemable Principal Parts (STRPP) or any other bonds/debentures, on private placement or public issue basis, Loans from Banks and other Financial Institutions, Institutional Financing, Securitization of future lease receivables, ECBs etc. at appropriate time.

IRFC said that the funds will be resourced keeping in view, the market conditions and requirement of funds of the Company for meeting the funding requirement of Indian Railways, if any, new business activities, committed liabilities, refinancing of existing loans and for other general corporate purposes in one or more tranches during the financial year.

Should You BUY IRFC Stock?

Market experts have recommended accumulating IRFC on dip, due to its low-risky fundamentals and strong ties in Indian Railways. The experts have suggested to keep a close watch to the bond market trends.

IRFC's share price today captures a blend of good financial fundamentals, favorable dividend-related sentiment, and beneficial legal and policy developments. Short-term volatility may persist. However, the strategic role of the company in infrastructure financing shows its long-term growth potential, as per Analytics Insight.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.