IRFC Q2 earnings: Net profit rises 10% to ₹1,958 crore; board declares ₹1.15 interim dividend

Indian Railway Finance Corporation (IRFC) on Thursday reported a 10% year-on-year increase in net profit to ₹1,958 crore for the second quarter of FY27, compared with ₹1,777 crore in the corresponding period last year. 

Total income rose to ₹7,924 crore in the July-September quarter from ₹6,372 crore a year earlier, while total expenses increased to ₹5,966 crore from ₹4,595 crore, the railway-focused non-banking financial company (NBFC) said in a regulatory filing. 

IRFC, which operates under the administrative control of the Ministry of Railways, reported a net worth of ₹60,573 crore as of September 30, 2026, up from ₹56,194 crore a year earlier. Its net interest margin (NIM) stood at 1.50% on an annualised basis during the quarter. 

Board declares interim dividend 

The company's board approved an interim dividend of ₹1.15 per share, equivalent to 11% of the face value of ₹10 per share, for FY27. 

IRFC has fixed October 23, 2026, as the record date to determine shareholders eligible for the dividend. The payout will be made to shareholders whose names appear in the records of depositories for shares held in dematerialised form, or in the company's register of members for physical shares, as of the close of business on the record date. 

IRFC 2.0 targets railway-linked diversification 

Commenting on the results, IRFC Chairman and Managing Director Manoj Kumar Dubey said the company's railway-centric diversification strategy under IRFC 2.0 was beginning to deliver results. "The growing contribution of railway-linked businesses beyond Indian Railways is supporting better margins, strengthening PAT and improving NIM,” Dubey said. 

Looking ahead, the company is preparing to meet the financing requirements of newly sanctioned Dedicated Freight Corridors, high-speed rail corridors, national port expansion projects and renewable energy projects that have power purchase agreements (PPAs) with Indian Railways, he said. 

Dubey added that IRFC would follow a whole-of-government approach to support these financing requirements. 

"For IRFC, zero NPA is not just a status symbol but a sound business proposition," he said, reiterating the company's focus on maintaining asset quality. 

IRFC shares closed 0.94% lower at ₹79 on the BSE on Thursday, down ₹0.75.