IRFCIndian Railway Finance Corporation Ltd

Indian Railway Finance Corporation Q2 FY27 Results: Standalone Net Profit ₹1,958 Crore on Total Income of ₹7,924 Crore

Earnings
Financial Services

Blacklitt Research15 October 20262 min read

An Indian Railways diesel locomotive hauling a passenger train — Illustrative image. Photo: Vinoo202, via Wikimedia Commons (public domain)

Indian Railway Finance Corporation reported standalone total income of ₹7,924.46 crore and net profit of ₹1,958.48 crore for the quarter ended 30 Sep 2026.

Key highlights

Standalone

The company on its own, without its subsidiaries

Total income: ₹7,924 crore, up 24.4% YoY, down 5.6% QoQ
Net profit: ₹1,958 crore, up 10.2% YoY, up 1.6% QoQ
EPS: ₹1.50, against ₹1.36 in Q2 FY26
Interim dividend: ₹1.15 a share, record date 23 October 2026

Summary

Standalone ₹ crore
Particulars	Q2 FY27	Q2 FY26	YoY	Q1 FY27	QoQ
	7,924.46	6,371.91	+24.4%	8,391.34	-5.6%
Revenue from operations	7,866.41	6,371.89	+23.5%	8,261.11	-4.8%
Other income	58.05	0.02	n/a	130.23	-55.4%
	1,958.48	1,776.98	+10.2%	1,927.21	+1.6%
Finance costs	5,917.08	4,544.42	+30.2%	6,421.04	-7.8%
Depreciation	2.07	1.35	+53.3%	1.15	+80.0%
Tax expense	0.00	0.00	n/a	0.00	n/a
Net profit margin	24.71%	27.89%	-3.17 pp	22.97%	+1.75 pp
Tax as share of profit before tax	0.0%	0.0%	+0.00 pp	0.0%	+0.00 pp
EPS, basic (₹)	1.50	1.36	+10.3%	1.47	+2.0%

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

The business is the gap between what IRFC earns and what it pays. Revenue from operations of ₹7,866.41 crore less finance costs of ₹5,917.08 crore leaves about ₹1,949 crore (derived), almost exactly the net profit of ₹1,958.48 crore, because other costs are tiny and no tax is charged in the figures. Finance costs took 75.2% of revenue against 71.3% a year ago (derived), so revenue grew 23.5% while profit grew only 10.2% and the net margin fell to 24.71% from 27.89%.

The company reports a net interest margin of 1.50% (annualised) for the quarter and no non-performing assets. Against June, revenue fell 4.8% and finance costs 7.8%, and profit rose 1.6% from ₹1,927.21 crore. For H1 FY27 profit is ₹3,885.69 crore against ₹3,522.67 crore (+10.31%), which the company calls its highest for any half year, and total income is ₹16,315.80 crore against ₹13,290.15 crore (+22.77%). Net worth is ₹60,573.35 crore against ₹56,748.76 crore at 31 March 2026.

The board declared a second interim dividend of ₹1.15 on shares of face value ₹10, which the company says is the highest payable in a single tranche. With about 1,306 crore shares (derived from profit and earnings per share) that is about ₹1,500 crore, roughly 77% of the quarter's profit (derived). The record date is 23 October 2026 and payment is within 30 days of the declaration.

Inference

IRFC's profit grows more slowly than its revenue because borrowing costs are taking a larger share, which a margin of 1.50% leaves little room to absorb.

The filing reports no non-performing assets but does not describe the borrower or the pricing behind the margin, so what happens to the margin as the book grows is not in the figures.

Reference: Original filing (PDF)

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