Indian Railway Finance Corporation Q2 FY27 results: net profit up 10.2% to ₹1,958 crore, revenue up 23.5%

How did Indian Railway Finance Corporation perform in Q2 FY27?

Indian Railway Finance Corporation reported standalone revenue of ₹7,866 crore for Q2 FY27, up ₹1,495 crore or 23.5% from Q2 FY26. Against Q1 FY27, revenue was down ₹394.70 crore or 4.8%. Total income was ₹7,924.46 crore, compared with ₹6,371.91 crore a year earlier and ₹8,391.34 crore in the previous quarter.

PAT was ₹1,958 crore for the quarter, up ₹181.50 crore or 10.2% from Q2 FY26 and ₹31.27 crore or 1.6% from Q1 FY27. Basic EPS was ₹1.50, compared with ₹1.36 a year earlier and ₹1.47 in the previous quarter. The PAT margin was 24.9%, down 3.0 percentage points from Q2 FY26 but up 1.6 percentage points from Q1 FY27.

EBITDA and EBITDA margin were not reported. The company had no subsidiary, associate or joint venture as of 30 September 2026 and therefore did not prepare consolidated financial results, making the reported figures standalone.

What changed in Indian Railway Finance Corporation's costs and profit?

Total expenses rose ₹1,371 crore or 29.8% from Q2 FY26 to ₹5,966 crore. Finance costs were the largest component at ₹5,917 crore, up ₹1,373 crore or 30.2% year on year, while employee cost rose ₹1.67 crore or 29.9% to ₹7.25 crore. Depreciation increased ₹0.72 crore or 53.3% to ₹2.07 crore, and other expenses rose ₹0.46 crore or 1.2% to ₹40.02 crore.

Other income increased ₹58.03 crore to ₹58.05 crore from Q2 FY26. There was no exceptional item in the quarter, and the reported tax remained unchanged. Against Q1 FY27, total expenses fell ₹498.15 crore or 7.7%, including a ₹503.96 crore or 7.8% reduction in finance costs, partly offset by higher employee cost, depreciation and other expenses.

Quarterly profit was not affected by an exceptional item. The filing states that provisions for new businesses were made in Q4 FY26 under RBI norms, but it does not give a specific reason for the year-on-year movement in the Q2 FY27 cost lines.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹16,127.52 crore, up ₹2,840.25 crore or 21.4% from H1 FY26. Total income increased ₹3,025.65 crore or 22.8% to ₹16,315.8 crore. PBT and PAT were each ₹3,885.69 crore, up ₹363.02 crore or 10.3% from H1 FY26.

H1 basic EPS was ₹2.97, compared with ₹2.70 in H1 FY26. The increase was ₹0.27 or 10.0%. Management said the first-half results exceeded its guidance, with revenue growth above 20% and PAT growth above 10%.

What do the balance sheet and cash flow show?

Total assets were ₹527,976.59 crore as of 30 September 2026, compared with ₹516,676.48 crore as of 31 March 2026. Total equity rose to ₹60,573.35 crore from ₹56,748.76 crore, while cash and cash equivalents increased to ₹29,946.38 crore from ₹211.31 crore. Borrowings were not reported in the supplied figures.

Operating cash flow for H1 FY27 was ₹37,212.48 crore, compared with ₹17,287.3 crore in H1 FY26. Investing cash flow was negative ₹0.64 crore, against negative ₹0.42 crore a year earlier, while financing cash flow was negative ₹7,476.77 crore, compared with negative ₹4,216.69 crore. Capital expenditure was ₹0.64 crore versus ₹0.92 crore.

How has Indian Railway Finance Corporation done over the last 8 quarters?

Revenue increased year on year in each of the last three quarters, while profit rose year on year in each of the last six quarters. In the latest sequence, revenue rose from ₹6,915.38 crore in Q1 FY26 to ₹7,866.41 crore in Q2 FY27, with a dip from ₹8,261.11 crore in Q1 FY27. PAT reached ₹1,958.48 crore in Q2 FY27, the highest figure in the eight-quarter series shown.

PAT declined from ₹1,802.19 crore in Q3 FY26 to ₹1,684.31 crore in Q4 FY26, then increased in Q1 and Q2 FY27. No quarterly EBITDA-margin figures were provided, so the trend in that measure cannot be stated from the supplied data.

What else did the company announce?

The board approved the unaudited financial results for the quarter and half year ended 30 September 2026, together with the cash-flow statement, statement of assets and liabilities and the joint statutory auditor’s limited-review report. The audit committee reviewed the results on 15 October 2026 before the board approved them. The board also approved the policy for transition to the NBFC Upper Layer Regulatory Framework.

The company declared an interim dividend of ₹1.15 per equity share of ₹10 each for FY27. The record date was set at 23 October 2026, and the dividend was to be paid within 30 days of declaration, exclusively through electronic mode. No fund raise or appointment was reported in the same-day filings.

What did Indian Railway Finance Corporation's management say?

Management maintained its FY27 AUM target of near ₹5 lakh crore, possibly achieved by the end of Q3, and said FY27 disbursement would surpass the previous financial year’s figure. It also expects annual disbursement of ₹50,000+ crores from FY28 for the next 10 years and kept WACC guidance at 6.55%.

Chairman, MD and CEO Manoj Kumar Dubey said the business mix would reach 60% railway and 40% non-railway by 2030. Management expects nearly double-digit PAT growth as diversification continues and said non-railway NIM is 2-3.5x that of railway lending.

Dubey said: “Numbers are not manufactured; they are earned.” He also said the company was not facing the same prepayment pressure as some peers because its funding cost was low. Management identified the ₹20 lakh crores-plus railway infrastructure pipeline, higher-margin non-railway lending and diversification as priorities; no analyst concerns or risks were documented in the supplied call material.

How did Indian Railway Finance Corporation shares react?

The filing appeared after market hours. From the price when it was released, the stock was down 1.7% after five minutes, 2.0% after 15 minutes and 1.5% after 30 minutes. On the reaction day, it closed 1.7% above its previous close of ₹78.90.

By the next day’s close, the stock was down 0.6% from the pre-results close, and by the fifth session it was down 5.8%. The Financial Institution industry median was down 2.4% by the next day and down 5.9% over five sessions, leaving IRFC ahead by 1.8 percentage points and 0.1 percentage points, respectively.

Earlier results-day reactions were mixed: the stock fell 1.6% on 14 May 2026 and 1.5% on 19 January 2026, rose 0.7% on 15 October 2025 and 3.5% on 22 July 2025, and fell 0.2% on 20 January 2025.