IRFC, IRCTC get ‘navratna’ status; here’s how PSU railway stocks reacted

Shares of state-owned railways stocks Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) remained in focus on Tuesday after they secured the ‘Navratna’ status from the Government of India on March 3. Cheering the news, shares of IRFC and IRCTC shares surged up to 4%, in an otherwise weak broader market.

At 11:15 AM, IRFC share price was quoting at ₹115.10, up 3.5% over the previous closing price, with a market capitalisation of ₹1.5 lakh crore. The stock touched a high of ₹115.40 in early trade. The PSU stock has corrected more than half from its 52-week high of ₹229.05 touched on July 15, 2024, slipping to a 52-week low of ₹108.05 on March 3, 2025. It has fallen 23% in a year; 35% in six months; and 24% in the calendar year 2025.

On the other hand, IRCTC shares rose as much as 0.8% to ₹681.50, while its market cap climbed to ₹54,276 crore. In the previous session, the railway stock touched its 52-week low of ₹655.70, correcting 435 from its 52-week high of ₹1,148.30 hit on May 22, 2024. The largecap stock has fallen 28% in a year and 14% year-to-date (YTD).

Meanwhile, the BSE benchmark Sensex was trading 137 points lower at 72,948, and the NSE Nifty50 was down 48 points at 22,070 level.  

Centre grants ‘navratna’ status to IRFC, IRCTC

The government of India on March 3 granted 'Navratna' status to public sector undertakings IRFC and IRCTC. In a social media post on X, the Department of Public Enterprises announced that the government has approved the upgradation of IRCTC and IRFC to Navratna CPSEs, making them the 25th and 26th 'Navratnas' among Central Public Sector Enterprises (CPSEs).

“IRCTC is a Ministry of Railways CPSE with an annual turnover of ₹4,270.18 crore, PAT of ₹1,111.26 crore and a net worth of ₹3,229.97 crore for FY2023-24,” the department said in its post.  

“IRFC is a Ministry of Railways CPSE with an annual turnover of ₹26,644 crore, PAT of ₹6,412 crore and a net worth of ₹49,178 crore for FY2023-24,” read the another post.

Minister of Railways Ashwini Vaishnaw also took to X to congratulate both the PSU entities on achieving this milestone. “Congratulations to team IRCTC and team IRFC on being upgraded to Navratna status,” he said.  

With these two new entrants, seven listed railway PSU companies have been given 'Navratna' status. Of the 12 railway CPSEs, Concor, RVNL, IRCON, RITES and RailTel were elevated earlier.

What are Navratna PSUs?

Public Sector Undertakings (PSUs) in India are classified into Maharatna, Navratna, and Miniratna categories based on financial performance and market standing. Navratna status, introduced by the government in 1997, is awarded to Miniratna Category I companies in recognition of their strong financial and market performance. This status grants these companies greater autonomy, allowing them to invest up to ₹1,000 crore or 15% of their net worth in a single project without government approval, and up to 30% of their net worth annually, provided it does not exceed ₹1,000 crore. They can also establish overseas subsidiaries, form joint ventures, and engage in mergers and acquisitions to enhance their market position and operational efficiency.

As of now, there are 24 Navratna companies in India, including recent upgrades like SECI, NHPC, SJVN, and RailTel. To be eligible for Navratna status, a Miniratna-I company must have an "Excellent" or "Very Good" MoU rating in three out of the last five years and achieve a composite score of 60 or more across various performance indicators such as Net Profit, Net Worth, and Earnings Per Share. The last PSU that was upgraded to Navratna status was Mazagon Dock. As of August 5, there were 13 Maharatnas, 21 Navratnas (excluding the recent additions), 55 Miniratnas-I, 11 Miniratna-II central public sector enterprises.

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